Report Industry Investment Ratings No relevant content provided. Core Views of the Report Macroeconomics - Domestically, although the economic growth rate is showing a marginal slowdown, there is no need for excessive anxiety. A package of economic - stabilizing policies are gradually taking effect, and fiscal expenditure is accelerating. The trend of future economic data remains uncertain and requires continuous tracking of high - frequency data [1]. - Overseas, the possibility of a September interest rate cut remains uncertain. Attention should be focused on changes in US economic data and the policy signals released by Powell's speech at the Jackson Hole Annual Meeting [2]. Financial Futures - **Stock Index**: The stock market is in a stage of long - short game. Yesterday, the stock market as a whole pulled back, and the pressure line of the index was not successfully broken. If the trading volume narrows in the future, the decline of small - cap indexes may also widen. Short - term attention should be paid to market sentiment and trading volume adjustment near key points [3]. - **Treasury Bonds**: The bond market showed a weak rebound on Tuesday. If the stock market continues to fluctuate, it will be beneficial for the bond market to stabilize. However, if the stock market rises after consolidation, it will suppress the bond market. It remains to be seen whether the bond market can bottom out [3]. - **Container Shipping**: The freight index (European Line) futures prices showed a trend of first decline and then rebound. EC is likely to continue to fluctuate, and some contracts may rebound at low levels [4][6]. Commodities Non - ferrous Metals - **Gold & Silver**: Medium - to long - term trends may be bullish, while short - term trends are weak. The strategy is to buy on dips [7][9]. - **Copper**: Prices are mainly in a range - bound state, and it is recommended to make low - level purchases [10]. - **Aluminum Industry Chain**: Aluminum prices are expected to fluctuate; alumina prices are expected to be weakly volatile; casting aluminum alloy prices are expected to fluctuate. It is advisable to consider long - alloy and short - aluminum arbitrage when the price difference widens [11][13]. - **Zinc**: Prices are in a weak state, and short - term trading is mainly range - bound. Consider selling the outer market and buying the inner market for arbitrage [13]. - **Nickel and Stainless Steel**: Prices continue to correct, but there is still fundamental support [14]. - **Tin**: Prices are mainly in a range - bound state, with a relatively strong bias [15][16]. - **Industrial Silicon & Polysilicon**: Polysilicon is expected to be in a range - bound and slightly bullish state, and industrial silicon will also be boosted [16][17]. - **Lead**: Prices have limited upside and downside potential and are mainly in a range - bound state [17]. Black Metals - **Rebar and Hot - Rolled Coil**: The fundamentals of steel are weakening, with supply increasing and demand decreasing, and inventory accumulation accelerating. Steel prices are expected to be in a range - bound and weakening state [20][21]. - **Iron Ore**: The market is trading on weak demand rather than production restrictions. Iron ore prices are expected to be in a range - bound state [21]. - **Coking Coal and Coke**: The coal - coke market may fluctuate widely with market sentiment. In the future, attention should be paid to the inventory changes of finished steel products [22][23]. - **Silicon Iron and Silicon Manganese**: Supply pressure is increasing, and prices may decline. It is recommended to wait and see [23][24]. Energy and Chemicals - **Crude Oil**: Geopolitical support is weakening, and fundamental bearish factors are accumulating. There is an increased risk of a medium - term downward break, and short - term geopolitical developments need to be tracked [25][26]. - **LPG**: The fundamentals have not changed significantly, and the current situation is mainly a game in the near - term contracts [26][28]. - **PTA - PX**: In the short term, the supply - demand contradiction is not significant, and it is recommended to widen the PTA processing margin on dips [29][31]. - **Methanol**: Wait for the opportunity to go long. It is advisable to consider laying out long positions in the far - month contracts after port cargo diversion or an increase in storage fees [32][33]. - **PP**: Prices are in a weak range - bound state. The future trend depends on demand changes [34][35]. - **PE**: Prices are in a range - bound state in the short term, and the future trend depends on the progress of downstream demand recovery [36][37]. - **Pure Benzene and Styrene**: Prices are in a range - bound state. For styrene, short - term unilateral short - selling should be cautious, and consider narrowing the price difference between pure benzene and styrene on rallies [37][39]. - **Fuel Oil**: Prices remain weak, and the short - term driving force is downward [39][40]. - **Low - Sulfur Fuel Oil**: The crack spread is strengthening, and it is recommended to wait and see in the short term [40][41]. - **Asphalt**: The price center has shifted downward. In the short term, the fundamentals have weakened, and in the long - term, attention should be paid to the progress of specific "anti - involution" measures for the asphalt industry chain [42][43]. - **Rubber & 20 - Number Rubber**: RU2501 is expected to be in a weak range - bound state. Pay attention to the support level around 15,500. Consider widening the price difference between deep - colored and light - colored rubber on dips [43][45]. - **Urea**: Prices are in a pattern with support below and pressure above, and the 09 contract is expected to fluctuate between 1,650 and 1,850 [46][47]. - **Glass, Soda Ash, and Caustic Soda**: - **Soda Ash**: The supply - demand pattern of strong supply and weak demand remains unchanged, and attention should be paid to the price fluctuations of coal and raw salt [47][48]. - **Glass**: The market is in a weak equilibrium state. Pay attention to policy instructions and short - term emotional changes [49]. - **Caustic Soda**: Pay attention to the improvement of downstream demand and the enthusiasm for downstream inventory replenishment [50]. - **Pulp**: It is recommended to wait and see in the short term [50][51]. - **Logs**: Prices are in a reasonable range - bound state, with limited possibility of significant price changes [51]. Summaries by Relevant Catalogs Macroeconomics - **Domestic**: The cumulative growth rate of the national general public budget from January to July turned positive for the first time, and stamp duty increased by 20.7%. Fiscal expenditure is accelerating, and economic - stabilizing policies are taking effect [1]. - **Overseas**: The possibility of a September interest rate cut in the US remains uncertain. The Jackson Hole Annual Meeting is an important window to observe policy trends [2]. Financial Futures Stock Index - **Market Review**: Yesterday, the stock index pulled back with reduced trading volume, and small - cap indexes had relatively smaller decline rates. The trading volume of the two markets decreased by 175.794 billion yuan [3]. - **Important Information**: From September 1, new conditions for personal pension withdrawals will be added [3]. - **Core Logic**: The index pressure line was not broken, and the large - cap index declined more. If trading volume narrows, small - cap indexes may also decline more [3]. Treasury Bonds - **Market Performance**: On Tuesday, bond futures fluctuated at a low level and finally closed up across the board, showing a weak rebound [3]. - **Core Logic**: The central bank made large - scale injections, and the bond market got a breather due to the stock market's consolidation. Whether the bond market can bottom out remains to be seen [3]. Container Shipping - **Market Review**: Yesterday, the container shipping index (European Line) futures prices first declined slightly and then rebounded [4][6]. - **Important Information**: Hamas made concessions on the cease - fire plan, and some shipping companies adjusted their European Line quotes [4][5]. - **Core Logic**: Geopolitical risks decreased, but the reduction in the decline of MSK's European Line spot - cabin quotes was positive for prices. EC is likely to continue to fluctuate [4][6]. Commodities Non - ferrous Metals - **Gold & Silver** - **Market Review**: On Tuesday, the precious metals market was in a weak state. COMEX gold 2512 contract closed at $3,358.9 per ounce, down 0.57%; US silver 2509 contract closed at $37.33 per ounce, down 1.84% [7]. - **Core Logic**: Market focus is on the Jackson Hole Annual Meeting. Long - term trends may be bullish, while short - term trends are weak [7][9]. - **Copper** - **Market Review**: The Shanghai copper index was in a range - bound state on Tuesday, with low trading volume and stable decline in open interest [10]. - **Core Logic**: Short - term prices are likely to continue to fluctuate, and the previous support level can be raised [10]. - **Aluminum Industry Chain** - **Market Review**: The previous trading day, the main contract of Shanghai aluminum closed at 20,545 yuan per ton, down 0.19% [10]. - **Core Logic**: Aluminum prices are expected to fluctuate; alumina prices are expected to be weakly volatile; casting aluminum alloy prices are expected to fluctuate [11][13]. - **Zinc** - **Market Review**: The previous trading day, the main contract of Shanghai zinc closed at 22,205 yuan per ton, down 0.69% [13]. - **Core Logic**: Supply is gradually shifting from tight to surplus, demand is weak, and there is a risk of short - term range - bound trading [13]. - **Nickel and Stainless Steel** - **Market Review**: The main contract of Shanghai nickel closed at 120,330 yuan per ton, down 0.37%; the main contract of stainless steel closed at 12,885 yuan per ton, down 1.07% [14]. - **Core Logic**: Prices continue to correct, but there is still fundamental support [14]. - **Tin** - **Market Review**: The Shanghai tin index strengthened in the afternoon on Tuesday, closing at 26.8 yuan per ton [14]. - **Core Logic**: Prices are mainly in a range - bound state, with a relatively strong bias [15][16]. - **Industrial Silicon & Polysilicon** - **Market Review**: On Tuesday, the main contract of industrial silicon futures closed at 8,625 yuan per ton, up 0.23% [16]. - **Core Logic**: Polysilicon is expected to be in a range - bound and slightly bullish state, and industrial silicon will also be boosted [16][17]. - **Lead** - **Market Review**: The previous trading day, the main contract of Shanghai lead closed at 16,825 yuan per ton, up 0.30% [17]. - **Core Logic**: Prices have limited upside and downside potential and are mainly in a range - bound state [17]. Black Metals - **Rebar and Hot - Rolled Coil** - **Market Review**: Prices are in a weak downward trend [20]. - **Important Information**: Steel mills adjusted scrap purchase prices, and some steel mills received environmental protection production restriction notices [20]. - **Core Logic**: Supply increases, demand decreases, inventory accumulates, and prices are expected to be in a range - bound and weakening state [20][21]. - **Iron Ore** - **Market Review**: Iron ore prices are in a weak state, with five consecutive days of decline [21]. - **Important Information**: There are vehicle restrictions and an increase in blast furnace maintenance in Hebei [21]. - **Core Logic**: The market is trading on weak demand, and iron ore prices are expected to be in a range - bound state [21]. - **Coking Coal and Coke** - **Market Review**: Prices are in a range - bound and declining state [21]. - **Important Information**: There are rainfall and high - temperature weather, and some steel mills received environmental protection production restriction notices [22]. - **Core Logic**: The market may fluctuate widely with sentiment, and attention should be paid to finished steel inventory changes [22][23]. - **Silicon Iron and Silicon Manganese** - **Market Review**: Supply is increasing, and prices may decline [23]. - **Core Logic**: Supply pressure is increasing, and prices may decline due to the game between strong expectations and weak reality [23][24]. Energy and Chemicals - **Crude Oil** - **Market Review**: Overnight, the crude oil futures prices declined slightly [25]. - **Important Information**: There are developments in the geopolitical situation and changes in oil - buying sources in India [25]. - **Core Logic**: Geopolitical support is weakening, and fundamental bearish factors are accumulating [25][26]. - **LPG** - **Market Review**: LPG futures prices declined slightly [26]. - **Important Information**: Some refineries had maintenance and restart operations [27]. - **Core Logic**: Fundamentals have not changed significantly, and it is a near - term contract game [26][28]. - **PTA - PX** - **Market Review**: PX - PTA prices are in a range - bound state [29]. - **Core Logic**: In the short term, the supply - demand contradiction is not significant, and it is recommended to widen the PTA processing margin on dips [29][31]. - **Methanol** - **Market Review**: The methanol 09 contract declined [32]. - **Core Logic**: Wait for the opportunity to go long after port cargo diversion or an increase in storage fees [32][33]. - **PP** - **Market Review**: PP prices are in a weak range - bound state [34]. - **Core Logic**: The future trend depends on demand changes [34][35]. - **PE** - **Market Review**: PE prices are in a range - bound state [36]. - **Core Logic**: The future trend depends on the progress of downstream demand recovery [36][37]. - **Pure Benzene and Styrene** - **Market Review**: Prices are in a range - bound state [37][38]. - **Core Logic**: For styrene, short - term unilateral short - selling should be cautious, and consider narrowing the price difference between pure benzene and styrene on rallies [37][39]. - **Fuel Oil** - **Market Review**: Fuel oil prices remain weak [39]. - **Core Logic**: The short - term driving force is downward [39][40]. - **Low - Sulfur Fuel Oil** - **Market Review**: The crack spread is strengthening [40]. - **Core Logic**: It is recommended to wait and see in the short term [40][41]. - **Asphalt** - **Market Review**: Asphalt prices have declined [42]. - **Core Logic**: In the short term, the fundamentals have weakened, and in the long - term, attention should be paid to the progress of specific "anti - involution" measures for the asphalt industry chain [42][43]. - **Rubber & 20 - Number Rubber** - **Market Review**: Rubber prices declined [43]. - **Core Logic**: RU2501 is expected to be in a weak range - bound state. Pay attention to the support level around 15,500 [43][45]. - **Urea** - **Market Review**: Urea prices rose [46]. - **Core Logic**: Prices are in a pattern with support below and pressure above, and the 09 contract is expected to fluctuate between 1,650 and 1,850 [46][47]. - **Glass, Soda Ash, and Caustic Soda** - **Soda Ash** - **Market Review**: The soda ash 2601 contract declined [47]. - **Core Logic**: The supply - demand pattern of strong supply and weak demand remains unchanged [47][48]. - **Glass** - **Market Review**: The glass 2601 contract declined [49]. - **Core Logic**: The market is in a weak equilibrium state. Pay attention to policy instructions and short - term emotional changes [49]. - **Caustic Soda** - **Market Review**: The caustic soda 2601 contract declined [50]. - **Core Logic**: Pay attention to the improvement of downstream demand and the enthusiasm for downstream inventory replenishment [50]. - **Pulp** - **Market Review**: The main contract of pulp declined [50]. - **Core Logic**: It is recommended to wait and see in the short term [50][51]. - **Logs** - **Market Review**: The main contract of logs declined [51]. - **Core Logic**: Prices are in a reasonable range - bound state, with limited possibility of significant price changes [51].

Core Viewpoints - PDH unit profits are continuously recovering, the operating load is rising, and the chemical demand for propane provides short - term support for prices [2] - The external release volume of domestic refineries decreases seasonally, and the recovery pace of arrivals is slow, so the supply of domestic gas tends to be stable [2] - Propane inventories in North America are higher than the same period last year, entering the inventory accumulation cycle, and combined with increased sales in the Middle East, it suppresses the international market [2] - The peak combustion season is approaching the end, the terminal demand is weakly declining, and the spot price continues to decline slightly [2] - LPG maintains a pattern of weak supply and demand. Overseas inventory accumulation and seasonal weakening of demand suppress the market, but the recovery of PDH demand provides bottom - line support, and it will fluctuate weakly in the short term [3] Data Indicators (Showing Multiple Data Trends) - Propane Far - East CIF price FEI: M1 settlement price (daily), FEI and Brent ratio (daily) seasonality, PDH profit/operating rate, FEI/Brent ratio and PDH profit [4] - FEI/MOPJ spread (daily) seasonality, propane Far - East CIF price FEI M1 - M2 (daily) seasonality [8] - FEI discount, Middle - East FOB discount (daily) [9][10] - Propane US FOB price: M1 settlement price (daily), MB and WTI ratio (daily) seasonality [11] - CP M1 - MB M1 [12] - VLGC freight [14] - US propane weekly production, propane imports from the US (weekly) seasonality, propane inventory in the US (weekly) seasonality, propane exports from the US (weekly) seasonality [16][18][19]

Financial Performance - Year-to-date adjusted diluted EPS increased by 10% from $3.22 in FY24 to $3.55 in FY25[13] - Year-to-date FY25 GAAP diluted EPS is $3.16, compared to $2.52 in year-to-date FY24[14] - Year-to-date FY25 free cash flow is $558 million[14], an 11% increase compared to year-to-date FY24[15] - Available liquidity as of June 30, 2025, is $1.9 billion[14] - The company expects to achieve the top end of its FY25 adjusted EPS guidance range of $3.00 to $3.15 per share[15] Segment Results (Q3 FY25) - Utilities EBIT decreased from $39 million in Q3 FY24 to $30 million in Q3 FY25[22] - Midstream & Marketing EBIT decreased from $43 million in Q3 FY24 to $27 million in Q3 FY25[24] - UGI International EBIT increased from -$19 million in Q3 FY24 to $43 million in Q3 FY25[28] - AmeriGas Propane EBIT decreased from $9 million in Q3 FY24 to -$28 million in Q3 FY25[28, 32] Strategic Initiatives - The company is generating approximately $150 million of cash through LPG asset sales in Hawaii, Italy, and a small cylinder business in the UK[16] - Year-to-date capital expenditure is $605 million, with over 80% allocated to the natural gas businesses[16] - Utilities added approximately 9,000 residential heating and commercial customers year-to-date FY25[16] - AmeriGas is substantially exiting the wholesale business, which represented approximately 11% of total LPG gallons sold and was essentially a breakeven business in FY24[16]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - Overseas macro: Market concerns about US employment and economic slowdown are rising, leading to an increase in expectations for Fed rate cuts in the second half of the year, which is favorable for gold. In the long term, the weak US dollar pattern continues, and attention should be paid to non - US dollar assets [5]. - Domestic macro: In the context of stable and progressive domestic economic operation in the first half of the year, the overall tone of the Politburo meeting in July is to improve the quality and speed of using existing policies, with relatively limited incremental policies. The composite PMI in July remains above the critical point [5]. - Asset viewpoints: For domestic assets, there are mainly structural opportunities. In the second half of the year, the policy - driven logic is strengthened, and the probability of incremental policy implementation is higher in the fourth quarter [5]. 3. Summary by Related Catalogs 3.1 Financial Market and Commodity Price Changes - **Equity Index Futures**: The CSI 300 futures closed at 4029.6, down 0.68% daily, 2.10% weekly, 0.68% monthly, up 7.77% quarterly, and 2.77% year - to - date. The Shanghai 50 futures and the CSI 500 futures also showed different degrees of decline, while the CSI 1000 futures rose 0.07% daily [3]. - **Treasury Bond Futures**: The 2 - year, 5 - year, 10 - year, and 30 - year treasury bond futures had different price changes, with the 10 - year treasury bond futures down 0.05% daily [3]. - **Foreign Exchange**: The US dollar index was at 98.69, down 1.36% daily, 1.04% weekly. The US dollar intermediate price had a 2 - pip daily increase [3]. - **Interest Rates**: The 10 - year Chinese government bond yield was 1.71, up 0.2 bp daily. The 10 - year US government bond yield was 4.23, down 14 bp daily [3]. - **Commodities**: In the domestic commodity market, coal rose 1.93% daily, while industrial silicon fell 2.97% daily. In the overseas commodity market, NYMEX WTI crude oil was at 67.26, down 3.03% daily [3]. 3.2 Macro Analysis - **Overseas Macro**: In the first half of the week, market bets on Fed rate cuts declined due to better - than - expected Q2 GDP, tariff easing, and hawkish signals from the Fed's July meeting. However, the July non - farm payrolls were below expectations, increasing market concerns about the US economic downturn and Fed rate cuts. Key events to watch include US inflation data in August, the Jackson Hole meeting, and subsequent non - farm payrolls [5]. - **Domestic Macro**: After the Politburo meeting in July, the overall policy tone focuses on using existing policies more effectively, with relatively few incremental policies. The composite PMI in July remains above the critical point, and attention should be paid to the progress of economic negotiations between the US and other economies [5]. 3.3 Asset Views - **Domestic Assets**: There are mainly structural opportunities. Policy - driven logic will be strengthened in the second half of the year, and the probability of incremental policy implementation is higher in the fourth quarter [5]. - **Overseas Assets**: Market concerns about US employment and economic slowdown are rising, increasing expectations for Fed rate cuts in the second half of the year, which is favorable for gold. In the long term, the weak US dollar pattern continues, and attention should be paid to non - US dollar assets [5]. 3.4 Sector and Variety Analysis - **Financial Sector**: Stock index futures are expected to rise in a volatile manner, stock index options will be volatile, and treasury bond futures will also be in a volatile state [6]. - **Precious Metals Sector**: Gold and silver are in a short - term adjustment phase and are expected to be volatile [6]. - **Shipping Sector**: The container shipping to Europe route is in a state of game between peak - season expectations and price - rise implementation, and is expected to be volatile [6]. - **Black Building Materials Sector**: Most varieties such as steel, iron ore, and coke are expected to be volatile, with their fundamentals and market sentiments changing [6]. - **Non - ferrous and New Materials Sector**: Most non - ferrous metal varieties are expected to be volatile, affected by factors such as supply disturbances and policy expectations [6]. - **Energy and Chemical Sector**: Crude oil supply is increasing, and domestic chemical products are expected to benefit from stable - growth expectations. Most varieties are expected to be volatile, while asphalt and high - sulfur and low - sulfur fuel oils are expected to decline [8]. - **Agricultural Sector**: Most agricultural products are expected to be volatile, affected by factors such as weather, trade policies, and supply - demand relationships [8].

Core View - Propane dehydrogenation unit operating rate increased to 73.13% (weekly increase of 1.35%), and the support for chemical demand marginally strengthened [2] - Saudi CP prices were lowered (propane at $575/ton, butane at $545/ton), reducing the import cost at the port of arrival and partially alleviating domestic price pressure [2] - Domestic refinery operating rate was at a high level, with the commercial volume maintained above 520,000 tons and port inventory exceeding 3 million tons [2] - Consumption was sluggish during the off - season, and the sales - to - production ratios in East China and South China dropped to 99% and 93% respectively (weekly decrease of 1% - 7%) [2] - Despite the marginal improvement in chemical demand, supply pressure and the off - season for combustion dominated the market. Coupled with high port inventory, the price rebound space was limited [3] Data Charts - The report includes multiple data charts, such as the daily settlement price of propane's Far - East Inbound Price FEI: M1, the seasonal comparison between FEI and Brent, PDH profit/operating rate, FEI/MOPJ spread seasonality, propane's US FOB price, MB and WTI ratio seasonality, VLGC freight, US propane weekly production, import volume, inventory, and export volume [4][5][7]

Report Information - Report Title: C3 Industry Chain Weekly Report [1] - Report Date: August 3, 2025 [1] - Analyst: Chen Xinchao [1] Investment Rating - No investment rating is provided in the report. Core Viewpoints - **LPG**: Import costs are decreasing, and prices are weakly oscillating. Domestic civil gas supply and demand are both weak, and the overall price is fluctuating weakly. Ether C4 prices are oscillating, and the overall chemical industry's start - up is expected to have limited short - term boost. [3] - **Propylene**: The supply - demand pattern is loose, and prices are under pressure and weak. Although the supply - demand gap may narrow further, it is difficult to drive price increases. The supply - demand pressure may ease from late August to September, and prices may turn around. [4] Summary by Section LPG Part Price & Spread - LPG domestic spot prices in various regions have decreased. For example, from July 25 to August 1, Shandong civil gas decreased by 100 yuan/ton, and South China imported gas decreased by 120 yuan/ton. [8][15] - CP prices were released lower, and FEI discounts narrowed and then decreased again. [16] Supply - US propane shipments to Japan and South Korea increased significantly, while shipments to China decreased significantly. [26] - Middle East LPG shipments decreased significantly, and shipments to China, India, and Southeast Asia all decreased. [34][40] - China's LPG total commodity volume was 52.7 million tons (+0.3%), with civil gas at 21.0 million tons (-0.0%). Propane imports increased by 22.5 million tons. [50][59] Demand & Inventory - Chemical demand: PDH decreased slightly, and MTBE's operating rate decreased for the first time after 8 consecutive weeks of increase. [65] - LPG refinery inventories: Some regions decreased, such as East China's civil gas refinery inventory decreased from 18.43 million tons to 18.08 million tons. [68] - LPG terminal import inventories: East China and Fujian reduced inventories, while other regions' terminals increased inventories. [78] Propylene Part Price & Spread - Upstream prices: Brent rose by 1.13 dollars/bbl, and WTI rose by 2.19 dollars/bbl week - on - week. [89] - Propylene prices: Shandong, East China, and South China decreased by 35, 125, and 100 yuan/ton respectively week - on - week. [89] - Downstream prices/profits: Some products' prices and profits changed, such as PP powder profit in East China increased by 105 yuan/ton. [91] Balance Sheet - **National Balance Sheet - Supply**: In August 2025, the total domestic propylene production was 529 million tons, with a weighted operating rate of 79.5%. [105] - **National Balance Sheet - Demand**: In August 2025, the total domestic propylene demand was 526 million tons, with a weighted operating rate of 79.0%. [108] - **Shandong Balance Sheet - Supply**: In August 2025, Shandong's total propylene production was 90 million tons, with a weighted operating rate of 64.0%. [112]

Core View - Supply contraction and import cost inversion support prices, but weak demand in the off - season and a weakening international market exert downward pressure. LPG futures will maintain a volatile pattern, and attention should be paid to crude oil fluctuations and the sustainability of PDH operations [3][4] Fundamental Information Supply - The commodity volume of domestic sample enterprises decreased by 0.53% week - on - week to 524,900 tons, port inventories decreased by 5.17% week - on - week to 3.04 million tons, and the import arrival volume decreased by 6.95% week - on - week, leading to a marginal easing of supply pressure [3] Cost - In the first half of the year, the import arbitrage window was closed, and the domestic imported gas price was consistently lower than the import cost line, providing bottom support for the spot market. In July, the Saudi CP propane price was $575 per ton, and the loose supply - demand situation of crude oil suppressed cost - side expectations [3] Demand - The combustion end is in the off - season with weak terminal consumption. The PDH operating rate has rebounded to 75%, but the demand for MTBE and alkylation is differentiated, and the production - sales ratio is only barely balanced [3]

1. Report Industry Investment Rating No relevant content provided. 2. Core Views of the Report LPG Part - This week, the domestic civil LPG market faced weak supply and demand. Supply slightly contracted, but seasonal demand was weak, and international LPG prices declined. Overall, prices fluctuated weakly within a narrow range, and the domestic basis strengthened due to the decline in PG futures. The price of etherified C4 oscillated downward and stabilized at the end of the week. Next week, civil demand is expected to remain seasonally weak, while the overall chemical production start - up is likely to receive some short - term support [3][4]. Propylene Part - This week, the domestic propylene market price first declined and then stabilized. At the beginning of the week, multiple restarted PDH units led to a significant increase in propylene supply, causing prices to decline. Later in the week, the restart of downstream parking units increased propylene demand, and prices stabilized [5]. 3. Summary According to the Directory LPG Part Price & Spread - LPG futures and paper prices showed certain fluctuations. For domestic spot and basis, civil gas prices in different regions had varying degrees of change, and the basis also changed. Regional quotes, premiums, and freight rates also had corresponding adjustments. Propane prices decreased compared to the previous period [8][10][18]. Supply - In domestic production, the total LPG commodity volume was 52.5 million tons, a slight reduction. The civil gas commodity volume was 21.2 million tons (-5.1%), and the etherified C4 commodity volume was 17.1 million tons (+0.7%). In terms of imports, the international vessel arrivals this week were 52.5 million tons (-16.4%). The production and imports of propane in China both decreased [4][38][45]. Demand & Inventory - In terms of demand, civil combustion demand remained seasonally weak due to high temperatures. The PDH operating rate increased significantly this week, and it is expected to rise further next week. The MTBE operating rate continued to increase to 67.6%, up 0.8% from the previous week. In terms of inventory, domestic refinery inventories of LPG and civil gas slightly increased, and LPG terminal import inventories in East China, South China, and Shandong all increased [4][48][52]. Propylene Part Price & Spread - In the propylene industry chain, upstream prices such as NAP, methanol, and propane showed different degrees of decline. Propylene prices in different regions also changed, with prices in Shandong, East China, and South China falling by 85, 15, and 100 yuan/ton respectively compared to the previous week. Downstream product prices and profits also had corresponding fluctuations [77][79][90]. Balance Sheet - The operating rates of different production methods in the propylene industry chain, such as domestic majors, Shandong local refineries, and PDH, changed. The national and Shandong propylene balance sheets showed the supply and demand situation in different months, including production, demand, and balance quantities [98][100][109]. Supply - This week, the domestic propylene market supply increased due to the gradual return of previously shut - down PDH units. The weekly propylene output was 1.166 million tons, an increase of 30,000 tons from the previous period, and the industry's overall capacity utilization rate increased by 1.9% to 73.1% [5]. Demand - This week, the overall operating rate of propylene downstream industries increased. The operating rates of downstream products such as butanol, acrylic acid, and PO all increased, mainly due to the gradual return of multiple shut - down units [5]. Downstream Inventory No relevant content provided.

1. Report Industry Investment Rating - The overall outlook for the energy and chemical industry is to approach it with a mindset of weakening oscillations. Specific varieties have different ratings: crude oil, LPG, asphalt, high - sulfur fuel oil, low - sulfur fuel oil, PTA, and urea are rated as "weakening oscillations"; PX, ethylene glycol, short - fiber, bottle - chip, PP, plastic, PVC, and methanol are rated as "oscillations"; pure benzene is rated as "oscillating strongly"; and caustic soda is rated as "oscillating strongly" [3][7][8][11][13][14][17][19][22][24][26][27][28][30][31] 2. Core Viewpoints of the Report - The international oil price continues to oscillate and consolidate. The reduction in crude oil production in the Iraqi region provides some support, but the increase in refined oil inventories in the United States and the expected inventory build - up in the future may lead to weakening oscillations in oil prices if geopolitical disturbances subside. For most energy and chemical products, factors such as supply and demand, cost, and market sentiment lead to an overall trend of weakening oscillations or oscillations. For example, asphalt prices are overvalued, high - sulfur fuel oil prices face downward pressure, and the cost - end support for LPG weakens [1][7] 3. Summary by Related Catalogs 3.1 Market Views - **Crude Oil**: Supply pressure persists, and geopolitical disturbances should be monitored. With the expected inventory build - up in the future, if geopolitical disturbances weaken, oil prices will gradually face pressure and are expected to weaken and oscillate [7] - **LPG**: The cost - end support weakens, the fundamental situation of supply - demand remains loose, and the PG futures may oscillate weakly [3][11] - **Asphalt**: The valuation of asphalt futures prices is gradually entering a severely overvalued stage, and the asphalt price difference is expected to decline as the warehouse receipts increase [8] - **High - Sulfur Fuel Oil**: The high - sulfur fuel oil futures prices face significant downward pressure, with supply increasing and demand decreasing, and the price is expected to weaken and oscillate [8][9][11] - **Low - Sulfur Fuel Oil**: It follows the crude oil to oscillate and weaken, facing factors such as a decline in shipping demand, green energy substitution, and high - sulfur substitution [11] - **Methanol**: The domestic methanol production areas show a pattern of weak supply and demand, and the price is relatively stable. The futures price oscillates in the short term [24][26] - **Urea**: The hype sentiment slows down, and the futures may return to the fundamentals. In the short term, it may face pressure to operate [24] - **Ethylene Glycol**: The weekly start - up rate declines, and the downstream start - up rate also decreases. It continues to oscillate and consolidate [17][18] - **PX**: There is insufficient driving force, and it oscillates and consolidates [13] - **PTA**: The driving force is not obvious, and it consolidates. It is expected to oscillate weakly in the short term [13] - **Short - Fiber**: The basis weakens, and there are no major contradictions in the industrial chain. The processing fee will remain stable, and the absolute value will follow the raw materials to fluctuate [19][21] - **Bottle - Chip**: Production cuts support the processing fee, and the absolute value follows the raw materials to fluctuate [22] - **PP**: The maintenance rate slightly increases, and it oscillates [28] - **Plastic**: The maintenance rate slightly increases, and it oscillates [27] - **Pure Benzene**: The near - end long positions in styrene leave the market, and pure benzene follows to decline. In the medium term, the pattern from July to August is acceptable [14] - **Styrene**: The port inventory continues to accumulate, and the price drops [16][17] - **PVC**: Market sentiment warms up again, and it mainly oscillates. The fundamental pressure still exists [30] - **Caustic Soda**: The spot price reaches the peak, and it oscillates and operates. The 09 futures contract oscillates, facing downward pressure and support [31] 3.2 Variety Data Monitoring 3.2.1 Energy and Chemical Daily Indicator Monitoring - **Inter - period Spread**: Different varieties have different inter - period spread values and changes. For example, the M1 - M2 spread of Brent is 0.96 with a change of - 0.01, and the 1 - 5 - month spread of PX is 38 with a change of - 10 [33] - **Basis and Warehouse Receipts**: Each variety has corresponding basis and warehouse receipt data. For example, the basis of asphalt is 192 with a change of 0, and the warehouse receipt is 82300 [34] - **Inter - variety Spread**: There are also corresponding values and changes in the inter - variety spread. For example, the 1 - month PP - 3MA spread is - 298 with a change of - 4 [35]

Report Industry Investment Ratings No specific industry investment ratings are provided in the report. Core Viewpoints The report provides trend forecasts for various commodities in the futures market, including precious metals, base metals, energy, agricultural products, etc., and analyzes their fundamentals and market news [2][5]. Summary by Commodity Precious Metals - **Gold**: Expected to oscillate upwards, with a trend strength of 1 [2][10]. - **Silver**: Expected to break through and rise, with a trend strength of 1 [2][10]. Base Metals - **Copper**: Market is cautious, and prices will oscillate, with a trend strength of 0 [2][11]. - **Zinc**: Under pressure, with a trend strength of -1 [2][15]. - **Lead**: Downside may be limited, with a trend strength of 0 [2][18]. - **Tin**: Prices are weakening, with a trend strength of -1 [2][23]. - **Aluminum**: Facing upward pressure, with a trend strength of 0; Alumina: Attention should be paid to the impact of the ore end, with a trend strength of -1; Cast aluminum alloy: Will oscillate within a range, with a trend strength of 0 [2][26]. - **Nickel**: News affects sentiment, and fundamentals are under pressure, with a trend strength of 0; Stainless steel: Reality and macro factors are in a game, and steel prices will oscillate, with a trend strength of 0 [2][31]. Energy - **Crude Oil - Related**: - **Fuel oil**: Weakly oscillating at night, may temporarily stabilize in the short - term [5]. - **Low - sulfur fuel oil**: Temporarily weak, with a slight decline in the high - low sulfur spread of the outer - market spot [5]. - **LPG**: Cost support is effective, may rebound in the short - term [5]. - **Coal - Related**: - **Coking coal**: Will oscillate widely, with a trend strength of 0 [2][52]. - **Coke**: Will oscillate widely, with a trend strength of 0 [2][52]. - **Steam coal**: Daily consumption is recovering, and prices will oscillate and stabilize, with a trend strength of 0 [54][57]. Chemicals - **Carbonate Lithium**: Warehouse receipts continue to decline, pay attention to substantial changes in supply, with a trend strength of 1 [32][35]. - **Industrial Silicon**: Market sentiment is fermenting, pay attention to upward space, with a trend strength of 1 [36][38]. - **Polysilicon**: Market news continues to ferment, with a trend strength of 1 [36][38]. - **PTA**: In the off - season of demand, with a weak unilateral trend [2]. - **MEG**: Low inventory, positive spread arbitrage on dips [2]. - **Styrene**: Spot liquidity is released, weakly oscillating [2]. - **Soda Ash**: Little change in the spot market [5]. - **PVC**: Weakly oscillating [5]. Agricultural Products - **Palm Oil**: Doubts about production recovery in the origin, waiting for the evolution of contradictions [5]. - **Soybean Oil**: Lack of driving force due to insufficient weather speculation on US soybeans [5]. - **Soybean Meal**: Export expectations improve, US soybeans rise, and domestic soybean meal rebounds [5]. - **Corn**: Pay attention to the spot [5]. - **Sugar**: Waiting for guidance from super - expected information [5]. - **Cotton**: Futures prices hit a new high this year [5]. - **Eggs**: The expectation of a rebound in the peak season is fulfilled, and the sentiment of culling declines [5]. - **Pigs**: Sentiment has changed [5]. - **Peanuts**: There is support below [5]. Others - **Shipping**: For the container shipping index (European line), hold 10 - 12 and 10 - 02 reverse spreads lightly [5]. - **Logs**: Oscillate repeatedly, with a trend strength of 0 [58][61].