Price Trend

The domestic liquefied petroleum gas (Shandong) market fell as a whole this week. At the beginning of the week, the average price of the domestic liquefied petroleum gas market was 3760 yuan/ton, and at the end of the week, the average price was 3743.33 yuan/ton. Within the week, the price fell by 0.44%, 19.82% compared with the same period last year.

II. Analysis of Influencing Factors

Products: This week, the narrow adjustment of domestic liquefied petroleum gas is dominant, the overall decline, the general trading atmosphere in the market. As of August 23. The ex-factory price of liquefied gas of Sinopec Guangzhou Chemical Co., Ltd. is 3680 yuan/ton, that of Jingmen Petrochemical Co., Ltd. is 3380 yuan/ton, that of Shanghai Petrochemical Co., Ltd. is 3280 yuan/ton, that of Qingdao Petrochemical Co., Ltd. is 3480 yuan/ton, and that of Shijiazhuang Petrochemical Co., Ltd. is 3480 yuan/ton. The company’s liquefied gas ex-factory price is 3600 yuan/ton. Sinopec Luoyang Petrochemical Liquefied Gas ex-factory price is 3600 yuan/ton.

Industry chain: This week, the domestic dimethyl ether Market stabilized and then fell, with a flat trading atmosphere. This week, Henan Xinlian repeatedly implemented the price floor policy. As a major manufacturer, it protected the market price on the side and continued to keep the floor after the settlement price was lowered. Later in the week, but under the double pressure of other manufacturers’sales and inventory, the price center of gravity declined. This week, the propane market fell as a whole. Although the international crude oil rose, it did not show much support for the propane market. In addition, the market demand for propane has not improved significantly. The anticipated fall of CP price in September affected the market mentality. But the “gold, nine silver and ten ten” is coming. The manufacturers have a strong mentality and the price is stable at the beginning of the week. But in the later period, due to the continuing poor shipment, manufacturers have a backlog of inventory, let profit shipment dominate, price down. At present, the enthusiasm of downstream market entry is still acceptable, the overall smooth trading, inventory pressure has been released. Saudi Amy Corp. announced in August that the price of propane was narrowly lowered and the price of butane was narrowly increased. Propane was 370 US dollars/ton, down 5 US dollars/ton from last month; butane was 360 US dollars/ton, up 5 US dollars/ton from last month. The cost of long cargo propane is about 3056 yuan per ton on shore and 2980 yuan per ton on butane. This week, the domestic liquefied petroleum gas (Shandong) market is dominated by narrow margin consolidation. At the beginning of the week, the rise of crude oil boosted the market and the price of liquefied petroleum gas increased slightly. However, the increase of crude oil is not big enough to boost the liquefied petroleum gas market. In addition, the liquefied petroleum gas shipment continued to be poor last weekend, the inventory of the manufacturers increased gradually, the pressure increased, and the downstream entry enthusiasm was general. Purchasing is needed, and the production and marketing of the manufacturer are unbalanced. Late week price slightly concessions, price down, mainly shipments. Market turnover has improved significantly, and low-level shipments are relatively smooth.

Industry: According to the business association price monitoring, in the 33rd week of 2019 (8.19-8.23), there were six kinds of commodities rising in the energy sector, the first three of which were liquefied natural gas (2.89%), Brent crude oil (2.18%) and MTBE (1.77%). There are seven kinds of commodities that have declined annually. The first three products are methanol (-2.34%), petroleum coke (-0.81%) and gasoline (-0.67%). This week’s average rise and fall was 0.24%.

3. Future Market Forecast

Liquefied gas analysts of business associations believe that the influencing factors are still in the off-season, terminal demand has not improved significantly, and the liquefied gas market has insufficient momentum to rise, but the traditional peak season of “gold SEP, silver OCT” is coming, which has certain support for the market mentality, and is expected to stabilize and then rise in the later period.