2020 Northwest China LPG Prices Fluctuated Frequently
As seen from the chart above, there was obvious seasonality in LPG market in Northwest China. In 2020, the overall market seasonality was inconspicuous, so it exerted limited impacts on the LPG market in Northwest China. According to SCI’s statistics, LPG prices in Northwest China fluctuated within a wide range in 2020.
From January to February 2020, the demand for LPG weakened somewhat due to the public health event. Accordingly, the inventory at upstream refineries went up, and LPG prices crashed. In H1 February, LPG prices declined to RMB 2,700/mt. In H2 February, with the market trading improvement, LPG prices in Northwest China recovered to RMB 3,600/mt.
From March to June, LPG prices in Northwest China fluctuated downward. Influenced by the global public health event, most market participants adopted bearish attitudes to the international LPG demand, so the international LPG prices declined greatly. Accordingly, LPG market in Northwest China also underperformed. In H2 June, LPG prices at some refineries in Northwest China even dropped below RMB 2,000/mt.
