After entering July, the overall trend of Shandong’s civil gas market showed a volatile rise. Since the 8th, there have been many positive factors in the market, and the price has been rising one after another. According to the data monitoring of business agency, the average price of liquefied gas in Shandong civil market was 4346.67 yuan / ton on July 8 and 4466.67 yuan / ton on July 22, with an increase of 2.76% and 3.24% compared with July 1.
As of July 22, the mainstream prices of LPG in various regions of China are as follows:
Specifications type of shipping region Mainstream quotation
Civil gas Motor transport North China 4320-4470 yuan / ton
Civil gas Motor transport East China 4300-4550 yuan / ton
Civil gas Motor transport South China 4400-4500 yuan / ton
Civil gas Motor transport Shandong Province 4400-4680 yuan / ton
Recently, the trend of domestic LPG market is relatively strong. Shandong civil gas market began to enter the upward channel on July 8, during which there are many favorable factors. One is the international crude oil market. Although the international crude oil fluctuates frequently recently, it is still at a high level as a whole. In addition, the strong external price has brought some support to the LPG market. Secondly, many plants in Shandong Province were overhauled, and the supply of Shandong market declined. For the overhaul of some units of Jincheng Petrochemical Company, no external quotation was made. The decrease of supply has brought obvious support to the market. Coupled with the expected rise of CP in August, a positive market attitude is the third. At present, the mainstream transaction price of Shandong is around 4550-4650 yuan / ton, the overall transaction atmosphere of the market is mild, the downstream buyers are active in entering the market, the manufacturers are smooth in shipping, the mentality is firm, and the price has been pushed up. However, due to the flat shipment situation in South China market, the current price has fallen.
LPG futures market rose significantly, which brought certain benefits to the spot market. On July 22, the opening price of 2109 LPG futures contract was 4827, the highest price was 4978, the lowest price was 4827, the closing price was 4963, the former settlement price was 4825, the settlement price was 4909, up 138, or 2.86%, the trading volume was 84467, the position was 70785, and the daily increase was 4923（ Quotation unit: yuan / ton)
In the international crude oil market, on July 21, the international oil price rose sharply. The settlement price of the main contract in the WTI crude oil futures market of the United States was US $70.32/barrel, up 3.12 US dollars or 4.64%. The settlement price of the main contract in the Brent crude oil futures market was US $72.23/barrel, up 2.88 US dollars or 4.20%. Although US commercial crude oil inventories increased for the first time in eight weeks, market risk index preference improved and oil prices rebounded sharply.
At present, although the market is in the traditional off-season and the terminal demand is weak, the low supply in Shandong has brought obvious support to the market, the downstream buying mentality is more positive, the manufacturer’s mentality is strong, and the international crude oil is at a high level, with obvious market favorable support. It is expected that the market price of Shandong civil gas will be strong in the short term.