Report Industry Investment Rating - Not provided in the content Core Viewpoints - Last week, the futures price fluctuated greatly and the center moved up, mainly following the oil price. The basis fluctuated sharply, the 4 - 5 month spread was 132 (+5), and the number of warehouse receipts decreased by 1544 to 3108 lots. The cheapest deliverable was Shandong ether - post 5430 (+280). PDH spot profit strengthened significantly, port inventory ratio decreased by 5.5 pct to 35.05%, and the external supply of liquefied gas sample enterprises decreased by 1.8 to 54.4 tons. PDH operating rate decreased by 1.7 pct to 63.23. The subsequent core lies in when the Strait of Hormuz will resume passage, and short - term spot quotes mainly depend on international oil prices. There will probably be a shortage of goods in China in April, more serious in East and South China than in Shandong. The short - term futures price may still follow the oil price, and the month spread will run strongly [1] Summary by Relevant Catalogs Daily Quotes - On March 17, the PG2604 contract closed at 5849 (+10) at 3 pm, the 4 - 5 month spread was 113 (-27), and the number of warehouse receipts was 1800 (+0). The night session closed at 5848 (+21), and the 4 - 5 month spread was 83 (-30). Shandong civil gas was 5520 (+0), with a fair trading atmosphere. Shandong ether - post was 5450 (+30). Longkou Port propane was 7200 (+0), and Shandong propylene price was 8025 (+0). The East China market declined steadily, with the mainstream transaction price ranging from 5900 - 6280 yuan/ton, and the demand was average, with high - price refineries having difficulty in selling goods [1] Weekly Quotes - Last week, the futures price fluctuated greatly and the center moved up, mainly following the oil price. The basis was - 321 (+346), the 4 - 5 month spread was 132 (+5), and the number of warehouse receipts was 3108 (-1544). The cheapest deliverable was Shandong ether - post 5430 (+280). Shandong civil gas was 5550 (+610), and East China civil gas was 6159 (+1178). The FEI month spread was 84 US dollars (+27), the oil - gas price ratio declined oscillatingly. The internal and external PG - FEI c1 was 52.4 (-45). The CIF discount of South China CP propane was 402 (+30), and the FOB discounts of AFEI, US Gulf, and Middle East propane were 104.75 (+12.75), 200.6 (+41.7), and 0 (+0) respectively. The FEI - MOPJ spread was - 126 (-59). PDH spot profit strengthened significantly. The port inventory ratio was 35.05% (-5.5 pct), and the external supply of liquefied gas sample enterprises was 54.4 tons (-1.8). The PDH operating rate was 63.23 (-1.7 pct) [1]

Report Title LPG Liquefied Gas Weekly Report: Short - term Slight Support with Limited Upside Space [1] 1. Report Industry Investment Rating No information provided. 2. Core Viewpoints - This week, the main LPG contract changed to 2602. Due to the large previous decline, there was a slight repair, and the fundamentals this period also supported the price. The supply had no more increment, and although the combustion demand lacked highlights, the increase in PDH operation supported the price floor. With a small reduction in warehouse - receipt pressure, the 02 contract showed a strong trend this week. However, in the medium - to - long - term, the high costs of downstream chemical enterprises and the weak PP trend would cause PDH negative feedback to affect the operation [4]. - For trading strategies, maintain a strategy of shorting on rallies for single - side trading, and stay on the sidelines for arbitrage and options trading [5]. 3. Summary by Directory 3.1 Comprehensive Analysis and Trading Strategies - **Analysis**: The main LPG contract 2602 had a slight upward repair due to previous decline and fundamental support. Supply had no new increments, combustion demand was lackluster, but PDH operation increase supported the price. However, PDH negative feedback may occur in the long - term [4]. - **Strategies**: - Single - side: Maintain a strategy of shorting on rallies [5]. - Arbitrage: Stay on the sidelines [5]. - Options: Stay on the sidelines [5]. 3.2 Core Logic Analysis 3.2.1 Crude Oil - Geopolitical risks have many uncertainties. The expectation of a cease - fire in the Russia - Ukraine conflict drives oil prices down, while the tense situation in Venezuela drives them up. - From the supply - demand perspective, the surplus pressure keeps oil prices oscillating at this year's low, lacking the momentum for a significant short - term rebound. - In the medium - term, as the surplus pressure cannot be disproven, oil prices are expected to oscillate weakly [10]. 3.2.2 Supply - **Refinery Production**: The capacity utilization rate of domestic major crude oil refineries remained flat this week, at a relatively low level this year but normal for the historical period due to seasonal maintenance. With the end of autumn maintenance, the capacity utilization rate is expected to increase. The production utilization rate of domestic independent crude oil refineries slightly decreased by 0.01% to 64.33%, still at a high level this year and historically. The overall supply is expected to remain stable next week [13]. - **Imports**: The number of LPG ships arriving in China has rebounded. This week, the LPG arrival volume was 677,000 tons, a weekly decrease of 56,000 tons. The freight rates of three classic VLGC routes have increased slightly. Due to the high external prices, domestic PDH enterprises are in a theoretical loss, reducing their willingness to import significantly [16]. 3.2.3 Demand - The PDH operation rate increased by 2.13% to over 75%, at a high level this year. The MTBE operation rate slightly decreased by 0.85% but remained at a relatively high level. Although the combustion demand may be lackluster due to the expected warm winter, the chemical demand provides obvious support [19]. 3.2.4 Inventory - The LPG port inventory decreased this week due to a slight reduction in arrivals and an increase in chemical demand. The port storage capacity ratio also continued to decline, below the seasonal level. The in - plant inventory also slightly decreased. The storage capacity utilization rates of tertiary stations in different regions showed a differentiated trend, which may be due to uneven temperatures [20][23]. 3.3 Weekly Data Tracking 3.3.1 Price Data No specific analysis provided, only price - related charts are shown, including Brent, WTI, CP, FEI, and LPG main contract prices [27]. 3.3.2 Spread Data No specific analysis provided, only spread - related charts are shown, including the spread between different regions' civilian LPG and the main contract, and the seasonal basis of LPG [31]. 3.3.3 Disk Profit Data No specific analysis provided, only profit - related charts are shown, including import profit, PDH propylene profit, and PDH polypropylene profit [34]. 3.3.4 Spot Profit Data No specific analysis provided, only profit - related charts are shown, including import profit under different trade terms, PDH propylene profit, PDH polypropylene profit, and etherification gross profit [37]. 3.3.5 Supply Data - The data shows the seasonal trends of LPG production, crude oil processing volume, and the capacity utilization rates of major and independent refineries [40]. - There are also schedules for domestic major refinery device overhauls and PDH device overhauls of some enterprises [43][45]. 3.3.6 Inventory Data The data shows the seasonal trends of LPG port inventory, port storage capacity ratio, and the storage capacity utilization rate of tertiary stations [52].

Group 1: Report Industry Investment Rating - No relevant content provided Group 2: Core Viewpoints - The Middle East has a tight supply of LPG, and prices are unlikely to drop significantly in winter. The domestic LPG futures market is expected to fluctuate weakly in the short term. Attention should be paid to the subsequent operation of PDH under high costs and the situation of factory warehouse warrants [4] Group 3: Summary Based on Related Catalogs Price Changes - On Thursday, for civil LPG, the price in East China was 4398 (+0), in Shandong was 4380 (-30), and in South China was 4500 (+10). The price of etherified C4 was 4610 (+10). The lowest delivery location was Shandong [4] - The PG futures price dropped due to factors such as falling oil prices, news of PDH shutdown, and an increase in warrants. The basis was 265 (+122), the 01 - 02 month spread was 84 (+5), and the 03 - 04 month spread was -223 (-12). The number of warrants was 5476 lots (+865) [4] - The price of domestic civil LPG decreased. The cheapest deliverable product was civil LPG in East China at 4419 [4] Market Conditions - The overseas paper market first rose and then fell. The FEI and CP month spreads strengthened, while the MB month spread weakened. The oil - gas ratio declined. The domestic - overseas spread weakened, with PG - CP at 71 (-28) and PG - FEI at 65 (-14). The US - Asia arbitrage window opened [4] - The arrival of LPG increased by 12.25%, and port inventories increased by 3.22%. External sales increased slightly by 1.3%, and refinery storage capacity increased slightly by 0.27%. Although the profit of chemical demand was poor, the operating rate was firm, with the PDH operating rate at 72.87% (+2.65pct) [4] Profit and Cost - The spot and futures profits of PDH weakened. The performance of alkylation units deteriorated, and the MTBE profit fluctuated [4] - The arrival premium of propane in East China was 85 (-7), and the FOB premiums of propane in AFEI, the Middle East, and the US were 42 (+12), 42 (+17), and 47 (+4) respectively. Freight rates increased slightly [4]