The domestic LNG price rose by 3% after the holiday

With a significant drop in temperature in my country, domestic natural gas demand has gradually increased, so the price of liquefied natural gas (LNG) has also risen significantly. According to the latest data from the Business Society on Saturday (October 10), in September this year, domestic LNG prices have risen by 9.28%.

 After the National Day holiday, LNG prices are still rising. Data shows that on October 9, the average domestic LNG price was 2706.67 CNY/ton, an increase of nearly 3% compared to before the holiday, and an increase of 12.47% compared with the beginning of September, which was an increase of nearly 15% from the previous month. However, despite the recent strong rise, the current price is still down 7.31% compared to the same period last year.

According to the data monitoring of the business agency, as of October 9, the price of LNG in many parts of the country has gradually increased. The average price of LNG in the five northern provinces, including Inner Mongolia, Shaanxi, Shanxi, Xinjiang and Ningxia, is above 2720 CNY/ton. In the national average price, the average price in Xinjiang has reached 3120 yuan.

Like most commodities, natural gas prices are mainly determined by market supply and demand. The recent gradual increase in domestic LNG prices are mainly due to the following three reasons.

First, the domestic weather has turned cooler, the off-season of demand has passed, and the natural gas market has begun to usher in the peak season. It is reported that the northern cities have gradually entered the winter heating period, so the demand for LNG has risen sharply, thereby supporting its price increase. The higher prices in the 5 northern provinces may be related to the earlier heating period.

Second, due to the previous continuous price cuts, the inventory pressure is now less, so the shipment situation has been improved. According to reports, as early as before the National Day, downstream replenishment has already started, the purchasing enthusiasm has also increased, and the delivery of liquid plants has been smoother, so the price of LNG has risen before the holiday.

Third, after the National Day holiday, road transportation has resumed smoothly. Therefore, the downstream has begun to replenish more goods, and the shipment of LNG has been smoother. At the same time, it also indicates that the demand in the market has increased significantly, so the price of the futures market has further risen.

However, the report also pointed out that although the price of LNG futures rose by nearly 3% on the first day after the holiday, the downstream is still on the sidelines, so the market is temporarily stable. Analysts pointed out that as the north enters the heating period, the domestic demand for LNG will continue to rise in the future, so its price is expected to rise steadily.