Group 1: Report Industry Investment Rating - No information provided Group 2: Report's Core View - The fundamentals of the LPG industry are still weak overall, with expected overall growth in supply, some support for Shandong's chemical demand, but weak combustion demand [1] Group 3: Summary by Relevant Catalogs Daily Data Changes - On June 3, 2025, compared with the previous day, in the civil gas sector, prices in Shandong increased by 30 to 4580, in East China increased by 3 to 4508, and in South China decreased by 30 to 4680; ether - post - carbon four increased by 70 to 4710; the cheapest deliverable was East China civil gas at 4508. FEI import cost rose, CP import cost fell, PP rose slightly, FEI - made PP profit increased, and CP - made PP profit decreased. The PG futures price rose significantly, mainly driven by oil prices. The basis of the 07 contract decreased by 77 to 436; the 07 - 09 spread increased by 14 to 164. The US - to - Far - East arbitrage window opened [1] Weekly View - Civil gas prices showed regional differentiation, with prices rising in Shandong, falling in South China, and remaining stable in East China. Ether - post - C4 prices fell, and the price of the cheapest deliverable (East China civil gas) was 4505 yuan/ton. The PG futures price fluctuated upward from Monday to Thursday and dropped significantly on Friday due to falling oil prices. The basis of the 07 contract strengthened, and the 07 - 08 and 07 - 09 spreads also strengthened. In the overseas market, FEI and MB prices fell slightly, while CP prices rose slightly; the oil - gas ratios in North Asia and the US fluctuated, and the oil - gas ratio in the Middle East declined. The official June CP price decreased, with propane and butane at 600/570 (-10/-20) US dollars. Fundamentally, port arrivals increased slightly, chemical demand improved, but civil gas sales were sluggish, leading to overall port inventory reduction; refinery inventories increased. In terms of supply, the commercial volume increased by 2.46%, and further increases are expected; at the same time, expected arrivals are expected to decrease. In terms of demand, the PDH operating rate rebounded to 63.26% (+2.11 pct), production margins declined, and the processing profits of FEI and CP were similar. It is expected that the PDH operating rate will continue to rise next week. The operating rate and commercial volume of alkylation increased, and profitability rebounded significantly. It is expected that the operating rate will continue to rise next week. MTBE prices first rose and then fell, and MTBE production remained basically flat. The profits of gas - fractionation etherification and isomerization etherification increased significantly. It is expected that MTBE supply will increase, and there may be some restocking demand after the Dragon Boat Festival, which will support C4 demand. In addition, as the temperature rises, combustion demand is expected to decline [1]

Group 1: Report Industry Investment Rating - No information provided Group 2: Core Viewpoints - The fundamentals of the LPG market are weak, and the short - term futures market is expected to fluctuate weakly [1] Group 3: Summary by Relevant Content Daily Changes - On Tuesday, for civil gas, prices in Shandong dropped by 20 to 4700, in East China by 2 to 4931, and remained stable in South China at 5020; for imported gas, prices in East China dropped by 15 to 5090, and in South China by 10 to 5080; ether - post carbon four dropped by 20 to 4690, with the lowest price being Shandong civil gas at 4700. Under the weak fundamental situation, the PG futures market fluctuated downward, the basis of the 06 contract strengthened to 405, and the 06 - 07 spread remained basically flat at 98. The US - to - Far - East arbitrage window opened [1] Weekly Situation - Last week, the domestic civil gas market was weak. Prices in South China rose and then fell; those in East China and Shandong fluctuated weakly; the center of ether - post carbon four shifted down significantly; the price of the cheapest deliverable (Shandong LPG) was 4800 yuan/ton. The futures market center moved down slightly; the 06 basis fluctuated; the 06 - 07 spread strengthened. Fundamentally, high arrivals led to obvious port inventory accumulation; post - holiday downstream restocking was average, and factory inventories increased slightly. The LPG commodity volume was 485,500 tons (-1.06%), and the outward supply is expected to be stable in the next three weeks; the PDH operating rate decreased to 59.59% (-2.76%) due to high import costs and poor downstream demand. The alkylation operating rate remained flat, production margins turned profitable, and the operating rate is expected to rise slightly. MTBE production decreased, and the profits of gas - separation etherification and isomerization etherification were poor [1] External Market - CP and FEI rose slightly, while MB remained flat. The internal - external price spread fluctuated, FEI - MB rose slightly, and FEI - CP and CP - MB changed little. Freight rates from the US Gulf to Japan and from the Middle East to the Far East rose slightly. US C3 inventory was basically flat, exports increased, and the arbitrage window to the Far East closed. OPEC+ reduced the production cut, and PG supply is expected to increase. The CP official price is expected to fall, and the propane - butane spread is expected to widen [1]