In September, the domestic liquefied gas market was dominated by weakness. The Shandong civil gas market was consolidated in a narrow range in the first half of the month and fell significantly in the second half. According to the data monitoring of the business community, the average price of liquefied gas in the civil Shandong market was 5930.00 yuan/ton on September 1 and 5560.00 yuan/ton on September 26, with a monthly drop of 6.24%, up 6.38% over the same period last year.

As of September 26, the mainstream prices of liquefied gas in various regions in China are as follows:

Region, mainstream quotation

North China, 5450-5650 yuan/ton

East China, 5200-5500 yuan/ton

Northeast China, 5350-5450 yuan/ton

Shandong, 5500-5650 yuan/ton

Although it ushered in the traditional peak season, in September this year, the domestic liquefied gas market as a whole was dominated by weaknesses. The Shandong civil gas market showed a narrow consolidation trend in the first half of the month, and fell continuously in the second half of the month. In September, the overall decline was more obvious, showing a weak market in the peak season.

In the first half of the month (September 1-15), the Shandong civil gas market fell by 0.24%. There was a certain demand for replenishment in the downstream before and after the Mid Autumn Festival holiday, and the enthusiasm for entering the market was fair. The market trading atmosphere was mild, and the manufacturers had a firm mentality. Most of them adjusted prices in a narrow range according to their own conditions. In the second half of the month (September 15-26), the decline of Shandong civil gas market deepened. During the period, the international crude oil mainly declined, bringing obvious negative effects on the cost side. The improvement of terminal demand is limited, and the downstream is cautious, maintaining the replenishment on demand, and the manufacturers continue to yield profits, mainly shipping. Near the end of the month, the price of Shandong civil gas fell to a relatively low level, the market trading atmosphere improved, and the price gradually recovered to a stable level, with individual compensation.

In September, the liquefied gas futures market was also weak, mainly in the second half of the month. On September 26, the opening price of LPG futures contract 2211 was 5045, the highest price was 5189, the lowest price was 5020, the closing price was 5024, the previous settlement price was 5208, the settlement price was 5111, down 184, the trading volume was 141212, the position was 81078, and the daily position increased 4905. (Quotation unit: yuan/ton)

In general, in terms of cost, international crude oil continued to decline, which was bad for the market. In terms of demand, the downstream market entry enthusiasm is average, and the terminal demand needs to be improved. On the supply side, the upstream inventory has eased. With the price adjusted to a relatively low level, the decline space is relatively limited. It is expected that the price of Shandong civil gas market will continue to consolidate in the short term, and may rise in October.