Huaxin Securities·2025-11-10 13:28Investment Rating - The report maintains a recommendation for investment in sectors focusing on domestic demand, high dividends, and import substitution [1]. Core Viewpoints - The report highlights that the chemical industry is currently experiencing a mixed performance, with some products seeing significant price increases while others are declining. It emphasizes the importance of focusing on sectors like glyphosate, fertilizers, and high-dividend assets amid a backdrop of fluctuating oil prices and uncertain international conditions [6][23]. - The report suggests that the international oil price is expected to stabilize around $65 per barrel, influenced by rising U.S. oil inventories and geopolitical uncertainties [6][24]. Summary by Relevant Sections Chemical Industry Investment Suggestions - The report recommends focusing on sectors likely to enter a growth cycle, such as glyphosate, which is showing signs of recovery with decreasing inventory and rising prices [23]. - It also suggests selecting stocks with strong competitive positions and growth potential, particularly in the lubricant additives and coal-to-olefins sectors [23]. - The report highlights the importance of domestic demand in the chemical fertilizer sector, particularly nitrogen and phosphate fertilizers, which are expected to maintain stable demand [23]. Price Movements of Chemical Products - Significant price increases were noted for natural gas (up 30.25%), nitric acid (up 20.59%), and liquid chlorine (up 10.27%) [20][21]. - Conversely, products like ammonium chloride and butadiene experienced substantial declines, with drops of -13.33% and -12.66% respectively [20][21]. Market Trends and Analysis - The report indicates that the chemical industry is currently in a weak overall performance phase, with mixed results across different sub-sectors due to past capacity expansions and weak demand [21][23]. - It emphasizes the need to pay attention to high-quality assets in the oil sector, particularly state-owned enterprises like Sinopec, which are expected to benefit from lower raw material costs due to declining oil prices [23].