Report Overview - Report Title: C3 Industry Chain Weekly Report - Report Date: January 18, 2026 - Report Author: Chen Xinchao, Zhao Shucen Industry Investment Rating - Not provided in the report Core Views LPG Part - Short - term supply is tight, and attention should be paid to the realization of downward drivers. Although the supply in the Middle East remains tight, there is still supply pressure after the impact of fog at US terminals weakens. With low chemical profits and many PDH maintenance plans in Q1, the downward drive is significant. [3][4] - The lowest deliverable product may switch as the spread between Shandong civil and ether - post C4 widens. Near the cancellation month, attention should be paid to the change in the number of warehouse receipts. [4] Propylene Part - After the rapid rise of spot prices, the upward drive weakens. The tight - balance pattern of propylene is difficult to change next week. Although the downstream's enthusiasm for chasing high - priced propylene may weaken, the rigid demand for production provides strong support, so propylene is expected to remain in an upward - biased pattern. [6][7] Summary by Directory LPG Part Price & Spread - Domestic LPG spot prices maintain a moderately strong and fluctuating trend. The lowest deliverable product is still Shandong civil gas, and the spread between civil and ether - post C4 has widened to 100 yuan/ton. [10][13] - Propane prices maintain a moderately strong trend, with the FEI index and related import costs showing an upward trend. The spot premium further increases, and the freight rate remains stable, while the arbitrage window from the US Gulf to the Far East expands. [10][21][27] Supply - US LPG shipments to Asia are flat month - on - month, while Middle East shipments are tight. The total LPG commodity volume is 51.9 tons (+0.1%), with 21.7 tons of civil gas (-0.1%) and 16.7 tons of ether - post C4 (-0.1%). Propane imports decrease by 0.2 tons month - on - month. [39][43][49][63] Demand & Inventory - PDH operating rates decline, while MTBE operating rates remain flat. LPG refinery inventories are at a neutral level compared to the same period in 2025, with a slight de - stocking of civil gas refinery inventories. Port inventories in East China, Shandong, and South China decline month - on - month, while Fujian accumulates inventory due to concentrated arrivals. [80][82][100] Propylene Part Price & Spread - The cost - end propane is firm, propylene prices rise strongly, and PDH profits fluctuate and recover. Downstream prices continue to rise, but the spread between propylene and powder returns to the loss range. International and domestic propylene prices rise month - on - month, and the import window is partially opened. [115][117][118] Balance Sheet - PDH and MTO operating rates decline month - on - month, and the powder profit is compressed, leading to a decline in its operating rate. The supply is expected to tighten gradually as the Jinneng PDH and Lianyungang Shenghong MTO are expected to undergo maintenance. The demand is supported by the rigid procurement of PP powder, and the situation is expected to improve in January. [139][159] Supply - The overall upstream operating rate of propylene is 75.2% (-0.7%). Refinery operating rates remain stable, while cracking and PDH operating rates decline. MTO operating rates also decline, but profits are recovering. [170][190][195] - The import volume of propylene increases by 0.96 tons (7.21%) month - on - month, and the import profit shows an upward trend. [204] Demand - The operating rates of PP, PP powder, PO, and acrylonitrile decline, while the operating rates of n - butanol, octanol, phenol - acetone, and ECH increase. The profit performance of PP shows process differentiation, and the profit of PP powder returns to the loss range. PO prices rise strongly, and the company's profitability improves significantly. [211][231][243][273] Downstream Inventory - PP production enterprise inventory, trader inventory, and powder inventory all decline. The inventory of acrylonitrile plants and ports shows different changes, and the inventory of phenol and acetone in Jiangyin Port declines. [298][299][300]