Natural Gas Prices: Domestic LNG factory prices declined month-over-month, while US, UK, and Canadian natural gas futures prices also dropped month-over-month. As of August 8, domestic LNG factory prices stood at 4,220.00 yuan per ton, declining by 205 yuan per ton month-over-month, representing a decrease of 4.63%. US NYMEX natural gas futures closed at $3.00 per million British thermal units, down 6.55% month-over-month. UK natural gas futures prices reached 79.53 pence per therm, declining 2.67% month-over-month. Canadian natural gas futures prices stood at 0.92 Canadian dollars per gigajoule, dropping 38.93% month-over-month.

Supply, Demand and Inventory: China's natural gas production in July showed a significant month-over-month decline. European natural gas inventory levels increased substantially month-over-month but declined significantly year-over-year. US natural gas inventory levels rose both month-over-month and year-over-year. In July, China's monthly natural gas production totaled 537,720.00 tons, decreasing by 65,690.00 tons compared to the previous month, representing a decline of 10.89%. As of August 8, European natural gas inventory reached 80.907 billion kilowatt-hours, increasing by 11.099 billion kilowatt-hours month-over-month, an increase of 15.90%. Year-over-year, it decreased by 17.999 billion kilowatt-hours, a decline of 18.20%. US liquefied natural gas/liquefied petroleum gas inventory stood at 190,026 thousand barrels, rising by 10,969 thousand barrels month-over-month, an increase of 6.13%, and up 11,854 thousand barrels year-over-year, an increase of 6.65%.

Import and Export: European natural gas cumulative imports in June declined month-over-month; European cumulative imports of natural gas from Russia in June decreased both month-over-month and year-over-year; China's natural gas imports in July increased month-over-month. In June, European natural gas cumulative imports totaled 175,158.71 million cubic meters, declining 0.23% month-over-month. European cumulative imports of natural gas from Russia reached 7,261.10 million cubic meters, declining 20.08% month-over-month and 57.40% year-over-year. In July, China's natural gas imports totaled 10.6318 million tons, increasing by 0.863 million tons compared to the previous month, representing an increase of 0.82%.

Conclusion: As of August 8, domestic LNG factory prices declined month-over-month, while US, UK, and Canadian natural gas futures prices also dropped month-over-month. China's natural gas production in July showed a significant month-over-month decline. As of August 8, US natural gas inventory levels increased month-over-month, while European natural gas inventory levels surged month-over-month. China's natural gas imports in July increased month-over-month.

Risk Warning: Geopolitical risks; risks of significant energy price volatility; risks of demand falling short of expectations.