Podcast - China LPG market weekly takeaway: prices slide as crude drops and buyers hold back

China's LPG prices slid in the week of November 6 to November 12, as falling crude and cautious buyers weighed on the domestic market.

Residential LPG ended the week at around 7,665 yuan per tonne, down 435 yuan from the previous Thursday, while PDH margins in East China dropped about 60 percent. Import arrivals fell roughly 40 percent, yet producers' inventories still built up. A further decline of 100 to 200 yuan per tonne is expected in the upcoming week.

Key takeaways:

• Crude set the tone. Brent averaged just under 95 US dollars a barrel, about 12 dollars lower, as the US played down fresh strikes on Iran and Qatar and other mediators kept pushing for talks. Propane CFR South China averaged about 1,045 US dollars per tonne, roughly 100 US dollars per tonne lower than the week before.
• The north fell hardest. Domestic prices in Shandong and North China broke below 7,000 yuan per tonne, while the south held up on high import costs and low port stocks. Margins narrowed along the chain, with PDH margins in East China down to roughly 470 yuan per tonne.
• Supply is set to outgrow demand in the upcoming week, with import arrivals expected to recover to around 700,000 tonnes and port stocks to build. Chemical demand should improve while fuel demand stays flat, and domestic prices are forecast to fall by 100 to 200 yuan per tonne.
  
  

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

For deeper insight into China's LPG market, including market intelligence, pricing trends, supply-demand fundamentals, and industry developments, visit mysteel.net. 
Listen to the full episode on Spotify now: https://open.spotify.com/episode/6yY3GrpG1WBa9ylObnLNot?si=YSzibAEpSTakq8UbcK36eg&nd=1&dlsi=4548eeccc22c45b2