Report Industry Investment Rating No relevant content provided. Core Viewpoints The report analyzes the market conditions, important news, logical analysis, and trading strategies of plastic L and PP on a daily basis. Overall, the market shows a weak trend, with prices mostly falling. The trading strategies mainly involve holding short - positions for the main contracts of L and PP, with appropriate adjustments to stop - loss points according to market changes. [1][5][8] Summary by Related Catalogs Market Conditions - **L Plastic**: The L2601 contract generally shows a downward trend, with prices fluctuating. The LLDPE market price mostly declines, and the trading atmosphere is weak. Downstream demand is not strong, and traders often reduce prices to sell goods. For example, on November 7, 2025, the L2601 contract closed at 6802 points, down 3 points or 0.04%, and the LLDPE market price continued to fall [1]. - **PP Polypropylene**: The PP2601 contract also mostly shows a downward trend. The PP market price is weak, and the cost support is weakened. Downstream procurement is cautious, and the market trading volume is limited. For example, on November 7, 2025, the PP2601 contract closed at 6459 points, down 12 points or 0.19%, and the domestic PP market was still weak [1]. Important News - **Industry - related Policies and Events**: The 7 - department "Petrochemical and Chemical Industry Steady Growth Work Plan (2025 - 2026)" aims to achieve an average annual growth of over 5% in the industry's added value from 2025 to 2026. The US government shutdown has affected data supply, increasing the difficulty of decision - making for central banks [33][55]. - **Company - related News**: PetroChina Guangxi Petrochemical's 120 - million - ton/year ethylene plant was successfully put into operation, which will promote the development of the petrochemical industry in the southwest region. Zhonghua International focuses on the main business of chemical new materials, and its MIAK project has achieved certain results [8][15]. Logical Analysis - **Positive Factors**: In September, the domestic pipeline transportation industry's fixed - asset investment completion amount increased by 14.8% year - on - year, with continuous marginal growth for 8 months, which is beneficial to the polyolefin single - side. The EuroCoin index has strengthened for 6 consecutive months, which is also beneficial to the polyolefin single - side [49][30]. - **Negative Factors**: In October, the domestic manufacturing PMI declined to 49.0%, a year - on - year decline of 2.2%, which is negative for the rubber and plastic single - side. The domestic real estate prosperity index has declined for 6 consecutive months, which is negative for the polyolefin single - side [5][6]. Trading Strategies - **Single - side**: Most of the time, it is recommended to hold short - positions for the main 01 contracts of L and PP, and adjust the stop - loss points according to market changes. For example, on November 7, 2025, it was recommended to hold short - positions for the L main 01 contract, with the stop - loss point moved down to 6850 points [2]. - **Arbitrage (Long - Short)**: Most of the time, it is recommended to wait and see. - **Options**: Most of the time, it is recommended to wait and see.

Core Viewpoint - The logistics industry in China experienced a slight decline in the logistics prosperity index for October 2025, which stands at 50.7%, down 0.5 percentage points from the previous month, yet remains in the expansion zone [1][7]. Group 1: Logistics Demand and Business Activity - The logistics demand showed a slight pullback in October, with the business volume index at 50.7%, reflecting a decrease of 0.5 percentage points, although it remains in the expansion range [4][9]. - The industrial logistics sector saw a decline in demand for home appliances, communication products, and renovation materials, while demand for electronic components, new energy vehicles, and transportation equipment remained strong [9]. - The consumer logistics sector experienced growth, driven by active online shopping and promotional activities during the National Day and Mid-Autumn Festival, with the postal express industry’s business volume index rising to 70.5%, up 0.4 percentage points [9]. Group 2: Business Resilience and Profitability - Logistics companies demonstrated resilience, with the main business profit index rising by 0.2 percentage points despite rising costs, indicating stable operational performance [10]. - Small and micro enterprises saw an increase in their main business profit index by 0.1 and 0.4 percentage points respectively, while large and medium-sized enterprises experienced a decline of 0.2 percentage points [10]. Group 3: Investment and Market Expectations - Fixed asset investment in logistics maintained an expansion trend, with the completion index at 55.2%, indicating ongoing investment in the sector [5][11]. - The business activity expectation index remained high at 55.3%, reflecting a positive outlook among enterprises for the future [6][11]. - Overall, the logistics industry is expected to maintain a steady growth trajectory, supported by strong demand and resilient supply chains [11].

Group 1 - The State Council has announced the holiday schedule for 2026, including a 9-day Spring Festival holiday [1] - The Ministry of Commerce expressed hope for the Netherlands to adopt a responsible attitude towards China and to stop interfering in corporate affairs, seeking a constructive resolution for the ASML semiconductor issue [1] - The National Healthcare Security Administration reported that negotiations for the 2025 drug catalog have concluded, with the new basic medical insurance drug catalog and the first version of the commercial insurance innovative drug catalog set to be released in early December [1] Group 2 - The logistics industry in China maintained an expansion trend with a logistics prosperity index of 50.7% in October [1] - The 8th China International Import Expo will take place from November 5 to 10 in Shanghai, featuring participation from 155 countries and regions, with over 4,108 foreign enterprises exhibiting [1] Group 3 - The "Clear and Bright" campaign has been launched by the Cyberspace Administration to improve the online environment for the 15th National Games and the Special Olympics [1]

Core Viewpoint - In October, China's logistics industry maintained an expansionary trend despite a slight decline in the logistics prosperity index to 50.7%, reflecting stable demand in both industrial and consumer sectors [1][4]. Group 1: Logistics Industry Performance - The logistics business volume index remained at 50.7%, indicating continued expansion [2]. - The logistics service price index increased by 0.2 percentage points, while the main business profit index also rose by 0.2 percentage points, showing resilience in enterprise operations [2]. - The fixed asset investment completion index stood at 55.2%, remaining in the expansion zone [3]. Group 2: Market Expectations and Consumer Trends - The business activity expectation index was at 55.3%, although it decreased by 1.2 percentage points [4]. - The logistics growth in the consumer sector emerged as a highlight, driven by active offline and online consumption during the National Day and Mid-Autumn Festival [4]. - The postal express business volume index reached 70.5%, with a 0.4 percentage point increase, indicating robust e-commerce activity and growth in instant delivery services [4]. Group 3: Future Outlook - The logistics demand is expected to remain strong, with a large total volume and stable structure, supported by high-quality supply chain capabilities and strong enterprise resilience [4].

Group 1 - The core viewpoint of the news is that the logistics industry in China continues to show expansion in October, with the logistics prosperity index at 50.7%, despite a slight month-on-month decline of 0.5 percentage points [1] - The logistics business volume index, new orders index, and capital turnover rate index remain in the prosperity range, indicating sustained demand expansion [1] - The consumption logistics sector has become a highlight in October, driven by the National Day and Mid-Autumn Festival holidays, with significant growth in retail and e-commerce activities [1] Group 2 - Logistics infrastructure investment remains stable, with the fixed asset investment completion index at 55.2%, indicating ongoing expansion [2] - The business activity expectation index for enterprises is at 55.3%, remaining in a high prosperity range for eight consecutive months, reflecting optimistic expectations for the year [2] - Fixed investment completion indices for railway, air, and postal express transportation are all above 55%, indicating strong investment activity in these sectors [2]

Group 1: Economic Indicators - The core Consumer Price Index (CPI) has increased for the fifth consecutive month, with a year-on-year rise of 1% in September, marking the first time in 19 months that the increase has returned to 1% [2] - The narrow gap between narrow money (M1) and broad money (M2) has shrunk to 1.2 percentage points, the lowest this year, indicating improved business activity and personal investment demand [3] - The logistics industry has maintained a positive outlook, with the logistics industry prosperity index at 51.2% in September, reflecting a continuous demand for logistics services [4] Group 2: Consumer Demand and Spending - The rise in core CPI suggests accelerated consumer demand, particularly in quality and upgraded consumption, with notable price increases in sectors such as arts and crafts (14.7%), sports equipment (4%), and nutritional foods (1.8%) [2] - E-commerce logistics have shown strong demand, with the e-commerce logistics index reaching a new high of 112.7 points in September, driven by seasonal consumption and holiday factors [5][6] - The overall consumer market remains stable, with policies aimed at expanding domestic demand and promoting consumption showing positive effects [2] Group 3: Financial Sector and Lending - Corporate loans have shown a positive growth trend, particularly in key sectors like equipment manufacturing and high-tech manufacturing, with a year-on-year increase of 8.2% in medium to long-term loans for the manufacturing sector [3] - Personal credit demand has rebounded, supported by lower interest costs and adjustments in housing purchase policies in major cities, leading to a 7% year-on-year increase in housing transaction volume in September [3] - Financial mechanisms are expected to play a crucial role in stimulating effective demand in the real economy through interest rate adjustments and coordinated market rates [3]

Core Insights - The logistics industry in China showed a recovery in September, with the logistics prosperity index at 51.2%, a month-on-month increase of 0.3 percentage points, maintaining a prosperous range for seven consecutive months [1] - The overall logistics demand remains stable, with significant growth in both residential consumption logistics and industrial logistics, driven by seasonal factors such as the back-to-school period and tourism [1][2] Group 1: Logistics Prosperity Index - The logistics prosperity index has cumulatively increased by 0.4 percentage points over the past three months, indicating a stabilization in business vitality [1] - The total business volume index and new order index have also seen cumulative increases of 0.4 and 0.9 percentage points, respectively [1] Group 2: Regional Performance - The total business volume index in eastern and western regions of China increased by 0.4 and 0.2 percentage points, respectively [1] Group 3: Demand Drivers - Key sectors such as energy transportation, electronic components, pharmaceuticals, telecommunications equipment, and durable consumer goods are experiencing positive logistics demand, contributing to growth in rail, road, water, and air logistics [1] - The postal and express delivery industry has a business volume index of 70.1%, significantly higher than the overall industry level [1] Group 4: Price Trends - The logistics service price index increased by 0.9 percentage points in the third quarter, with road and water transportation service price indices also showing recovery [2] - The average business activity expectation index for the third quarter is at 56%, indicating an overall expansion trend [2]

Core Insights - The logistics industry in China shows a significant recovery with a logistics prosperity index of 51.2% in September, marking a 0.3 percentage point increase and reaching a six-month high [1] Group 1: Demand Dynamics - The logistics demand is experiencing a dual boost from both consumer and industrial sectors, indicating a steady release of economic vitality [1] - In the consumer logistics sector, there is a notable rebound in demand driven by the end of summer heat, the back-to-school season, and tourism, with increased orders in categories like fresh food, home appliances, and outdoor activities [1] - The industrial logistics sector also shows positive trends, with strong demand in energy transport, electronic components, pharmaceuticals, and durable consumer goods, reflecting stable operations in supply chains [1] Group 2: Business Performance - Multiple operational indicators in the logistics industry improved in September, including logistics service price index, employment index, and main business profit index, indicating resilience among market players [2] - The logistics service price index rose by 0.9 percentage points in Q3, with both road and water transport service price indices recovering from previous lows, showcasing a positive business environment [2] - Enhanced business vitality allows logistics companies to invest more in technological innovation and service upgrades, which in turn boosts efficiency and promotes collaborative development across the supply chain [2] Group 3: Market Expectations - The new orders index for the logistics industry expanded to 53.3% in September, with significant increases in new orders across various transport sectors, reflecting sustained market demand [3] - The business activity expectation index remains above 55%, indicating strong confidence in future industry growth [3] - Positive market expectations encourage companies to invest, hire, and expand operations, thereby enhancing growth potential and contributing to high-quality economic development [3]

Core Viewpoint - The logistics industry in China shows signs of stable growth, with the logistics prosperity index for September at 51.2%, reflecting a 0.3 percentage point increase from the previous month [1] Group 1: Logistics Demand - Total logistics demand continues to expand, with the new orders index at 53.3%, up 1 percentage point month-on-month, maintaining a prosperous range for eight consecutive months [1] - Consumer logistics demand remains stable, with significant growth in sectors such as cold chain fresh food, home appliances, outdoor tourism, and beauty clothing, as evidenced by the postal express business volume index at 70.1%, significantly higher than the industry average [1] Group 2: Sector Performance - The logistics demand in energy transportation, electronic components, and pharmaceutical chemicals is improving, contributing to growth in rail, road, water, and air logistics volumes [1] - In September, the business volume index for railway transportation and road transportation increased by 0.1 and 0.2 percentage points respectively, while the air transportation business volume index and new orders index rose by 0.3 and 1.2 percentage points respectively [1]

Core Insights - The logistics industry in China has shown signs of recovery, with the logistics prosperity index reaching 51.2% in September, marking a 0.3 percentage point increase from the previous month and the highest level since April [1] Industry Performance - The new orders index has accelerated, with significant month-on-month increases in the railway, road, air transport, and multimodal transport sectors, all exceeding 0.5 percentage points [1] - Consumer logistics, particularly in cold chain fresh food, outdoor tourism, and clothing e-commerce categories, has experienced rapid growth [1] - The postal express industry reported a business volume index of 70.1% in September, significantly higher than the overall industry level [1] Sector Demand - In terms of industrial logistics, there has been a positive trend in logistics demand for energy transportation, communication equipment, and durable consumer goods such as home appliances, contributing to stable growth in logistics business volume [1] - Over the third quarter, the logistics prosperity index cumulatively increased by 0.4 percentage points, indicating enhanced logistics activity and improved operational vitality for enterprises [1]