Ge Long Hui·2025-11-18 08:09Core Viewpoint - The report from Huatai Securities indicates that due to the peak in China's crude oil processing capacity and constraints on overseas supply, global sulfur supply growth is facing bottlenecks, while demand is steadily increasing in sectors such as global phosphate fertilizer consumption and the production of new materials like lithium batteries, nylon, and titanium dioxide [1] Industry Summary - In 2024, China's apparent sulfur consumption is expected to grow by 8.6% year-on-year, with imports accounting for 47% of the total, reflecting a year-on-year increase of 12.7% [1] - The increasing dependence on foreign sulfur and the global supply-demand imbalance are projected to lead to a 152% rise in sulfur prices by November 14, 2025, reaching 3,930 yuan per ton [1] Company Summary - China Petroleum & Chemical Corporation (Sinopec) has a sulfur production capacity of 8.88 million tons per year, making it the largest sulfur supplier in China [1] - The recovery in sulfur market conditions is expected to boost the company's refining segment, alongside a turning point in the petrochemical sector's capacity cycle [1] - As a result, Huatai Securities has upgraded the company's A/H rating to "Buy," with a target price of 7.60 yuan and 6.26 Hong Kong dollars [1]