Liquefied petroleum gas is a colorless volatile liquid obtained by pressurizing, cooling and liquefying natural gas or oil in refinery. Spontaneous combustion is easy. When its content in the air reaches a certain concentration range, it will explode when it meets an open flame. So be sure to prevent leakage when using it.
Liquefied petroleum gas, like oil and natural gas, is a fossil fuel. Liquefied gas is a mixture of various low-boiling gases in the process of petroleum refining. The main components are butene, propylene, butane and propane. Although most energy enterprises do not specialize in producing liquefied petroleum gas, it contains a certain output because it is a by-product of other fuel refining processes. Liquefied petroleum gas as fuel has been widely used in people's lives because of its high calorific value, smokeless, carbon residue-free and convenient operation and use. In addition, liquefied petroleum gas is also used for cutting metal, baking agricultural products and baking industrial furnaces.
Influencing factors of liquefied petroleum gas futures price
1, international crude oil price impact
Part of China's LPG comes from by-products of refineries, so oil price fluctuation has a direct impact on LPG price fluctuation. Because the proportion of liquefied petroleum gas in crude oil processing is stable, from the perspective of refining process, the LPG output of refineries is generally 2%-5% of crude oil input, and the correlation between crude oil and LPG prices is obvious.
2. Imported LPG affects domestic LPG pricing.
Guangdong and other southeast coastal areas are the main consumption areas of liquefied petroleum gas in China, but due to the small supply in these areas, the dependence on foreign countries is obviously higher than other areas in China. At present, China's international pricing power is weak, so China's import price is mainly influenced by argus' Far East Price Index (FEI) and Saudi Arabia's contract price (CP).
3. Seasonal factors affect the price of liquefied petroleum gas.
Affected by seasonal demand changes, the price of liquefied petroleum gas changes. Generally, the price of liquefied petroleum gas rises gradually from the third quarter of the current year to the following year 1 month. After March, the temperature gradually rose, the demand for LPG dropped significantly, and the price dropped. Therefore, the periodic change of temperature causes the change of terminal demand, and then affects and reflects the trend of gas price. In addition, changes in the supply and demand of festivals may also have short-term effects.
4. Alternative energy sources affect the price of liquefied petroleum gas.
It is generally believed that liquefied petroleum gas and natural gas are interdependent and complementary. Liquefied petroleum gas (LPG) and liquefied natural gas (LNG), which also burn fuel, have a substitution relationship, so there is a certain correlation in price.
5. Domestic policies and market changes affect the price of LPG.
Since 20 16, the national development and reform commission has cancelled the upper limit of gas ex-factory price, and the price limit of liquefied petroleum gas is no longer linked to the retail price limit of refined oil, and the domestic retail market of liquefied petroleum gas has been fully liberalized. Usually, retailers will set prices according to competitors' prices, inventory and market demand.