Dongguan Securities·2025-06-13 09:22Investment Rating - The report maintains an "Overweight" rating for the basic chemical industry [1] Core Viewpoints - The tension in the Middle East has driven up oil prices, prompting attention to segments with favorable supply-demand dynamics [1][30] - The basic chemical industry index rose by 2.57% in the last two weeks, outperforming the CSI 300 index by 1.7 percentage points, ranking 10th among 30 sectors [3][10] - The report highlights that the PPI in China continued to decline year-on-year in May, influenced by international factors, while domestic energy and raw material prices also saw a temporary decrease [30] - Despite low profitability in the industry, the willingness of companies to expand production is expected to decrease, leading to a more rational supply in the industry [30] Summary by Sections Market Review - As of June 12, 2025, the basic chemical industry has increased by 6.06% year-to-date, outperforming the CSI 300 index by 7.14 percentage points [10] - The top five products with the highest price increases recently include: - Crude Benzene (+8.38%) - Pure Benzene (+7.34%) - Toluene (+7.02%) - Styrene (+6.87%) - Adipic Acid (+6.63%) [19][20] Chemical Product Price Situation - The report notes significant price fluctuations in key chemical products, with the largest declines seen in: - Methyl Chloride (-13.16%) - TDI (-7.00%) - Fatty Alcohols (-6.98%) - Trichloromethane (-6.42%) - Fumed Silica (-5.13%) [19][20] Industry Insights - The report emphasizes the ongoing reduction of quotas for second-generation refrigerants and the continued freeze on third-generation refrigerants, maintaining supply constraints [30] - The demand for refrigerants is expected to grow due to strong production data for air conditioners and new energy vehicles, supported by government initiatives [30] - The report suggests monitoring companies such as Sanmei Co., Ltd. (603379) and Juhua Co., Ltd. (600160) for potential investment opportunities in the refrigerant sector [30] Company Announcements - The report includes various company announcements, such as BASF's new HMD facility in France and the successful launch of a new nylon project by China Pingmei Shenma Group [28][32]