China LPG Market Weekly Take-Away: Supply Recovers Faster Than Demand

Despite refinery maintenance leaving the market in a slight supply deficit, prices continued to fall as traders increasingly priced in a surge of lower-cost imports. With geopolitical risk premiums fading and July Saudi CP settling well below June levels, expectations of stronger import arrivals have shifted market sentiment from supply disruption concerns to an increasingly oversupplied market.

Key takeaways:

• Lower import costs and rising import arrivals are exerting greater influence on prices than tighter domestic supply.
• Market sentiment has shifted from concerns over supply disruption to expectations of stronger import availability in the coming weeks.
• Petrochemical demand is gradually improving, but the recovery remains too slow to absorb the expected increase in imports.
• China's domestic LPG prices are expected to remain under downward pressure, with a further decline of around 50 yuan/tonne likely over the coming week.

For the full analysis and data behind today's discussion, contact us at inquiries@mysteel.com for a trial read of the latest China LPG Market Weekly Report by Mysteel OilChem.

For deeper insight into China and Asia LPG markets, including trade flows, PDH demand recovery, supply security, and the growing impact of geopolitics on pricing, visit our Energy Page on this website.

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