1. Report Industry Investment Rating - Not provided in the given content 2. Core Views - In July, influenced by macro - policies such as "anti - involution and elimination of backward production capacity", black - series coking coal and coke led the rise. Stable - economy policies from meetings boosted the polyolefin futures. After the digestion of positive factors, prices returned to fundamental trading. With multiple new plants coming into operation in July and more to come, the supply - side pressure is high. Currently in the maintenance season, the pressure from new capacity expansion is temporarily offset. OPEC+ production - increase plans dragged down oil prices, weakening cost - side support. Downstream demand is in the seasonal off - season, with limited highlights expected. Mid - and upstream inventories are slowly decreasing, but the total inventory is higher compared to the same period [1][2]. - Domestic new plants: Jilin Petrochemical's 400,000 - ton/year HDPE plant and Yulong Petrochemical's 500,000 - ton/year PP plant were successfully put into operation in July. Many other plants are waiting to start production, indicating continuous growth in domestic polyolefin new - plant capacity. For domestic existing plants, PE maintenance losses are at a high level year - on - year, some PDH plants have restarted, and PDH - made PP plant maintenance has decreased. Overseas, no new plants were put into operation in July, and overseas under - construction plants face many uncertainties and delays may be common. Overseas PE and PP operating rates have decreased slightly. The LLDPE import window is closed, and China's PE and PP imports are continuously decreasing [2]. - In terms of inventory and demand, downstream demand for polyolefins remains in the seasonal off - season, with factories mainly making rigid purchases. The operating rate of PE's downstream agricultural film has a slight rebound, while the demand for packaging film is weak. The operating rate of PP's downstream woven products fluctuates slightly. The demand side is expected to remain weak. Mid - and upstream polyolefin inventories are slowly decreasing, but the total inventory is higher year - on - year [2]. 3. Strategies - Unilateral: Neutral [3] - Inter - delivery: L09 - L01 reverse spread, PP09 - PP01 reverse spread [3] - Inter - variety: Narrow the spread between PP2601 and 3MA2601 [3] 4. Summary by Relevant Catalogs 4.1 Polyolefin Basis Structure - The report provides charts of the main contract trends, basis, and inter - delivery spreads of LL and PP, including LL North China - main contract basis, L1 - L5, L5 - L9, L9 - L1 for LL, and PP East China - main contract basis, PP1 - PP5, PP5 - PP9, PP9 - PP1 for PP [15]. 4.2 Polyolefin Production Plan - Domestic: Multiple plants have been put into operation in 2025, and many are waiting to start production, such as ExxonMobil Huizhou's 500,000 - ton/year LDPE plant. The total planned production capacity of new domestic plants is large, indicating continuous growth in domestic supply [18][20]. - Overseas: Some plants were put into operation in 2025, and many are in the un - started state. Overseas under - construction plants face many uncertainties, and delays may be common [22]. 4.3 Polyolefin Maintenance Plan - PE: The maintenance season of PE plants has ended, and maintenance losses have increased. The report shows historical maintenance data of PE, oil - based PE, coal - based PE, and alkane - based PE [23][36]. - PP: PP plant maintenance losses fluctuate slightly, and the maintenance volume of PDH - made PP plants is still at a high level [36]. 4.4 Polyolefin Monthly Output - In June, domestic PE output was 2.555 million tons, a decrease of 49,000 tons from May. LLDPE output decreased by 44,000 tons, HDPE increased by 27,000 tons, and LDPE decreased by 33,000 tons. Domestic PP output was 3.165 million tons, a decrease of 14,000 tons from May. PP fiber output increased by 12,000 tons, PP homopolymer decreased by 10,000 tons, and PP copolymer remained unchanged [47]. 4.5 Polyolefin Production Profit and Operating Rate - PE: The production profit of oil - based PE is - 130 yuan/ton, and the operating rate is 90.2%, an increase of 6.3% from last month. With the restart of maintenance plants, the operating rate is expected to increase [62]. - PP: The production profit of oil - based PP is - 522 yuan/ton, and that of PDH - made PP is 394 yuan/ton. The PDH - made PP operating rate is rising. The overall PP operating rate is 83.6%, a decrease of 0.6% from last month [62]. 4.6 Polyolefin Non - standard Price Spread and Operating Ratio - PE: The production ratio of LLDPE and HDPE has decreased, while that of LDPE has increased. The operating ratio of LLDPE, HDPE, and LDPE has changed accordingly. The non - standard price spreads between HD injection - LL and LDPE - LLDPE have different trends [69]. - PP: The production ratios of PP fiber and PP copolymer injection have decreased, while that of PP non - standard homopolymer injection has increased. The operating ratios of different PP products have also changed, and the non - standard price spread between PP low - melt copolymer and PP fiber has declined [69]. 4.7 Polyolefin Outer - market Price Spread and Import - Export Profit - LL: The import profit in East China is - 26 yuan/ton, and the export profit is - 69 US dollars/ton. The import window is closed, and China's PE imports are decreasing [85]. - PP: The import profit of PP fiber in East China is - 445 yuan/ton, and the export profit is - 26 US dollars/ton. China's PP imports and exports have decreased [85]. 4.8 Polyolefin Downstream Operating Rate and Downstream Profit - PE: The operating rate of PE's downstream agricultural film is 27%, an increase of 10% from last month. The operating rate of PE's downstream packaging film is 51%, remaining unchanged from last month [109]. - PP: The operating rate of PP's downstream woven products is 41%, a decrease of 1% from last month. The operating rate of PP's downstream BOPP is 58%, a decrease of 1% from last month. The operating rate of PP's downstream injection molding remains unchanged [109]. 4.9 Polyolefin Downstream Inventory and Order Situation - PE: The raw - material inventory days of PE's downstream agricultural film are 8.1 days, remaining unchanged from last month. The order days are 2.8 days, a decrease of 0.1 days from last month. The raw - material inventory days of PE's downstream packaging film are 7.2 days, an increase of 0.1 days from last month. The order days are 8.1 days, an increase of 0.2 days from last month [115]. - PP: The raw - material inventory days of PP's downstream BOPP are 9.1 days, a decrease of 0.4 days from last month. The finished - product inventory days are 10.6 days, a decrease of 0.2 days from last month. The order days are 8.7 days, a decrease of 0.3 days from last month. The raw - material inventory days of PP's downstream woven products are 6.7 days, a decrease of 0.6 days from last month. The finished - product inventory days are 6.1 days, a decrease of 0.3 days from last month. The order days are 6.9 days, a decrease of 0.6 days from last month [115]. 4.10 Polyolefin Actual Inventory - The upstream petrochemical inventory is 750,000 tons, an increase of 30,000 tons from last month. As the downstream is still in the off - season in August, the inventory is expected to increase slightly [130].

Investment Rating - The report maintains a "Weaker than Market" rating for the U.S. stock market [1] Core Insights - The U.S. stock market experienced a sudden pullback influenced by non-farm employment data, with the S&P 500 declining by 2.4% and the Nasdaq by 2.2% [3] - Among sectors, large-cap value stocks outperformed large-cap growth and small-cap stocks, indicating a preference for stability in turbulent market conditions [3] - The report highlights that three sectors saw gains while 21 sectors faced declines, with utilities, food and staples retailing, and media and entertainment being the only sectors to rise [3] Summary by Sections Price Trends - The S&P 500 fell by 2.4% and the Nasdaq by 2.2% this week, with large-cap value stocks declining by 1.8% compared to a 3.1% drop in large-cap growth stocks [3] - Utilities (+1.6%), food and staples retailing (+0.9%), and media and entertainment (+0.2%) were the only sectors to increase, while transportation (-5.9%), materials (-5.1%), and retail (-4.8%) faced the largest declines [3] Fund Flows - The estimated fund flow for S&P 500 constituents was -$16.95 billion this week, a significant increase from the previous week's -$2.2 billion [4] - Media and entertainment (+$1.59 billion), utilities (+$0.27 billion), and food and staples retailing (+$0.042 billion) saw inflows, while healthcare equipment and services (-$3.47 billion) and financials (-$4.15 billion) experienced the largest outflows [4] Earnings Forecast - The report indicates a 0.6% upward adjustment in the 12-month EPS forecast for S&P 500 constituents, with 18 sectors seeing an increase and 5 sectors experiencing downgrades [5] - Retail (+3.3%), media and entertainment (+2.0%), and technology hardware (+1.5%) led the upward revisions, while healthcare equipment and services faced a significant downgrade of -3.6% [5]

Group 1 - China is actively supporting open cooperation and attracting foreign investment, as evidenced by events like the Chain Expo and the upcoming Import Expo [1] - Henkel's investment in China includes the acquisition of a factory in Suzhou and the launch of a new factory in Yantai, with a total investment of approximately 900 million RMB [1] - The resilience of the Chinese market continues to encourage multinational companies to invest, as seen with the recent 500 million RMB investment by the German company Voith in Suzhou [1] Group 2 - The potential of China's green economy is attracting global investors, with Schneider Electric emphasizing the importance of digitalization and low-carbon initiatives [2] - Schneider Electric has established 21 "zero-carbon factories" in China, significantly reducing carbon emissions through digital technologies [2] - ExxonMobil's Huizhou ethylene project, with a total investment of 10 billion USD, has commenced production using green technologies to reduce nitrogen oxide emissions by 50% and greenhouse gas emissions by 35% [2] Group 3 - The Huizhou project will produce high-value chemical raw materials for various industries, highlighting China's role as a key player in technology innovation and global standards [3] - Danfoss views green initiatives as a common language and a significant driver of growth in China-EU trade, with strong growth expected in sectors like data centers and energy storage [3]

Group 1 - Multiple multinational companies are increasing their investments in the Chinese market, supported by events like the Chain Expo and the upcoming Import Expo [1] - Henkel has made significant investments in China, including the acquisition of a factory in Suzhou and the launch of a new factory in Yantai with a total investment of approximately 900 million RMB [1] - The resilience of the Chinese market amidst global economic uncertainties continues to attract foreign investment [1] Group 2 - Schneider Electric emphasizes the importance of digitalization and green low-carbon initiatives, with 21 out of 30 factories in China achieving "zero carbon" status [2] - The Huizhou ethylene project by ExxonMobil, with a total investment of 10 billion USD, has commenced production, utilizing green technologies to significantly reduce emissions [2] - The project will produce high-value chemical raw materials for various industries, showcasing China's role as a key player in technological innovation and global standards [3] Group 3 - Danfoss highlights the growth opportunities in China’s market for green solutions, with strong growth expected in sectors like data centers and semiconductors in 2024 [3] - The ongoing industrial transformation in China is creating new development opportunities for various industries focused on sustainability [3]

ExxonMobil and Chevron reported much lower second-quarter profits as the price of oil slumped. https://t.co/fvTFF5mUeB ...

Project Development - Exxon Mobil's plan to construct the world's largest low-carbon hydrogen plant in Texas might encounter delays [1] Policy Impact - Congressional actions to reduce incentives within President Trump's tax and spending package could affect the project [1]

Core Insights - Exxon Mobil Corporation (XOM) reported Q2 2025 earnings per share of $1.64, exceeding the Zacks Consensus Estimate of $1.49, but down from $2.14 year-over-year [1][9] - Total revenues for the quarter were $81.5 billion, missing the Zacks Consensus Estimate of $82.8 billion and declining from $93.06 billion a year ago [1] Operational Performance - Upstream segment earnings (excluding identified items) were $5.40 billion, down from $7.1 billion year-over-year, primarily due to lower crude oil and natural gas prices [3] - U.S. operations reported a profit of $1.21 billion, down from $2.43 billion in the same quarter last year, while non-U.S. operations generated $4.19 billion, compared to $4.64 billion a year ago [3] Production Metrics - Average production was 4,630 thousand barrels of oil equivalent per day (MBoe/d), an increase from 4,358 MBoe/d a year ago, but below the estimate of 4,651.1 MBoe/d [4] - Liquids production rose to 3,259 MBbls/d from 2,984 MBbls/d in the prior-year quarter, surpassing the estimate of 3,230.2 MBbls/d, driven by higher production in the U.S. and Australia/Oceania [5] - Natural gas production totaled 8,219 million cubic feet per day (Mmcf/d), slightly down from 8,243 Mmcf/d a year ago, and below the estimate of 8,525.3 Mmcf/d [5] Price Realization - Crude price realization in the U.S. was $62.58 per barrel, down from $79 year-over-year and missing the estimate of $62.78 [6] - Non-U.S. crude price realization decreased to $62.01 per barrel from $77.60 in the prior-year quarter, with an estimate of $59.94 [6] - Natural gas prices in the U.S. increased to $2.41 per thousand cubic feet (Mcf) from $1.04 year-over-year, but missed the estimate of $2.74 [7] Segment Performance - Energy Products segment profit (excluding identified items) was $1,366 million, up from $946 million a year ago, exceeding the estimate of $702.5 million, driven by stronger refining margins [8] - Chemical Products segment profit was $293 million, down from $779 million year-over-year, missing the estimate of $512.5 million due to compressed margins [10] - Specialty Products unit recorded a profit of $780 million, up from $751 million a year ago, surpassing the estimate of $642.1 million, benefiting from stronger basestock margins and record sales volumes [11] Financial Overview - ExxonMobil generated $11.55 billion in cash flow from operations and asset divestments, with capital and exploration spending of $6.33 billion [12] - Total cash and cash equivalents were $14.35 billion, while long-term debt stood at $33.57 billion [12] Guidance - For 2025, the company expects cash capital expenditures to be in the range of $27-$29 billion, consistent with previous guidance [13]

I would tell you we were very surprised. I think as you and I talked about that morning, I was surprised. If you remember when we talked about this in the past, uh Exxon negotiated and wrote co-wrote with Shell, uh the the agreement that the the operating agreement for Guyana.We understood the intent of that document and we firmly believe that the language in the document conveyed that intent. As we went into the arbitration, we went back to the folks who negotiated. We went back and talked to Shell about i ...

Market Dynamics - Global demand for transportation fuels, products, and chemicals remains strong, putting pressure on oil pricing [1] - OPEC is unwinding some of its production, impacting supply [1] - The market could become longer in the back end of the year depending on demand and production from national oil companies [2] Financial Strategy & Risk Management - The company is prepared for a lower price environment than current levels [2][3] - Investment plans were developed with a lower price basis in mind [2] - Business and investment scenarios are tested against extreme cases, including pricing worse than COVID [4] - The company can maintain its dividend and continue its buyback program even under adverse pricing scenarios [3][4] - The company has a strong balance sheet [3]

Exxon Mobil CEO Darren Woods said the oil giant is looking for acquisition opportunities in the oil-and-gas space after losing its legal challenge to Chevron’s $53 billion deal to buy Hess https://t.co/LKodYqkLYt ...