The LPG market in Shandong began to decline continuously in mid March. Last week (3.21-3.25), it was not easy to expect the market rise, but blocked again. According to the data monitoring of SunSirs, the average price of LPG in Shandong market was 3,800.00 RMB/ ton on March 21 and 3,843.33 RMB/ ton on March 25, with an increase of 1.14% last week and 3.41% compared with March 1.
Last week, the LPG civil market ushered in a rebound. At the beginning of the week, the rise of international crude oil brought some support to the market. Under the buying mentality of the downstream, they entered the market actively, the market transaction atmosphere was good, and the manufacturers' quotations continued to push up. At present, the market supply in Shandong is relatively sufficient. On the demand side, the current weather temperature is gradually increasing, and the demand is decreasing. In the international market, near the end of the month, Saudi Aramco's CP price is about to come out, but the CP is expected to fall in April, bringing some bad news to the market.
Overall, the market demand improved last week, and the overall focus of Shandong civil gas market has moved up. However, the international crude oil market fluctuates frequently and has a large range, which brings limited benefits to the LPG market. Moreover, the expected decline of CP price in April brings bad news to the market. After the completion of downstream replenishment, the market withdraws from the market to wait and see, and obviously lacks confidence in the future market. As the weather continues to warm up, market demand is expected to decline. At present, due to many negative factors in the market, China Shandong LPG market is to fall but difficult to rise in the future.
