SunSirs: Rebound Fruitless, China Shandong LPG Market Peak Season Fail?

In mid September, the LPG market continued to fall. According to the data monitoring of SunSirs, the average price of LPG in Shandong market was 3,006.67 RMB/ ton on September 14, and 2,876.67 RMB/ ton on September 22, with a decrease of 4.32% and a decrease of 10.10% compared with September 1.

After entering the traditional sales peak season in September, the trend of LPG market did not rise as expected, but went down. The main reason for the rebound failure is terminal demand. This year's demand is slower than that in previous years. September is about to pass, and the market has not yet improved significantly. The downstream demand has not increased. It mainly consumes more inventories and is cautious. And the market supply of LPG haD little change and the output was relatively sufficient. Due to the poor delivery situation and the gradual accumulation of inventory, manufacturers were forced to lower the price to stimulate downstream market entry.

On September 22, 2020, the opening price of LPG futures was 3,477, the highest price was 3,492, the lowest price was 3,333, the closing price was 3,418, the previous settlement price was 3,530, and the settlement price was 3,425, with a decrease of 112, a decrease of 3.22%, a turnover of 163,685, a position of 65,012, and a daily increase of -1,578. (unit: RMB/ ton)

At present, the trend of international crude oil price is uncertain, which has limited support for the LPG market. At present, the market supply is sufficient, the downstream demand has no obvious change, and the manufacturer's shipment situation is flat, which brings obvious restraint to the rise. Before the National Day holiday, the downstream storage and replenishment demand, the market transaction atmosphere may be improved, and it is expected that China LPG market will still be able to rise in the short term.

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