Group 1 - The LPG supply in the US and the Middle East is expected to increase by 2026, which, combined with weak downstream petrochemical demand, will exert downward pressure on LPG prices [1] - The average CFR Northeast Asia price for propane is projected to drop significantly to $547.92 per ton in 2025, down from $628.23 per ton in 2024 [1] - The LPG market is currently buyer-dominated, and the supply-demand balance is expected to improve in 2026 compared to 2025, although potential demand collapse could lead to significant market volatility [1][3] Group 2 - The new supply in the LPG market is likely to come primarily from the US Enterprise Products Partners, with expectations of lower propane spot prices, especially in the second half of 2026 [2] - Enterprise Products Partners has recently launched a 550-mile pipeline with a capacity of 600,000 barrels per day and plans to commission additional gas processing plants in 2026 [2] - The impact of new PDH facilities on LPG demand is expected to be limited, as the scale of new capacity is not as significant as in previous years, leading to reduced expectations for demand support [2] Group 3 - The global petrochemical market is anticipated to remain sluggish in 2026, with ongoing pressure from new capacity and slow demand recovery [3] - Geopolitical factors, weather changes, and shipping rate fluctuations are expected to influence the Asian LPG market in 2026 [3] - The current lack of long-term contract orders may lead to increased activity in the spot market, with prices potentially fluctuating rapidly based on supply and demand changes [3]

Industry Investment Rating - The unilateral strategy is to be weak with oscillations, and there are no specific strategies for inter - period, cross - variety, spot - futures, and options [2] Core View - Although the recent crude oil price is strong, it has limited impact on the LPG market. The LPG prices at home and abroad are relatively flat, and the market driving force is weak. The overall supply - demand pattern of LPG remains relatively loose, especially with abundant overseas supply. The global LPG market will remain in a state of oversupply [1] Market Analysis - On July 15th, the regional prices were as follows: Shandong market 4570 - 4630 yuan/ton; Northeast market 4190 - 4380 yuan/ton; North China market 4425 - 4630 yuan/ton; East China market 4380 - 4650 yuan/ton; Yangtze River market 4520 - 4610 yuan/ton; Northwest market 3900 - 4250 yuan/ton; South China market 4570 - 4700 yuan/ton [1] - In the first half of August 2025, the CIF prices of frozen LPG in East China were 572 dollars/ton for propane (up 5 dollars/ton) and 553 dollars/ton for butane (up 6 dollars/ton), equivalent to 4502 yuan/ton for propane (up 42 yuan/ton) and 4353 yuan/ton for butane (up 50 yuan/ton) in RMB. In South China, the CIF prices were 569 dollars/ton for propane (up 2 dollars/ton) and 550 dollars/ton for butane (up 3 dollars/ton), equivalent to 4479 yuan/ton for propane (up 19 yuan/ton) and 4329 yuan/ton for butane (up 26 yuan/ton) in RMB [1] - US LPG exports remain at a high level. Based on shipping schedule data, the shipment volume in July is expected to be 6.12 million tons, a month - on - month increase of 480,000 tons and a year - on - year increase of 810,000 tons. After the expansion projects of export terminals are put into operation, the constraints on US LPG exports in the second half of the year will disappear, and the growth space will be further opened, which will suppress the prices in regions such as FEI [1] Graph Information - There are various graphs showing the spot prices of civil LPG and ether - after carbon four in different regions, as well as the closing prices, month - on - month spreads, trading volumes, and open interests of PG futures contracts [3]