Report Summary 1) Report Industry Investment Rating No investment rating information is provided in the report. 2) Core Viewpoints - The overall PG market is in a weak and volatile state, with small changes in the basis (349), a slight strengthening of the 8 - 9 month spread (97), and the cheapest deliverable being East China civil gas at 4529. The import cost has dropped significantly, the FEI offshore premium has declined, and the CP propane - butane arrival premium has strengthened. The overseas market month spread has weakened significantly, and the oil - gas ratio has increased. The domestic - foreign price difference has strengthened, with PG - CP reaching 22.5 (+26.5) and FEI - CP reaching - 22.75 (+35), and the US - Asia arbitrage window is closed [1]. - Fundamentally, domestic port inventories, factory inventories, and external sales volumes are basically flat. PDH operating rates have dropped to 65.49% (-5.05pct) with improved profits, and it is expected that PDH operating rates will increase slightly in the future. The alkylation operating rate remains flat, and it is expected that the planned restart of some units will drive up the subsequent operating rate [1]. - Shandong civil gas first declined and then rose (4610). With low domestic gas supply, sufficient arrivals, weak combustion demand, and support from chemical demand, it is expected to generally fluctuate. East China civil gas declined (4529), with an average overall trading atmosphere. Terminals and refineries reduced prices to sell goods. It is expected that the East China market will remain weak due to increased arrivals and the off - season of demand. South China civil gas fluctuated downward (4660) mainly due to the decline in import costs and weak combustion demand. It is expected that the subsequent low terminal demand will continue to drag down the market [1]. - Currently, prices have dropped to a relatively low level. Although chemical demand is high, high temperatures and weak terminal demand will suppress subsequent price increases [1]. 3) Summary by Relevant Content Market Data - **Price Changes**: From July 2 - 8, 2025, South China LPG decreased from 4690 to 4630, East China LPG decreased from 4582 to 4494, and Shandong LPG remained at 4590 on July 8. Propane CFR South China had some fluctuations, and propane CIF Japan increased from 517 to 551. MB propane spot increased from 73 to 75, and CP forecast contract price increased from 556 to 561. The paper import profit showed a downward trend, and the main contract basis decreased by 16 on July 8 compared to the previous day [1]. - **Spread Changes**: The 08 - 09 spread of PG was 96 at one point and then the 8 - 9 spread strengthened slightly to 97. PG - CP reached 22.5 (+26.5), FEI - CP reached - 22.75 (+35), and the US - Asia arbitrage window was closed [1]. Industry Operation - **PDH**: The PDH operating rate dropped to 65.49% (-5.05pct), and profits improved. It is expected that the PDH operating rate will increase slightly in the future [1]. - **Alkylation**: The alkylation operating rate remained flat, and it is expected that the planned restart of some units will drive up the subsequent operating rate [1]. Regional Market Analysis - **Shandong**: Shandong civil gas first declined and then rose to 4610. With low domestic gas supply, sufficient arrivals, weak combustion demand, and support from chemical demand, it is expected to generally fluctuate [1]. - **East China**: East China civil gas declined to 4529. The overall trading atmosphere was average, and terminals and refineries reduced prices to sell goods. It is expected that the East China market will remain weak due to increased arrivals and the off - season of demand [1]. - **South China**: South China civil gas fluctuated downward to 4660 mainly due to the decline in import costs and weak combustion demand. It is expected that the subsequent low terminal demand will continue to drag down the market [1].

Report Summary 1) Report Industry Investment Rating No investment rating information is provided in the report. 2) Core View of the Report - Last week, the overall civil gas market was weak. Shandong's civil gas rose due to chemical demand support, while ether - after carbon four declined. The cheapest deliverable was East China civil gas at 4449. The PG futures market oscillated and trended stronger. The basis of the 07 contract weakened to 351, and the monthly spread strengthened significantly. Externally, FEI and MB were basically flat, CP declined, and the oil - gas ratio increased. The internal - external price difference strengthened, especially PG - CP. The US - Asia arbitrage window closed, and freight rates rose slightly. [1] - In terms of inter - variety spreads, the production margin of PDH improved but remained poor. The production profit of FEI was higher than that of PP. The profitability of alkylated oil increased, the profit of gas fractionation and etherification changed little, and the profit of isomerization and etherification increased. FEI - MOPJ decreased, and the naphtha crack spread changed little. [1] - Fundamentally, port inventories increased slightly, and terminals actively offered discounts. Factory inventories increased, and Shandong's factory inventories decreased due to chemical demand support. Arrivals increased (mainly in South China), and external sales increased significantly. It is expected that external sales will continue to increase and arrivals will decline. Chemical demand is expected to be supported in the short term. The PDH operating rate was basically flat and is expected to increase next week (the first - phase PDH of Qingdao Jinneng may resume). Subsequently, the demand for alkylated oil is expected to increase with the recovery of gasoline demand. Next week, several MTBE plants have plans to start production, so the demand for C4 is expected to increase. With rising temperatures, combustion demand is expected to decline. In addition, the number of registered warrants decreased by 565 to 9304 lots. Overall, the fundamentals remain weak. Shandong's chemical demand provides some support, but there is significant supply pressure in other regions and demand continues to be sluggish. [1] 3) Summary by Relevant Directory Daily Changes - In the civil gas market, Shandong remained stable at 4620, East China at 4492, and South China at 4630. Ether - after carbon four remained stable at 4830. The cheapest deliverable was East China civil gas at 4492. The PP price increased, while the profit of PP production from FEI and CP decreased. The PG futures market oscillated and trended upward. The basis of the 07 contract decreased by 11 to 351, and the 07 - 09 monthly spread decreased by 9 to 201. The US - Far East arbitrage window closed. [1] - The daily changes in prices are as follows: propane CFR South China increased by 2 to 595, propane CIF Japan increased by 7 to 561, MB propane spot increased by 1 to 78, CP forecast contract price increased by 4 to 587, and alkylated oil in Shandong increased by 30 to 7750. The paper import profit decreased by 4 to - 268, and the main basis decreased by 11. Other prices remained stable. [1] Weekly View - Last week, the civil gas market was generally weak. Shandong's civil gas rose due to chemical demand support, while ether - after carbon four declined. The PG futures market oscillated and trended stronger. The basis of the 07 contract weakened, and the monthly spread strengthened significantly. Externally, FEI and MB were basically flat, CP declined, and the oil - gas ratio increased. The internal - external price difference strengthened, especially PG - CP. The US - Asia arbitrage window closed, and freight rates rose slightly. [1] - In terms of inter - variety spreads, the production margin of PDH improved but remained poor. The production profit of FEI was higher than that of PP. The profitability of alkylated oil increased, the profit of gas fractionation and etherification changed little, and the profit of isomerization and etherification increased. FEI - MOPJ decreased, and the naphtha crack spread changed little. [1] - Fundamentally, port inventories increased slightly, and terminals actively offered discounts. Factory inventories increased, and Shandong's factory inventories decreased due to chemical demand support. Arrivals increased (mainly in South China), and external sales increased significantly. It is expected that external sales will continue to increase and arrivals will decline. Chemical demand is expected to be supported in the short term. The PDH operating rate was basically flat and is expected to increase next week (the first - phase PDH of Qingdao Jinneng may resume). Subsequently, the demand for alkylated oil is expected to increase with the recovery of gasoline demand. Next week, several MTBE plants have plans to start production, so the demand for C4 is expected to increase. With rising temperatures, combustion demand is expected to decline. In addition, the number of registered warrants decreased by 565 to 9304 lots. Overall, the fundamentals remain weak. Shandong's chemical demand provides some support, but there is significant supply pressure in other regions and demand continues to be sluggish. [1]

Report Summary 1) Report Industry Investment Rating No investment rating information is provided in the report. 2) Core Viewpoints - The fundamentals of the LPG market remain weak. Although the chemical demand in Shandong provides some support, there is significant supply pressure in other regions and demand continues to be sluggish [1]. - It is expected that the external release volume will continue to increase and the inbound volume will decline. Chemical demand is expected to be supported in the short - term, with the PDH operating rate expected to rise next week. The demand for alkylation oil is expected to increase with the recovery of gasoline demand, and the demand for C4 is expected to increase due to the planned start - up of multiple MTBE plants next week. Combustion demand is expected to decline as the temperature rises [1]. 3) Summary by Relevant Contents Daily Changes - In terms of civil gas, the price in Shandong remained stable at 4620, in East China increased by 1 to 4492, and in South China increased by 40 to 4630. The price of ether - after carbon four increased by 20 to 4830. The cheapest deliverable was East China civil gas at 4492 [1]. - The PP price rose, and the profits of PP production from FEI and CP increased. The PG futures price fluctuated upwards. The basis of the 07 contract decreased by 10 to 362, and the spread between the 07 - 09 contracts increased by 7 to 210. The arbitrage window from the US to the Far East was closed [1]. Weekly Views - Last week, the overall civil gas market was weak. Supported by chemical demand, the price in Shandong increased, while the price of ether - after carbon four decreased. The cheapest deliverable was East China civil gas at 4449 [1]. - The PG futures price fluctuated strongly. The basis of the 07 contract weakened to 351, and the spread between contracts strengthened significantly. In the external market, FEI and MB were basically the same, and CP declined; the oil - gas ratio increased. The internal - external price difference strengthened, especially the PG - CP [1]. - The US - Asia arbitrage window was closed, and freight rates increased slightly. Among different product spreads, the production margin of PDH improved but remained poor; the production profit of FEI was higher than that of PP. The profitability of alkylation oil increased, the profit of gas fractionation and etherification changed little, and the profit of isomerization and etherification increased. The FEI - MOPJ decreased, and the naphtha crack spread changed little [1]. - In terms of fundamentals, port inventories increased slightly, and terminals actively offered discounts. Factory inventories increased, and the factory inventories in Shandong decreased due to chemical demand. The arrival volume increased (mainly in South China), and the external release volume increased significantly [1]. - The number of registered warehouse receipts was 9304 lots (- 565) [1].

Report Summary 1. Report Industry Investment Rating - No investment rating information is provided in the report. 2. Core View of the Report - The domestic LPG supply is expected to gradually increase, chemical demand is expected to recover, and combustion demand will continue to decline. Overall, the LPG market may continue its oscillating downward trend [1]. 3. Summary by Relevant Catalog 3.1 Daily Changes - On Thursday, for civil gas, prices in Shandong remained stable at 4490, in East China decreased by 58 to 4523, and in South China remained stable at 4840. For imported gas, prices in East China decreased by 11 to 4979, and in South China increased by 10 to 4960. The price of etherified C4 remained stable at 4740. The lowest price was Shandong civil gas at 4490. The PG futures market showed weak performance, with the basis of the 06 contract strengthening to 309, the 06 - 07 monthly spread remaining unchanged at 54, and the 07 - 09 monthly spread slightly weakening to 130. The arbitrage window from the US to the Far East is closed [1]. 3.2 Weekly Changes - Last week, domestic civil gas prices declined significantly, with prices in South China at 4920 (-3.3%), East China at 4906 (-0.7%), Shandong at 4570 (-4.8%), and Shandong etherified C4 at 4520 (-5.8%). The cheapest deliverable was Shandong etherified C4. The center of gravity of the PG futures market moved slightly downward. The basis of the 06 contract was 256 (-187), the 06 - 07 monthly spread was 81 (-23), and the 07 - 08 monthly spread was 76 (-8). After the tariff easing, the overseas prices increased, with MB at 407 (+23), FEI at 544 (+22.8), and CP slightly rising to 584 (+5.5). The discount of June CP cargo decreased by nearly half, and the FEI discount returned to single - digit positive. The domestic - foreign price difference decreased significantly. The freight rates from the US Gulf to Japan and from the Middle East to the Far East increased slightly, reaching 117 (+7) and 65 (+7) respectively [1]. 3.3 Fundamental Analysis - In terms of fundamentals, high arrival volumes and little change in demand led to inventory accumulation at ports, while factory inventories remained basically unchanged. The domestic LPG commercial volume was 504,100 tons (+4.09%), and the expected increase in commercial volume in the next three weeks is expected to decrease. In terms of chemical demand, the PDH operating rate declined to 57.98% (-1.61), but production margins recovered, and the PDH operating rate is expected to increase slightly next week. The alkylation operating rate was 39.87% (-2.37), the commercial volume was 18,450 (-1,100), and the profit increased significantly to 267 yuan/ton (+1113%), with the operating rate expected to increase slightly next week. Crude oil rebound pushed MTBE prices up from a decline, but due to limited supply, stable exports, manufacturers' intention to hold prices, and increased downstream resistance, MTBE prices are expected to decline slightly. In terms of combustion demand, as the temperature rises, it is expected to decline [1].

Group 1: Report Industry Investment Rating - No information provided Group 2: Core View of the Report - The fundamentals of the LPG market are weak, and the short - term futures market is expected to fluctuate weakly [1] Group 3: Summary by Relevant Catalog Price and Market Conditions - On Friday, for civil LPG, prices in Shandong remained stable at 4780, in East China at 4938, and in South China dropped 50 to 5130; for imported LPG, prices in East China decreased 7 to 5136, and in South China decreased 60 to 5140; the price of ether - post carbon four rose 10 to 4810. The lowest price was Shandong civil LPG at 4780. The PG futures market fluctuated weakly, with the basis of the 06 contract at 433 and the 06 - 07 spread at 104. The US - to - Far - East arbitrage window was closed [1] - Last week, the domestic civil LPG market was weak. Prices in South China rose and then fell; those in East China and Shandong fluctuated weakly; the center of ether - post carbon four prices moved down significantly; the price of the cheapest deliverable (Shandong LPG) was 4800 yuan/ton. The futures market center moved down slightly; the 06 basis fluctuated; the 06 - 07 spread strengthened [1] Supply and Demand - The LPG commodity volume was 48.55 tons (-1.06%), and the external supply is expected to be stable in the next three weeks. The PDH operating rate decreased to 59.59% (-2.76%) due to high import costs and poor downstream demand. The alkylation operating rate remained flat, and production margins turned profitable, with a small expected increase in operating rate. MTBE production decreased, and the profits of gas - fractionation etherification and isomerization etherification were poor [1] External Market - CP and FEI prices rose slightly, while MB prices remained flat. The internal - external price spread fluctuated, with a slight increase in FEI - MB, and little change in FEI - CP and CP - MB. Freight rates from the US Gulf to Japan and from the Middle East to the Far East rose slightly. US C3 inventories were basically flat, exports increased, and the US - to - Far - East arbitrage window was closed. OPEC+ reduced the production cut, and PG supply is expected to increase. CP official prices are expected to fall, and the propane - butane spread is expected to widen [1]

Report Industry Investment Rating - Not provided Core Viewpoints - During the May Day holiday, the decline of the foreign LPG market was less than that of crude oil, and the oil - gas ratio decreased. The official prices of May CP were higher than market expectations, and the increase of CP discount drove up the import cost, providing some support for the propane price. The domestic civil gas price remained stable overall, with the cheapest deliverable product priced at 4,820 yuan/ton. The LPG market is expected to be dominated by weak oscillations [1]. Summary by Relevant Contents Market Price Information - From April 24 to April 30, 2025, the prices of South China LPG, East China LPG, Shandong LPG, propane CFR South China, propane CIF Japan, MB propane spot, CP forecast contract price, Shandong ether - after carbon four, and Shandong alkylated oil showed different trends. The daily change on April 30 showed that the price of propane CFR South China increased by 17, propane CIF Japan decreased by 8, MB propane spot decreased by 9, CP forecast contract price decreased by 9, Shandong ether - after carbon four increased by 50, and the paper import profit decreased by 136, while the主力基差 decreased by 1 [1]. - On May 4, for civil gas, the price in Shandong decreased by 10 to 4,820, remained flat in East China at 4,925, and increased by 90 to 5,180 in South China; for imported gas, the price in East China increased by 15 to 5,158, and in South China increased by 80 to 5,230; the price of ether - after carbon four increased by 50 to 4,970. The lowest price was the civil gas in Shandong at 4,820 [1]. Market Conditions and Trends - Before the holiday, the PG futures market oscillated, with the basis of the 06 contract at 420 and the PG06 - 07 monthly spread at 94, which narrowed. The arbitrage window from the US to the Far East was closed [1]. - Fundamentally, the high arrival volume led to obvious port inventory accumulation; the factory inventory decreased slightly due to upstream price - cutting to clear inventory before the holiday, but the downstream replenishment demand was average. After the holiday, the arrival volume is expected to decline gradually, especially the arrival of US goods. The upstream refinery supply is expected to be stable in the short term, with an expected increase in June. Chemical demand is expected to be average, with weak demand for alkylated oil, limited willingness of factories to increase production in the short term; MTBE is expected to operate weakly overall; some PDH factories may reduce production due to raw material procurement problems [1].