China's liquefied petroleum gas production increased by 6.4% in May, reaching 4.52 million tons

China's liquefied petroleum gas production increased by 6.4% in May, reaching 4.52 million tons.

On June 14th, the China Liquefied Petroleum Gas (LPG) Comprehensive Import CIF Price Index released by the Global Trade Monitoring and Analysis Center of the General Administration of Customs and the Shanghai Petroleum and Natural Gas Trading Center showed that from June 5th to June 11th, the China Liquefied Propane Comprehensive Import CIF Price Index was 105.53 points, a month on month decrease of 5.94% and a year-on-year decrease of 29.82%; The comprehensive import landed price index of liquefied butane in China was 96.95 points, a decrease of 4.17% month on month and 34.41% year-on-year.

In terms of international pricing benchmarks, according to data released by Saudi Aramco's CP in June 2023; The contract price (CP) of propane in June was $450/ton, a decrease of $105 compared to the previous month, a decrease of 18.92% compared to the same period last year, and a decrease of 40% compared to the same period last year; The contract price (CP) of butane in June was $440/ton, a decrease of $115/ton compared to the previous month, a decrease of 20.72% month on month, and a decrease of 41.33% compared to the same period last year; The significant reduction in Saudi Arabia's CP in June may affect the current domestic and international LPG market price levels.

In the domestic market, supply has increased, demand has increased, and the market trading atmosphere has improved. From the supply side, last week, the actual arrival volume of domestic imported LPG was 890900 tons, and the arrival cargo resources were mainly in East China; The domestic gas production mainly comes from local refineries, and the domestic LPG production increased month on month during the week compared to the previous week; Overall, the total domestic LPG supply during the week increased compared to the previous week, resulting in a relaxation of supply. From the demand side perspective, the demand for civilian fuel combustion has decreased; Industrial demand has increased, specifically in the field of chemical deep processing: in the field of propane deep processing, the operating rate of PDH devices has increased, and the demand for propane chemical industry has increased; In the field of butane deep processing, the MTBE operating rate has increased, the alkylation operating rate has increased, and the demand for butane chemical industry has increased. Overall, the amount of resources arriving at the port last week met expectations; The domestic gas volume has increased compared to the previous week, and the overall market supply has increased compared to the previous week; The demand for civilian gas has decreased; Industrial demand has increased, propane chemical demand has increased, and butane chemical demand has increased. Last week, there were fluctuations in the prices of various products in the domestic liquefied gas industry chain.