1、 Price trend

According to the data monitoring of the business community, the average price of domestic LNG on October 1 was 6834 yuan/ton, and the average price of domestic LNG on October 27 was 5710 yuan/ton. Domestic LNG prices fell 16.45% this month.

2、 Market analysis

It can be seen from the weekly rise and fall from August 1, 2022 to October 23, 2022 that the domestic LNG industry has seen a lot of ups and downs during the cycle. The maximum increase in the cycle was 10.25% in the week of September 12, and the maximum decrease was -7.43% in the week of August 22. There was a large drop in October, with the largest drop of -6.19% in the week of October 10.

According to the data monitored by the business community, the average price of domestic LNG on October 27 was 5710 yuan/ton, 1124 yuan/ton lower than 6834 yuan/ton at the beginning of the month, 16.45% lower, 18.85% lower than the same period last year.

The domestic LNG market price fell sharply in October, with a decline of 16.45% in the month. During the National Day, the price of liquefied natural gas was lowered due to transportation obstacles. After the National Day holiday, the transportation of dangerous chemicals returned to normal, and downstream replenishment increased. The price of LNG continued to rise under the favorable situation of demand follow-up. In the middle of October, the domestic LNG price began to fall, and the demand for downstream replenishment decreased. The epidemic situation has a great impact on upstream shipment, and the market has fallen back. As the impact of the domestic epidemic weakened, the traffic began to recover smoothly, and LNG stopped falling and stabilized. In late October, due to the strengthening of epidemic control, poor traffic, sufficient on-site supply and insufficient downstream demand, liquid plants reduced prices one after another, resulting in a strong bearish sentiment in the market. As of October 27, 5700-6200 yuan/ton in Inner Mongolia, 5890-6200 yuan/ton in Shaanxi, 6000-6550 yuan/ton in Shanxi, 6000 yuan/ton in Ningxia, 6200-7100 yuan/ton in Hebei and 6550-6900 yuan/ton in Henan.

3、 Future market forecast

LNG analysts from the business community believe that the domestic LNG market fell sharply in October, and the market continued to decline. At present, the market trading and investment are flat, the traffic is blocked under the control of the epidemic situation, and the market supply exceeds the demand. It is expected that domestic LNG prices will continue to fall mainly in the short term under the negative factors.