Imported liquefied gas rises sharply to push up domestic market

On the 29th, the wholesale price of Guangzhou Petrochemical Gas rose by 100 yuan from the previous day to 6,750 yuan/ton, which was an increase of 450 yuan from 6,300 yuan/ton for the settlement price of Guangbo Petrochemical at the weekend (24th). The industry believes that due to the impact of rising imports of liquefied petroleum gas, domestic liquefied petroleum gas market has basically completed preheating, the price into the upstream channel, and in about half a month to conduct to the terminal.



Zhuchuang Information Liquefied gas analyst Jiang Cuihong analyzed that due to the maintenance plan of Qatar LNG plant, which directly affected the export of liquefied petroleum gas, last week began to worry that market sentiment in the Middle East reduced supply sentiment to push frozen goods to close, and South China's import costs were even lower. There has been an uptrend of 400 yuan/ton.

“At present, the price difference between domestically produced liquefied petroleum gas and imports has reached 400 yuan/ton. From this point of view, domestic liquefied petroleum gas still has a lot of room for growth,” said Jiang Cuihong.

Saudi Aramco's CP refers to Saudi Arabia's liquefied gas contract price. Because Saudi Arabia's liquefied gas exports account for about one-fourth of the world's total exports, the liquefied gas exports of many countries and regions are based on CP's pricing as a trade export. It has a vane effect on the global liquefied gas price trend. The reporter learned from the Guangdong Oil and Gas Chamber of Commerce that before September, CP had been at a low of 500 to 600 US dollars for five consecutive months.

In September, the CP announced that the price of propane was as high as US$970/ton and the price of butane was US$930/ton, both of which were only US$775/ton in August. "This time, the domestic importer's mentality has been greatly boosted, pushing up the sentiment, basically saying that the price has been bottomed out, began to enter the upstream channel, and conducted to the terminal in about half a month." Xu Meiyan, market analyst at the gas division of the Guangdong Oil and Gas Merchants Association, said.

On the demand side, “in the second half of the year, as the weather in southern China gradually turns cooler, residents’ heating needs increase, and terminal demand will also slowly increase. This has a stronger supporting role for the entire domestic LPG market. The bottom line of market turnover is gradually increasing.” Xu Meiyan analyzed.