Report Industry Investment Rating - Not provided in the given content Core Viewpoints - The previous rapid decline of PG accelerated the release of weak expectations, and currently, the marginal improvement of the fundamentals and relative strength compared to crude oil indicate that this expectation has been well realized. The market is facing a high level of warehouse receipts and maintaining a high basis, with the downward driving force fading but limited rebound space. The follow - up should focus on the further repair process of the US cargo flow and the signal of freight rate decline to confirm the market bottoming. The market mainline this year still needs to pay attention to the continuous supply increase from North America and the Middle East. Currently, the negative factors are being released rapidly, and the market may show a near - strong and far - weak pattern during the logistics repair process [11] Summary by Related Content China's LPG Import Structure Changes - In the previous trade war, US propane exited the Chinese market from 2018 - 2020 due to a 20% tariff. In 2019, non - US and non - Middle East sources grew the fastest, filling the nearly 20% share of US sources. After that, the share of US LPG in China's imports continued to rise, reaching 50.9% in 2024, the highest in history [1] - In 2025, due to trade conflicts, the share of US LPG in China's imports decreased. In March, it dropped from nearly 50% to 38.7%. After the full - scale counter - tariff on US goods in April, the US LPG may lose its cost advantage. In June, the share of US LPG dropped to 12%, the lowest in recent years. It is expected to rise to 35% - 40% in the short term, and the distortion of trade flow will start to ease in the third quarter [3][4] - The LPG import volume increased after March due to the "rush - to - import" behavior of importers. In June, the procurement volume and the US share dropped rapidly. In July, the total import volume is expected to rise again, and the US share is expected to further rise to 36% in August [4] US LPG Export Changes - Since 2022, the Northeast Asian market, centered on China, has become the main part of US LPG exports. In 2024, Northeast Asia accounted for 50.7% of US LPG exports, with China being the largest export destination, accounting for 15.6% [8] - In 2025, after the sharp decline in exports to China, the exports to Northeast Asia and Europe remained stable. The US redirected its exports to South Asia and Southeast Asia, and the export share to South Asia and Southeast Asia is expected to increase from 9.4% in the first quarter to 20.4% in the second quarter [8] Market Fundamentals and Outlook - The domestic chemical production progress has slowed down, while the US natural gas and OPEC have entered a strong production - increasing cycle this year. The buyer's bargaining power has increased, and the trade flow has been reshaped with the increase of trade on the North America - South Asia route [10] - The EIA slightly increased the forecast of natural gas and associated propane production, but the further production - increasing space this year is limited due to the weakening gas price. The oversupply pressure still exists, but the negative pressure may be marginally reduced [11] - In August, the Middle East CP dropped significantly for the first time in a year, indicating the Middle East countries' attitude to seize the market under oversupply pressure. The previously high PG/crude oil ratio has been continuously repaired to a historical neutral position [11]