1. Report Industry Investment Rating - Unilateral: Neutral. It is recommended to maintain a light position before the Spring Festival and pay attention to the development of the situation in Iran [2] 2. Core View of the Report - The operating rate of PDH has marginally increased due to the restart of some devices, but there is still a gap compared to the previous level. The overseas supply has tightened marginally, and the external market has phased support, but there are still resistance factors in the market. The high raw material cost suppresses the profits of downstream PDH and other devices, resulting in negative demand feedback. The price inversion of ether post - carbon four and civil gas also exerts additional pressure on the PG disk. During the Spring Festival, the main uncertainty in the market comes from the geopolitical level. If the conflict between Iran and the United States escalates, it may lead to a significant tightening of domestic supply, which is a potential upward risk factor for the disk. Otherwise, the LPG fundamentals are still expected to be oversupplied [1] 3. Summary According to Relevant Contents Market Analysis - On February 12, the regional prices of LPG were as follows: Shandong market, 4380 - 4470 yuan/ton; Northeast market, 3740 - 4200 yuan/ton; North China market, 4150 - 4460 yuan/ton; East China market, 4150 - 4570 yuan/ton; Yangtze River market, 4590 - 4850 yuan/ton; Northwest market, 4250 - 4350 yuan/ton; South China market, 4680 - 4800 yuan/ton [1] - In the first half of March 2026, the CIF prices of frozen propane and butane in East China were 638 US dollars/ton and 628 US dollars/ton respectively, both down 5 US dollars/ton. The RMB - converted prices were 4878 yuan/ton for propane and 4802 yuan/ton for butane, both down 37 yuan/ton. In South China, the CIF prices of frozen propane and butane were 628 US dollars/ton and 618 US dollars/ton respectively, both down 5 US dollars/ton. The RMB - converted prices were 4802 yuan/ton for propane and 4726 yuan/ton for butane, down 37 yuan/ton and 36 yuan/ton respectively [1] - The CP propane - butane swap in the external market had a correction yesterday, while the domestic LPG spot price remained stable overall with partial increases. The East China spot market was mainly stable, with sellers having a low willingness to adjust prices before the festival, and the trading atmosphere was mediocre. The East China market is still at a low level considering the main delivery areas of PG futures. Recently, the overseas supply has tightened marginally, especially in the United States where production and inventory have significantly declined due to the cold wave, providing phased support to the external market. However, there are still resistance factors in the market. The high raw material cost has suppressed the profits of downstream PDH and other devices, resulting in negative demand feedback. This week, the restart of some devices has driven the operating rate up to 65%, but it is still far from the previous level of 75%. The price inversion of ether post - carbon four and civil gas also exerts additional pressure on the PG disk, especially for the main PG2603 contract, where the pressure of concentrated warrant cancellation will be more obvious [1] Strategy - Unilateral: Neutral. Pay attention to the development of the situation in Iran and maintain a light position before the festival. There are no strategies for inter - period, cross - variety, spot - futures, and options [2]

Report Summary 1. Report Industry Investment Rating - Not provided in the content 2. Core Viewpoints - This week, the domestic market rose significantly affected by geopolitical and external market factors. Although the PDH operation rate decreased, the fundamentals remained tight in the short - term due to the US cold wave and the peak combustion season. As the cold wave ends and Middle - East supply returns, the negative feedback under poor PDH profits and the March maintenance season will weaken the driving force. The domestic market month - spread valuation is neutral, and the fundamentals support positive spreads, but attention should be paid to the warehouse receipt situation [4] 3. Summary by Related Catalog 3.1 Daily Quotes - 03 - 04 month - spread was - 288 (- 13), 04 - 05 month - spread was 110 (+5). As of 9 p.m., FEI and CP paper prices reached $572 and $545 respectively. The 03 basis was 96 (- 83), 02 - 03 month - spread was 64 (- 16), 03 - 04 month - spread was - 261 (- 32). Civil gas prices were differentiated, with Shandong at 4460 (+20), East China at 4372 (- 151), and South China at 4780 (- 255). The cheapest deliverable was Shandong ether - after carbon four at 4350 (+10). The number of warehouse receipts was 5898 lots (- 79). FEI month - spread rose, MB and CP month - spreads fell slightly, the oil - gas ratio declined slightly, FEI strengthened compared to CP and MB, and MB - CP strengthened. The domestic and foreign PG - FEI c1 was 55.1 (- 18.7). The arrival discount of propane in East China, China, was 85 (+8). The FOB discounts of AFEI, Middle - East, and US propane were 36 (- 1.75), 20 (- 9), and $62.52 (+11.72) respectively. Freight rates declined. The FEI - MOPI spread was - 18 (weekly YoY: +9) [4] 3.2 Weekly Views - Spot profits fluctuated, and paper profits dropped significantly. Port inventories decreased by 1.53%, ship arrivals decreased by 13.21%, and demand narrowed. The refinery storage capacity utilization rate increased by 1.21%, and external releases increased by 2.11%. The PDH operation rate was 62.25% (- 10.82%), with the second - phase of Juzhengyuan under maintenance and Ruiheng out of operation due to a fault, expected to resume next week [4]

1. Report Industry Investment Rating - No information provided 2. Core Viewpoints of the Report - This week, the domestic market rose significantly due to geopolitical and external market factors. Although the PDH operating rate decreased, the fundamentals remained tight in the short - term due to the US cold wave and the peak combustion season. As the cold wave ends, Middle - East supply returns, and with the negative feedback of poor PDH profits and the March maintenance season, the driving force will weaken. The domestic market's monthly spread valuation is neutral, and the fundamentals support positive spreads, but attention should be paid to the warehouse receipt situation [4] 3. Summary According to Relevant Catalogs 3.1 Daily Quotes - 03 - 04 monthly spread is - 275 (- 1), 04 - 05 monthly spread is 105 (+ 17). As of 9 pm, FEI and CP paper cargo prices reached 550.57 and 538.57 US dollars respectively. The 03 basis is 96 (- 83), 02 - 03 monthly spread is 64 (- 16), 03 - 04 monthly spread is - 261 (- 32). Civil gas prices are differentiated: Shandong is 4460 (+ 20), East China is 4372 (- 151), South China is 4780 (- 255). The cheapest deliverable is Shandong ether - after 4350 (+ 10). Warehouse receipts are 5898 lots (- 79). FEI monthly spreads rose, MB and CP monthly spreads fell slightly, the oil - gas ratio declined slightly, FEI strengthened compared to CP and MB, and MB - CP strengthened. The domestic and foreign PG - FEI c1 is 55.1 (- 18.7). The CIF discount of propane in East China, China is 85 (+ 8); the FOB discounts of AFEI, Middle - East, and US propane are 36 (- 1.75), 20 (- 9), and 62.52 US dollars (+ 11.72) respectively. Freight rates declined. The FEI - MOPI spread is - 18 (week - on - week; + 9) [4] 3.2 Weekly Outlook - Spot profits fluctuated, and paper cargo profits declined significantly. Port inventories decreased by 1.53%, ship arrivals decreased by 13.21%, and demand narrowed. The refinery storage capacity utilization rate increased by 1.21%, and external sales increased by 2.11%. The PDH operating rate is 62.25% (- 10.82%), with Juzhengyuan Phase II under maintenance and Ruiheng out of operation due to a fault, expected to resume next week [4]

1. Report Industry Investment Rating - No information provided regarding the report industry investment rating 2. Core Viewpoints - The overseas market remains tight with an expected increase in the official price of January CP. Domestically, the domestic - foreign price difference is relatively high, and the basis is relatively low, and the driving force needs further waiting. The profit of PDH is deteriorating, and the maintenance situation in January needs to be observed [1] 3. Summary by Relevant Data and Information Price Data - **Domestic Civil Gas**: On 2025/12/29, the price in East China was 4380 (-4), in Shandong was 4320 (+50), and in South China was 4510 (+0). The price of ether - post carbon four was 4430 (-70). The lowest delivery location was Shandong, with the latest basis at 244 (-30) [1] - **Futures Spreads**: The 02 - 03 month spread was 113 (+1), another 02 - 03 month spread was 126 (+13), and the 03 - 04 month spread was -190 (+10). For the inner - plate, the 02 basis was 186 (-95), the 01 - 02 month spread was 117 (-2), and the 03 - 04 month spread was -203 (-3) [1] - **Paper Goods Prices**: As of 9 p.m., the FEI and CP paper goods prices were 523 and 510 respectively, up 2 and 6 US dollars [1] - **1 - Month CP First - Round Recommended Values**: Propane and butane were 505/495 (+10/+10) respectively [1] - **Price Ratios**: PG - CP reached 100 (+1.86), PG - FEI reached 89 (+4.86), FEI - MB reached 185.6 (+10.6), and FEI - CP reached 11 (+3) [1] - **Propane Premiums**: The premium of propane arriving at East China was 4 (+1), and the premiums of AFEI, Middle - East, and US propane OB were 18.75 (+5.75), 50 (-1), and 43 (+0) respectively [1] - **FEL - MORI Price Difference**: -14 (up 4 month - on - month) [1] Inventory and Production Data - **Port Inventory**: The arrival rate of ships was 54.83%, and port inventory decreased by 14.3% [1] - **Refinery Data**: The refinery's commercial volume increased by 1.18%, and refinery inventory increased by 0.41% [1] - **PDH Data**: The operating rate of PDH was 76.36% (+1.36 pct) [1]

Report Summary 1. Report Industry Investment Rating - Not mentioned in the provided content 2. Core Viewpoints - The domestic LPG market shows a situation where the internal valuation is relatively high. Although the domestic chemical industry has poor profits, the operating rate remains strong, and there is an expectation of a slight increase in civil demand, providing short - term support. Attention should be paid to winter weather and oil price conditions [1] 3. Summary by Relevant Data and Information Daily Changes - On Thursday, for civil LPG, the price in East China was 4415 (-9), in Shandong was 4400 (+30), and in South China was 4420 (-20). The price of ether - after carbon four was 4570 (+0). The lowest delivery location was Shandong, with a basis of 292 (+164), the 01 - 02 month spread was 68 (-9), and the 03 - 04 month spread was - 237 (-31). As of 21:00, FEI was 527 (-4) and CP was 521 (-3) dollars per ton [1] Weekly Views - The futures market was volatile, with a basis of 143 (+232), the 01 - 02 month spread of 79 (+3), and the 03 - 04 month spread of - 211 (-19). The number of warehouse receipts was 4611 lots (-200). Civil LPG prices rose, and the cheapest delivery product was civil LPG in East China at 4411 (+88). The foreign market FEI declined, while CP and MB increased, and the oil - gas ratio decreased. The internal and external markets weakened, with PG - CP dropping to 100 (-21) and PG - FEI dropping to 79 (-7). The US - Asia arbitrage window opened. The arrival premium for propane in East China was 97 (-2), and the FOB premiums for propane in AFEI, the Middle East, and the United States were 30 (+18.75), 25 (-13), and 43 dollars (+4) respectively. Freight rates declined. The spot profit of PDH weakened, and the futures profit decreased; the alkylation unit improved; the MTBE profit fluctuated. Port inventories decreased (-7%) due to a significant drop in arrivals (-18%) and a slight increase in demand; refinery inventories increased slightly (+0.86%). The PDH operating rate was 70.22% (+0.4pct), the alkylation operating rate was 37.93% (+1pct), and the MTBE operating rate was 71.58% (+0) [1]

Report Summary 1) Report Industry Investment Rating No information provided. 2) Core View of the Report The domestic market has a relatively high valuation. Although the domestic chemical industry has poor profits, the operating rate remains firm, and there is an expectation of a slight increase in civil demand, so there is still short - term support. Attention should also be paid to winter weather and oil price conditions [1]. 3) Summary by Related Content Daily Changes - On Monday, for civil gas, the prices in East China were 4401 (-10), in Shandong 4500 (+0), and in South China 4460 (-10). The price of ether - after carbon four was 4540 (+70). The lowest delivery location was East China, with a basis of 91 (-52) and a 01 - 02 month spread of 71 (-8). As of 21:00, FEI was 528 (+2) and CP was 508 (+2) dollars/ton [1]. Weekly Views - The futures market fluctuated. The basis was 143 (+232), the 01 - 02 month spread was 79 (+3), and the 03 - 04 month spread was -211 (-19). The number of warehouse receipts was 4611 (-200) hands. Civil gas prices rose, and the cheapest delivery product was East China civil gas at 4411 (+88). The external market FEI declined, while CP and MB increased, and the oil - gas ratio decreased. Both domestic and external markets weakened. PG - CP dropped to 100 (-21); PG - FEI dropped to 79 (-7). The US - Asia arbitrage window opened. The arrival premium of propane in East China was 97 (-2), and the FOB premiums of propane in AFEI, the Middle East, and the US were 30 (+18.75), 25 (-13), and 43 dollars (+4) respectively. Freight rates decreased [1]. - PDH spot profits weakened, and the futures market profits declined; the alkylation unit improved; MTBE profits fluctuated. Port inventories decreased (-7%) due to a significant drop in incoming ships (-18%) and a slight increase in demand; refinery inventories increased slightly (+0.86%). The PDH operating rate was 70.22% (+0.4pct), the alkylation operating rate was 37.93% (+1pct), and the MTBE operating rate was 71.58% (+0) [1].

Group 1: Report Industry Investment Rating - No information provided Group 2: Report's Core View - The domestic civil LPG market may show a pattern of stronger in the south and weaker in the north, with overall peak - season expectations. PDH profit contraction may lead to a decline in propane demand, and the current domestic market valuation is high and may decline. The international propane market is in a loose pattern, and attention should be paid to weather and US cold wave conditions [1] Group 3: Summary According to Related Content Price and Basis Information - On Thursday, for civil LPG, the price in East China was 4368 (-10), in Shandong was 4400 (+0), and in South China was 4490 (+0). The price of ether - post carbon four was 4630 (+0). The lowest delivery location was East China, with a basis of - 6, and the daily change was (+74). The 12 - 01 monthly spread was 98 (-3). FEI was 501 (+2) and CP was 480 (+6) dollars/ton [1] - The PG main contract fluctuated. The basis was 102 (+116), the 12 - 01 monthly spread was 72 (-8). The number of warehouse receipts was 4444 (+250). The cheapest delivery product was East China civil LPG at 4374; in Shandong it was 4380 (+80), in East China it was 4374 (+95), and in South China it was 4450 (+50). The price of Shandong ether - post carbon four was 4500 (+80) [1] Market Spread and Margin Information - The external market price declined; the internal - external spread strengthened. PG - CP reached 137 (+4), PG - FEI reached 113 (+15.6); FEI - MB was 153 (-1.8). The arrival discount of propane in East China was 85 US dollars (+6), and the freight was basically flat. The FEI - MOPI spread widened, and the switching window was still open, with the latest at - 73 (-6) [1] - The naphtha crack spread changed little and was at a relatively high level this year. The profit of Shandong PDH to produce propylene declined significantly (some plants shut down). The profit of alkylation plants rebounded. The MTBE production gross profit changed little, and the export profit fluctuated [1] Supply, Demand and Inventory Information - Domestic production decreased, and factory inventories were basically flat; the arrival potential was limited, terminal sales improved, and port inventories decreased. The PDH operating rate was 75.49% (+1.6), as Lihuayi Weiyuan started to full - load operation, while Binhua, Xintai, and Haiwei shut down successively [1]

Report Summary 1) Report Industry Investment Rating No information provided. 2) Core Viewpoints - The domestic civil LPG market may show a pattern of stronger in the south and weaker in the north, with an overall expectation of a peak season [1]. - The contraction of PDH profits may lead to a decline in propane demand, and the current domestic market valuation is high and may fall [1]. - The international propane market is in a loose pattern, and attention should be paid to weather and US cold wave conditions [1]. 3) Summary by Related Content Day - to - Day Changes - In the civil gas market on Wednesday, prices in East China were 4378 (-9), in Shandong 4440 (+40), and in South China 4490 (+0). The price of ether - post carbon four was 4630 (+0). The lowest delivery location was East China, with a basis of 85 (+68), and the 12 - 01 month spread was 96 (+11). FEI was 498.71 (+3.71) and CP was 473.71 (+5.71) dollars/ton [1]. - The PG main contract fluctuated. The basis was 102 (+116), the 12 - 01 month spread was 72 (-8), and the number of warehouse receipts was 4444 (+250). The cheapest delivery product was East China civil LPG at 4374; prices in Shandong were 4380 (+80), in East China 4374 (+95), and in South China 4450 (+50). The price of Shandong ether - post carbon four was 4500 (+80) [1]. - The external market price declined; the domestic - foreign spread strengthened, with PG - CP reaching 137 (+4), PG - FEI reaching 113 (+15.6), and FEI - MB reaching 153 (-1.8). The CIF discount of propane in East China was 85 US dollars (+6), and the freight rate was basically flat. The FEI - MOPI spread widened, and the switching window remained open, with the latest value at - 73 (-6) [1]. Weekly Viewpoints - The cracking spread of naphtha changed little and remained at a relatively high level this year. The profit of PDH production of propylene in Shandong decreased significantly (some plants were shut down), the profit of alkylation plants rebounded, the production gross profit of MTBE changed little, and the export profit fluctuated [1]. - Domestic production decreased, factory inventories were basically flat, the arrival potential was limited, terminal sales improved, and port inventories decreased. The PDH operating rate was 75.49% (+1.6) due to Li Huayi Weiyuan operating at full capacity, while Binhua, Xintai, and Haiwei shut down successively [1].

Group 1: Report Industry Investment Rating - There is no information about the report industry investment rating in the provided content. Group 2: Report's Core View - The domestic civil gas may show a pattern of stronger in the south and weaker in the north, with an overall expectation of a peak season. The profit contraction of PDH may lead to a decline in propane demand, and the current domestic market valuation is high with a possible decline. The international propane market is in a loose pattern, and attention should be paid to the weather and cold snaps in the United States [1]. Group 3: Summary According to Relevant Catalogs Price Changes - On Tuesday, for civil gas, the price in East China was 4387 (+10), in Shandong was 4400 (+20), and in South China was 4490 (+35). The price of etherified C4 was 4630 (+0). The lowest delivery location was East China, with the basis changing by 17 (-37) daily, and the December - January spread was 85 (-5). FEI was 493 (-1.75) and CP was 468 (+0) US dollars per ton [1]. - The PG main contract fluctuated. The basis was 102 (+116), the December - January spread was 72 (-8). The number of warehouse receipts was 4444 lots (+250). The cheapest deliverable was the civil gas in East China at 4374; in Shandong it was 4380 (+80), in East China it was 4374 (+95), and in South China it was 4450 (+50). The price of Shandong etherified C4 was 4500 (+80). The external market price declined; the domestic - foreign spread strengthened, with PG - CP reaching 137 (+4), PG - FEI reaching 113 (+15.6); FEI - MB was 153 (-1.8). The arrival discount of propane in East China was 85 US dollars (+6), and the freight was basically flat. The FEI - MOPI spread widened, and the switching window remained open, with the latest at -73 (-6) [1]. Industry Profit and Operation - The profit of propylene production from Shandong PDH dropped significantly (some plants were shut down). The profit of alkylation plants rebounded. The production gross profit of MTBE changed little, and the export profit fluctuated. Domestic production decreased, the factory inventory was basically flat; the arrival was limited, the terminal sales improved, and the port inventory decreased. The PDH operating rate was 75.45% (+1.6), as Lihuayi Weiyuan started to full - load operation, while Binhua, Xintai, and Haiwei shut down successively [1].

Group 1: Report Industry Investment Rating - No relevant content found Group 2: Core Viewpoints of the Report - The domestic civil LPG market may show a pattern where the south is stronger than the north, with an overall expectation of a peak season; the contraction of PDH profits may lead to a decline in propane demand, and the current domestic market valuation is high and may fall. The international propane market has a loose pattern, and attention should be paid to the weather and cold snaps in the United States [1] Group 3: Summary Based on Related Catalogs Price and Basis Information - On Thursday, for civil LPG, the price in East China was 4374 (+33), in Shandong 4360 (+0), and in South China 4440 (+50). The price of etherified C4 was 4520 (-90). The lowest delivery location was Shandong, with the basis changing by 26 (+63) daily, and the December - January spread at 72 (-16). FEI was 490 (-14) and CP was 463 (-7) dollars per ton [1] - The PG main contract fluctuated. The basis was 102 (+116), the December - January spread was 72 (-8). The number of warehouse receipts was 4444 (+250). The cheapest delivery product was East China civil LPG at 4374; Shandong was 4380 (+80), East China 4374 (+95), and South China 4450 (+50). Shandong etherified C4 was 4500 (+80) [1] Market Spread and Margin Information - The external market price declined; the domestic - foreign spread strengthened, with PG - CP reaching 137 (+4), PG - FEI to 113 (+15.6); FEI - MB to 153 (-1.8). The arrival discount of propane in East China was 85 US dollars (+6), and the freight was basically flat. The FEI - MOPI spread widened, and the switching window remained open, with the latest at -73 (-6) [1] - The naphtha crack spread changed little and was at a relatively high level this year. The profit of PDH to propylene in Shandong declined significantly (some plants stopped production). The profit of alkylation plants rebounded. The production gross profit of MTBE changed little, and the export profit fluctuated [1] Supply and Demand and Inventory Information - Domestic production decreased, and factory inventories were basically flat; the arrival potential was limited, the terminal sales improved, and the port inventory decreased. The PDH operating rate was 75.49% (+1.6), as Liuhua Yiyuan operated at full capacity, while Binhuahua, Xintai, and Haiwei successively stopped production [1]