Report Summary 1. Report Industry Investment Rating - Not provided in the given content 2. Core View of the Report - The PG market is expected to continue its weak and volatile trend due to increased arrivals, port inventory accumulation, weak domestic combustion demand, high port inventory pressure, and a weak international fundamental situation [1] 3. Summary by Relevant Catalogs Market Data - **Price Changes**: From July 28 to August 1, the prices of South China LPG, East China LPG, and Shandong LPG decreased by 30, 3, and 10 respectively; propane CFR South China remained unchanged; MB propane spot decreased by 3; CP forecast contract price decreased by 3; Shandong ether - post - carbon four decreased by 90; Shandong alkylated oil decreased by 20; paper import profit decreased by 26; and the main basis increased by 8 [1] - **Market Conditions**: The PG futures market was weak. The spot price fluctuated and declined, with the cheapest deliverable being South China civil LPG at 4400 yuan/ton. The main contract shifted to the 09 contract, and the basis strengthened to 445 (+79). The inter - month reverse spread continued to strengthen, with the 9 - 10 month spread at - 439 (-18). The number of registered warrants was 9759 lots (-45), with 20 lots decreased at Qingdao Yunda and 25 lots decreased at Ningbo Baidinian [1] International Market - **Price Adjustments**: The August CP official price was lowered. Propane was at 520 US dollars/ton, a decrease of 55 US dollars/ton from the previous month; butane was at 490 US dollars/ton, also a decrease of 55 US dollars/ton from the previous month. The estimated landed cost of propane was around 4327 yuan/ton, and that of butane was around 4090 yuan/ton [1] - **Regional Spreads**: PG - CP reached 30 (-13), FEI - MB reached 159 (+3), FEI - CP reached 5 (+0.5); the US - Asia arbitrage window opened; the CP propane landed discount fluctuated. FEI - MOPJ first widened and then narrowed, with the latest at - 53 (-5) [1] Fundamental Situation - **Inventory and Supply**: Arrivals increased, leading to port inventory accumulation; factory inventory decreased slightly; the commodity volume increased slightly [1] - **Downstream Profits**: The spot profit of PDH to PP fluctuated, and the paper profit continued to improve; the profits of other downstream devices decreased. The PDH operating rate was 72.63% (-0.5 pct), with Liaoning Jinfa resuming production and Tianjin Bohua shutting down due to a fault. Tianjin Bohua and Jiangsu Ruiheng are expected to restart next week [1]