Report Industry Investment Rating - Not provided in the given content Core Viewpoints - The disk oscillated and declined, with the basis at -588 (+457), the 5 - 6 month spread at 193 (+31), and 1300 lots of warehouse receipts (-1800). The cheapest deliverable was Shandong ether - post 6080 (+130). [1] - The conflict between the US and Iran shows no sign of cooling, the US terminal operation is at full capacity, and the inventory in April still has support, but the subsequent supply shortage may become more prominent. [1] - There may be measures to ensure people's livelihood in China, the PP - PG spread continues to widen, but the current valuation is not low, and there may be negative feedback from the terminal, so it is not advisable to chase the high. [1] - The valuation of the PG 5 - 6 month spread is not low, and short - term geopolitical news has a large impact, so it is recommended to wait and see. [1] Summary by Related Catalogs Daily Market - On March 31, the PG2605 contract closed at 6339 (-267) at 3 pm, with a 5 - 6 month spread of 139 (-31) and 0 warehouse receipts (-1300). The night session closed at 6501 (+162), with a 5 - 6 month spread of 166 (+27). [1] - Constrained by the successive decline of the related oil product market, the refinery's willingness to support the market is not strong. Shandong civil gas was at 6370 (-81), Shandong ether - post at 6510 (-40), Shandong propane at 6807 (-25), and Longkou Port propane at 7500 (+0). [1] Weekly Viewpoints - The basis was -588 (+457), the 5 - 6 month spread was 193 (+31), and there were 1300 lots of warehouse receipts (-1800). The cheapest deliverable was Shandong ether - post 6080 (+130). Shandong civil gas was at 6100 (+110), East China civil gas at 7065 (+876), and South China civil gas at 7205 (+905). [1] - The FEI month spread was 104 US dollars (-8), the oil - gas ratio oscillated, and the internal and external PG - FEI c2 reached 156 (+13). The South China CP propane arrival discount was 368 (-133), and the FOB discounts of AFEI, US Gulf, and Middle East propane were 45 (-5), 182 (-91), and 245 (+245) respectively. The FEI - MOPJ spread narrowed to -122 (-46). [1] - Propane import profit increased significantly. The spot profit of Chinese PDH - made propylene weakened to 734 (-611); the paper goods of PDH - made PP in East and South China oscillated significantly. [1] - The port inventory ratio was 36.08% (-0.24pct), the arrival volume was 52.8 tons (-18.27%), the factory storage capacity utilization was 24.92% (-1.13pct), and the external release was 51.78 tons (-3.36%). [1] - The PDH operating rate was 63.6% (-2.03pct); the utilization rate of alkylated oil production capacity was 38.6% (+0pct); the MTBE operating rate was 67.3% (+0.76pct); the MTBE export order was 0 tons (-4.5). [1]

Investment Rating - The report maintains a "Positive" outlook for the basic chemical industry [5] Core Insights - The geopolitical situation in the Middle East has significantly impacted the chemical industry, with supply shortages and price increases expected to continue [10][12] - The report anticipates that the current conflict will lead to a long-term shift in the chemical industry, with potential growth opportunities for Chinese companies in the Middle East [33] Summary by Sections 1. Impact of Middle East Changes on the Chemical Industry - The report highlights that the Middle East conflict has led to a near blockade of the Strait of Hormuz, causing a surge in petrochemical raw material prices [10][12] - The impact of this conflict on petrochemical supply is expected to be more severe than the 2022 Russia-Ukraine conflict [10] 2. Short-term: Supply Shortages - The conflict has resulted in a hard supply gap for petrochemical raw materials, with significant price increases for LNG and propane [12][16] - The price gap for ethylene has reached levels comparable to the previous economic cycle in 2021, indicating a severe supply contraction [12][16] 3. Mid-term: Enhanced Competitive Advantage - The report suggests that rising natural gas prices will further widen the competitive gap in the global chemical industry, particularly affecting European, Japanese, and Korean companies [20][22] - The shift towards green energy is expected to accelerate, with increased investment in renewable energy sources [31] 4. Long-term: Opportunities in the Middle East - The report posits that the Middle East could become a new growth area for Chinese chemical companies, as evidenced by recent successful bids for oil and gas exploration blocks by Chinese firms in Iraq [33][34] - The geopolitical landscape is shifting, with potential for increased collaboration between Gulf countries and China, moving beyond economic interests to political and security partnerships [37] 5. Investment Recommendations - Short-term investment targets include Baofeng Energy, Satellite Chemical, and Wanhua Chemical, with a focus on companies that can benefit from supply constraints [39] - Mid-term recommendations highlight Wanhua Chemical and Hualu Hengsheng as key players, while long-term prospects include Rongsheng Petrochemical and Intercontinental Oil & Gas, which have established operations in the Middle East [41]

Report Summary 1. Report's Industry Investment Rating No relevant information provided. 2. Core View The contradiction on the supply side of LPG is gradually accumulating, and spot prices have generally risen. The unclear situation in the Middle East has led to a low number of oil tankers passing through the Strait of Hormuz, and the impact on LPG supply is gradually being realized. The arrival prices continue to rise, and domestic spot prices in various regions have generally increased. Before the substantial recovery of Middle East logistics, the LPG supply gap will persist and its impact will gradually accumulate, and downstream chemical plants will face the pressure of passive production cuts due to insufficient raw materials. Although there is room for growth in US exports, it cannot fully offset the Middle East gap, and attention should be paid to the potential negotiation progress between Iran and the United States [1]. 3. Summary by Related Catalogs Market Analysis - On March 30, the regional prices were as follows: Shandong market, 6400 - 6450 yuan/ton; Northeast market, 5900 - 6250 yuan/ton; North China market, 6250 - 6570 yuan/ton; East China market, 6800 - 7400 yuan/ton; Yangtze River market, 6730 - 6960 yuan/ton; Northwest market, 5750 - 5900 yuan/ton; South China market, 7200 - 7450 yuan/ton [1]. - In the second half of April 2026, the CIF prices of propane and butane for frozen cargoes in East China were both 1070 US dollars/ton, up 16 US dollars/ton. The RMB - converted prices of propane and butane were both 8154 yuan/ton, up 131 yuan/ton. In South China, the CIF prices of propane and butane for frozen cargoes were also 1070 US dollars/ton, up 16 US dollars/ton, and the RMB - converted prices were both 8154 yuan/ton, up 131 yuan/ton [1]. Strategy - Unilateral: Short - term violent fluctuations, mainly on the sidelines in the short term. - Inter - period: None. - Cross - variety: None. - Spot - futures: None. - Options: None [2]

1. Report Industry Investment Rating - Not provided in the given content 2. Core Viewpoints - The disk fluctuates and declines, with the latest basis at -588 (+457) and the 5 - 6 month spread at 193 (+31) [1] - The conflict between the US and Iran shows no sign of cooling, US terminal operations are at full capacity, April inventory is still supported, but subsequent supply shortages may become more prominent [1] - There may be measures to ensure people's livelihoods in China, the PP - PG spread continues to widen, but the current valuation is not low and there may be negative feedback from the terminal, so it is not advisable to chase the high [1] - The valuation of the PG 5 - 6 month spread is not low, short - term geopolitical news has a large impact, and it is recommended to wait and see [1] 3. Summary by Relevant Catalogs 3.1 Daily Quotes - Shandong civil LPG is 6430 (+0), Shandong ether - after LPG is 6550 (+50), Shandong propane is 6832 (+276), and Longkou Port propane is 7500 (+0) [1] - Platts assesses the CP South China CIF CFR discount at 358.5 (+20) at 6:30 pm on Monday, and the CFR price is 1013.5 (+35) [1] - At 11 pm on Monday, FEI is reported at 925.5 (+29.5), the 4 - 5 month spread is 105 (+3), and the 5 - 6 month spread is 77 (+9) [1] - PG - FEI05 internal - external spread is 136.8 (-37.9), and FEI - MOPJ is - 124 (-11) [1] 3.2 Weekly Views - The basis is -588 (+457), the 5 - 6 month spread is 193 (+31), and the number of warehouse receipts is 1300 (-1800) [1] - The cheapest deliverable is Shandong ether - after LPG at 6080 (+130) [1] - Shandong civil LPG is 6100 (+110), East China civil LPG is 7065 (+876), and South China civil LPG is 7205 (+905) [1] - The FEI month spread is 104 US dollars (-8), and the oil - gas ratio fluctuates [1] - The internal - external PG - FEI c2 is 156 (+13) [1] - The South China CP propane CIF discount is 368 (-133), and the FOB discounts of AFEI, US Gulf, and Middle East propane are 45 (-5), 182 (-91), and 245 (+245) respectively [1] - The FEI - MOPJ spread narrows to -122 (-46) [1] - Propane import profit rises significantly [1] - The spot profit of China's PDH - made propylene weakens to 734 (-611), and the paper futures of PDH - made PP in East and South China fluctuate significantly [1] - The port inventory ratio is 36.08% (-0.24pct), the arrival volume is 52.8 tons (-18.27%), the factory storage capacity is 24.92% (-1.13pct), and the external release is 51.78 tons (-3.36%) [1] - PDH operating rate is 63.6% (-2.03pct), alkylated oil capacity utilization rate is 38.6% (+0pct), MTBE operating rate is 67.3% (+0.76pct), and MTBE export orders are 0 tons (-4.5) [1]

Group 1: Report Industry Investment Rating - Not mentioned in the provided content Group 2: Core Viewpoints of the Report - The futures price fluctuates and declines, with the latest basis at -588 (+457), and the May - June spread at 193 (+31). The number of warehouse receipts is 1300 lots (-1800), with Jingbo having a reduction of 1800. The cheapest deliverable is Shandong ether - after carbon four at 6080 (+130). Shandong civil LPG is at 6100 (+110), East China civil LPG at 7065 (+876), and South China civil LPG at 7205 (+905). The FEI monthly spread is 104 US dollars (-8), and the oil - gas ratio fluctuates. The internal and external PG - FEI c2 reaches 156 (+13). The South China CP propane arrival discount is 368 (-133), and the FOB discounts for AFEI, US Gulf, and Middle East propane are 45 (-5), 182 (-91), and 245 (+245) respectively. The FEI - MOPJ spread narrows, with the latest at -122 (-46). Propane import profit rises significantly. The spot profit of China's PDH - made propylene weakens, with the latest at 734 (-611); the paper goods of PDH - made PP in East and South China fluctuate significantly. The port inventory ratio is 36.08% (-0.24pct), the arrival volume is 52.8 tons (-18.27%), the factory storage capacity utilization is 24.92% (-1.13pct), and the external release is 51.78 tons (-3.36%). The PDH operating rate is 63.6% (-2.03pct); the alkylation oil capacity utilization rate is 38.6% (+0pct); the MTBE operating rate is 67.3% (+0.76pct); the MTBE export order is 0 tons (-4.5). Overall, the conflict between the US and Iran shows no sign of cooling, the US terminal operation is at full capacity, and the inventory in April still has support, but the subsequent supply shortage may become more prominent. There may be measures to ensure people's livelihoods in China, the PP - PG spread continues to widen, but the current valuation is not low and there may be negative feedback from the terminal, so it is not advisable to chase the high. The PG May - June spread valuation is not low, and short - term geopolitical news has a large impact, so it is recommended to wait and see [1] Group 3: Summary by Relevant Catalogs Market Data - From March 23 - 27, 2026, the prices of South China LPG, East China LPG, Shandong LPG, propane CFR South China, propane CIF Japan, CP forecast contract price, Shandong ether - after carbon four, Shandong alkylation oil, paper import profit, and main basis are presented with daily data and their corresponding changes. For example, on March 23, South China LPG was 7080, and on March 27, it was 7205, with a daily change of -15 on March 27 compared to the previous day [1] Weekly Outlook - Futures price: Fluctuates and declines, with the basis and month - spread changes as mentioned above [1] - Warehouse receipts: 1300 lots (-1800), with Jingbo having a reduction of 1800 [1] - Deliverable: The cheapest is Shandong ether - after carbon four at 6080 (+130) [1] - Civil LPG prices: Shandong at 6100 (+110), East China at 7065 (+876), South China at 7205 (+905) [1] - FEI - related data: FEI monthly spread is 104 US dollars (-8), FEI - MOPJ spread is -122 (-46) [1] - Oil - gas ratio: Fluctuates [1] - PG - FEI c2: Reaches 156 (+13) [1] - Propane discounts: South China CP propane arrival discount is 368 (-133), AFEI, US Gulf, and Middle East propane FOB discounts are 45 (-5), 182 (-91), and 245 (+245) respectively [1] - Profit situation: Propane import profit rises significantly; China's PDH - made propylene spot profit weakens to 734 (-611); the paper goods of PDH - made PP in East and South China fluctuate significantly [1] - Inventory and operation data: Port inventory ratio is 36.08% (-0.24pct), arrival volume is 52.8 tons (-18.27%), factory storage capacity utilization is 24.92% (-1.13pct), external release is 51.78 tons (-3.36%). PDH operating rate is 63.6% (-2.03pct), alkylation oil capacity utilization rate is 38.6% (+0pct), MTBE operating rate is 67.3% (+0.76pct), MTBE export order is 0 tons (-4.5) [1] - Market judgment: The US - Iran conflict shows no sign of cooling, the US terminal operation is at full capacity, April inventory has support, but subsequent supply shortage may be more prominent. There may be measures to ensure people's livelihoods in China, the PP - PG spread continues to widen, but the current valuation is not low and there may be negative feedback from the terminal, so it is not advisable to chase the high. The PG May - June spread valuation is not low, and short - term geopolitical news has a large impact, so it is recommended to wait and see [1]

Report Summary 1. Report Industry Investment Rating No relevant content provided. 2. Core View of the Report The supply gap of LPG may continue to accumulate, and the arrival cost has rebounded again. The market's expectation of the easing of the Iranian situation has increased, leading to a decline in crude oil and internal and external prices. However, the war has not really subsided, and the number of oil tankers passing through the Strait of Hormuz remains low, indicating that the impact on LPG supply continues to spread. The arrival price rebounded again yesterday. The spot prices in various domestic regions showed mixed trends yesterday. The mainstream transaction prices of civil LPG and ether-based C4 in Shandong decreased compared with the previous working day, and the sales volume of manufacturers was poor, with the market sentiment declining. Before the substantial recovery of the Middle East logistics, the LPG supply gap will continue to exist and its impact will gradually accumulate. Attention should be paid to the potential negotiation progress between Iran and the United States [1]. 3. Summary by Relevant Catalogs Market Analysis - On March 26, the regional prices were as follows: Shandong market, 6180 - 6250; Northeast market, 5620 - 6010; North China market, 6200 - 6350; East China market, 6700 - 7350; Yangtze River market, 6840 - 6960; Northwest market, 5700 - 5900; South China market, 7150 - 7400 [1]. - In the second half of April 2026, the arrival price of frozen LPG in East China was 1050 US dollars/ton for propane and 1050 US dollars/ton for butane, both up 70 US dollars/ton. The RMB - equivalent price was 7984 yuan/ton for propane and 7984 yuan/ton for butane, both up 549 yuan/ton [1]. - In the second half of April 2026, the arrival price of frozen LPG in South China was 1050 US dollars/ton for propane and 1050 US dollars/ton for butane, both up 70 US dollars/ton. The RMB - equivalent price was 7984 yuan/ton for propane and 7984 yuan/ton for butane, both up 549 yuan/ton [1]. Strategy - Unilateral: Short - term sharp fluctuations, mainly on the sidelines in the short term. - Inter - period: None. - Cross - variety: None. - Spot - futures: None. - Options: None [2].

Group 1: Report Industry Investment Rating - No information provided Group 2: Core Views of the Report - The rise in the Middle East situation, attacks on Iranian and Qatari gas fields, and compressor leaks have pushed up the PG futures market significantly. The current basis is weak, and the domestic market is in a contradiction between weak reality and strong expectations. The 4 - 5 month spread in the domestic market is in a delivery game and is expected to fluctuate greatly. In the future, there will likely be a shortage of goods in the second half of April in China, and if the Strait is interrupted for a longer time, the international market will face a more serious shortage, and the external market will remain strong [1] Group 3: Summary of Relevant Catalogs 1. Price Data - **Daily Price Changes**: From March 20 - 26, 2026, the prices of liquefied gas in South China, East China, and Shandong showed an overall upward trend. For example, the price of South China liquefied gas rose from 6300 on March 20 to 7220 on March 26 [1] - **Contract Data**: On March 26, the PG2605 contract closed at 6541 (-53) at 3 pm, with a 5 - 6 month spread of 199 (-43). The number of warrants was 1300 (-1800). The night session closed at 6550 (+9), with a 5 - 6 month spread of 14〈-11〉 [1] 2. Fundamental Data - **Inventory and Capacity Utilization**: Port inventory ratio is 35.84% (+0.79pct), enterprise storage capacity utilization is 26.05% (+1.11 pct), and PDH operating rate is 65.63% (+2.4pct) [1] - **Profit Situation**: Propylene spot profit has weakened slightly, and the paper - making profit of PDH to PP in East and South China has declined [1] 3. Spread and Basis Data - **Basis**: The latest basis is - 1057 (-736) [1] - **Month - to - Month Spread**: The 4 - 5 month spread is 64 (-68), and the FEI month - to - month spread is 112 US dollars (+28) [1] - **Price Difference**: The PG - FEI c1 is 35 (-15.5), the South China CP propane arrival discount is 501 (+108), and the FEI - MOPI price difference is - 76 (+52) [1]

1. Report Industry Investment Rating - Not provided in the given content 2. Core View of the Report - The current Iran situation is a crucial factor influencing the prices of olefin products. The market is closely watching the progress of the US - Iran peace talks. As the US has set harsh conditions and Iran has not accepted them, the situation remains in a "fighting while talking" stage. After the price of propylene declined, it entered a consolidation phase. From the fundamental perspective of propylene, the supply of raw - material propane has tightened again, increasing the expectation of PDH unit maintenance. The supply of propylene is expected to tighten further. On the demand side, downstream enterprises mainly replenish inventory at low prices, but some have reduced their production due to profit issues. In the short term, the supply - demand situation of propylene remains tight, and there is still support for its price before the Strait of Hormuz is open to navigation [2] 3. Summary by Relevant Catalogs I. Propylene Basis Structure - The report includes figures such as the closing price of the propylene main contract, the East China basis of propylene, the Shandong basis of propylene, the price difference between the propylene futures 05 - 06 contracts, the price difference between the propylene 05 - 07 contracts, and the market prices of propylene in East China, Shandong, and South China [6][11][14] II. Propylene Production Profit and Capacity Utilization - Figures cover the difference between propylene CFR in China and naphtha CFR in Japan, propylene capacity utilization, PDH production gross profit of propylene, PDH capacity utilization of propylene, MTO production gross profit of propylene, methanol - to - olefin capacity utilization, propylene naphtha cracking production gross profit, crude oil main refinery capacity utilization, the difference between South Korea FOB and China CFR, and propylene import profit [20][23][27] III. Propylene Downstream Profit and Capacity Utilization - It involves the production profit and capacity utilization of PP powder, propylene oxide, n - butanol, octanol, acrylic acid, acrylonitrile, and phenol - acetone [33][34][35] IV. Propylene Inventory - The report shows the in - plant inventory of propylene and the in - plant inventory of PP powder [56][57]

Group 1: Report Industry Investment Rating - No relevant content provided Group 2: Core Viewpoints of the Report - The spot price is running weakly, and macro - risks still exist. With the marginal easing of the Middle East situation, the prices of outer - market crude oil and LPG have declined, and the PG futures price has fallen from a high. The domestic spot prices in various regions showed mixed trends yesterday. Due to the easing of the Middle East situation and the outer - market trend, the manufacturers of civil gas and ether - post carbon four have offered discounts to increase sales. Although there have been significant pull - backs in both the inner and outer markets, the situation in Iran remains unclear, the Strait of Hormuz has not resumed navigation, and the news is constantly changing. In a high - volatility market, both long and short positions lack a safety margin, so caution is needed [1] - The short - term strategy for unilateral trading is to mainly wait and see due to short - term sharp fluctuations. There are no strategies for inter - period, inter - variety, spot - futures, and options trading [2] Group 3: Summary Based on Related Catalogs Market Analysis - On March 25th, the regional prices were as follows: Shandong market, 6380 - 6500; Northeast market, 5620 - 6010; North China market, 6200 - 6450; East China market, 6700 - 7350; Yangtze River area market, 6840 - 6960; Northwest market, 5700 - 6015; South China market, 7100 - 7300 [1] - In the second half of April 2026, the CIF price of frozen propane in East China was 980 US dollars/ton, a decrease of 100 US dollars/ton, and the price of butane was 980 US dollars/ton, a decrease of 100 US dollars/ton. In RMB terms, the price of propane was 7435 yuan/ton, a decrease of 762 yuan/ton, and the price of butane was 7435 yuan/ton, a decrease of 762 yuan/ton. The same price changes occurred in South China [1] Strategy - Unilateral: Short - term sharp fluctuations, mainly wait and see in the short term [2] - Inter - period: None [2] - Inter - variety: None [2] - Spot - futures: None [2] - Options: None [2]

Report Summary 1. Report Industry Investment Rating - Not provided in the given content 2. Core Viewpoints - The LPG market is in a contradiction between weak reality and strong expectations. Currently, the basis is weak (-1000), domestic refinery gas is sufficient in the short term, and there are intentions to deliver warehouse receipts from some warehouses. The 4 - 5 month spread on the domestic market is in a delivery game and is expected to fluctuate greatly. Looking ahead, a shortage of LPG in China in the second half of April is inevitable. If the Strait is interrupted for a longer time, the international market will face a more serious shortage, and the civil LPG demand gap will be difficult to make up, so the overseas market will remain strong [1]. 3. Summary by Relevant Catalogs 3.1 Daily Data Changes - From March 19 - 25, 2026, prices of LPG in South China, East China, and Shandong showed an upward trend. For example, South China LPG increased from 6215 on March 19 to 7210 on March 25. Paper import profit increased from -3111 on March 19 to 1 on March 25, and the main basis changed from -392 to 120 [1]. - On March 25, the PG2605 contract closed at 6550 (-286) at 3 pm, with a 5 - 6 month spread of 242 (+47), and the number of warehouse receipts was 3100 (+0). The night - session closed at 6565 (-29), and the 5 - 6 month spread was 225 (-17) [1]. - Shandong civil LPG price was 6470 (-80), Shandong ether - post carbon four was 6470 (+0), Shandong propane was 6870 (-80), and Longkou Port propane was 7500 (+0) [1]. 3.2 Weekly Data Changes - Due to the escalation of the Middle East situation, attacks on gas fields in Iran and Qatar, and a compressor leak at Targe, the PG futures price rose significantly. The basis was -1057 (-736), and the 4 - 5 month spread was 64 (-68) [1]. - The number of warehouse receipts was 3100 (+8), with Wanhua increasing by 1300, Jingbo decreasing by 428, and Yunda decreasing by 880. The cheapest deliverable product was Shandong ether - post at 5950 (+520) [1]. - The FEI month spread was 112 US dollars (+28), the oil - gas price ratio decreased, and the domestic and international PG - FEI c1 dropped to 35 (-15.5) [1]. - The on - shore discount of South China CP propane was 501 (+108), and the FOB discounts of AFEI, US Gulf, and Middle East propane were 50 (-54.75), 273.5 (+72.9), and 0 (+0) respectively. The FEI - MOPJ spread was -76 (+52) [1]. - The spot profit of domestic PDH - made propylene weakened slightly, and the paper profit of PDH - made PP in East and South China decreased. The port inventory ratio was 35.84% (+0.79 pct), the enterprise storage capacity utilization was 26.05% (+1.11 pct), and the PDH operating rate was 65.63% (+2.4 pct) [1].