1. Report Industry Investment Rating There is no information provided regarding the report industry investment rating. 2. Core View of the Report The report analyzes the market conditions of LLDPE and PP, indicating that both are expected to show a volatile trend today. The market is influenced by factors such as cost support, macro - policies promoting the steady growth of the petrochemical industry, and weak demand. The main risk factors include significant fluctuations in crude oil prices and international policy games [4][6][7][8]. 3. Summary by Related Content LLDPE Overview - **Fundamentals**: In June, the PMI was 49.7%, up 0.2 percentage points from the previous month, remaining in the contraction range for three consecutive months. The Caixin PMI in June was 50.4, 2.1 percentage points higher than in May, returning above the critical point. On July 14, the US threatened to impose secondary sanctions on Russian crude oil within 50 days. On July 18, the Ministry of Industry and Information Technology announced a plan to promote the steady growth of key industries including the petrochemical industry. The downstream demand is generally weak, with the agricultural film in the off - season and the packaging film slightly improved. The current spot price of LLDPE delivery products is 7260 (+20), and the overall fundamentals are neutral [4]. - **Basis**: The basis of the LLDPE 2509 contract is - 28, with a premium/discount ratio of - 0.4%, which is neutral [4]. - **Inventory**: The comprehensive PE inventory is 56.3 million tons (-2.4), which is bearish [4]. - **Disk**: The 20 - day moving average of the LLDPE main contract is flat, and the closing price is above the 20 - day line, which is bullish [4]. - **Main Position**: The net position of the LLDPE main contract is short, and the short position is increasing, which is bearish [4]. - **Expectation**: The LLDPE main contract rebounds on the disk. Driven by the macro - steady growth plan, with the off - season of agricultural film demand and weak downstream demand, and the industrial inventory being neutral, it is expected that PE will show a volatile trend today [4]. - **Likely Factors**: Cost support and macro - policies promoting the steady growth of the petrochemical industry [6]. - **Negative Factors**: Weak demand [6]. PP Overview - **Fundamentals**: Similar to LLDPE, in June, the PMI was 49.7%, up 0.2 percentage points from the previous month, remaining in the contraction range for three consecutive months. The Caixin PMI in June was 50.4, 2.1 percentage points higher than in May, returning above the critical point. The downstream demand is in the off - season, with the demand for pipes and plastic weaving being weak. The current spot price of PP delivery products is 7180 (+30), and the overall fundamentals are neutral [7]. - **Basis**: The basis of the PP 2509 contract is 84, with a premium/discount ratio of 1.2%, which is bullish [7]. - **Inventory**: The comprehensive PP inventory is 58.1 million tons (+1.5), which is bearish [7]. - **Disk**: The 20 - day moving average of the PP main contract is flat, and the closing price is above the 20 - day line, which is bullish [7]. - **Main Position**: The net position of the PP main contract is short, and the short position is increasing, which is bearish [7]. - **Expectation**: The PP main contract rebounds on the disk. Driven by the macro - steady growth plan, with weak downstream demand for pipes and plastic weaving, and the industrial inventory being neutral, it is expected that PP will show a volatile trend today [7]. - **Likely Factors**: Cost support and macro - policies promoting the steady growth of the petrochemical industry [8]. - **Negative Factors**: Weak demand [8]. Market Data - **LLDPE**: The spot price of the delivery product is 7260 (+20), the price of the 09 contract is 7288 (-80), the basis is - 28, the warehouse receipt is 5822 (unchanged), the comprehensive PE factory inventory is 56.3 million tons (-2.4), and the PE social inventory is 55.8 million tons (+2.2) [9]. - **PP**: The spot price of the delivery product is 7180 (+30), the price of the 09 contract is 7096 (-72), the basis is 84, the warehouse receipt is 12642 (+400), the comprehensive PP factory inventory is 58.1 million tons (+1.5), and the PP social inventory is 27.4 million tons (+1.6) [9]. Supply - Demand Balance Sheets - **Polyethylene**: From 2018 - 2024, the production capacity, output, and apparent consumption generally showed an upward trend, while the import dependence gradually decreased. In 2025E, the production capacity is expected to reach 4319.5 [14]. - **Polypropylene**: From 2018 - 2024, the production capacity, output, and apparent consumption also showed an upward trend, and the import dependence decreased. In 2025E, the production capacity is expected to reach 4906 [16].

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - The overall fundamentals of LLDPE and PP are bearish, with cost and demand in a state of competition, and tariff policies also having an impact. It is expected that the PE and PP markets will show a volatile trend today [4][7]. 3. Summary by Related Catalogs LLDPE Overview - **Fundamentals**: In June, the PMI was 49.7%, up 0.2 percentage points from the previous month, remaining in the contraction range for three consecutive months. The Caixin PMI in June was 50.4, up 2.1 percentage points from May, back above the critical point. OPEC issued a production increase statement on July 5, increasing production for the fourth consecutive month. The agricultural film is in the off - season, downstream demand is weak, and there is still pressure from new capacity. The current spot price of LLDPE delivery products is 7190 (-20), with overall bearish fundamentals [4]. - **Basis**: The basis of the LLDPE 2509 contract is -24, with a premium/discount ratio of -0.3%, considered neutral [4]. - **Inventory**: The comprehensive PE inventory is 58.7 million tons (+3.3), which is bearish [4]. - **Market**: The 20 - day moving average of the LLDPE main contract is downward, and the closing price is below the 20 - day line, indicating a bearish trend [4]. - **Main Position**: The net position of the LLDPE main contract is short, with a reduction in short positions, showing a bearish tendency [4]. - **Expectation**: The LLDPE main contract is expected to fluctuate. With OPEC's consecutive production increases, the off - season of agricultural film demand, weak downstream demand, and ongoing production pressure, and a neutral industrial inventory, it is expected that PE will fluctuate today [4]. - **Factors**: Bullish factor is cost support; bearish factors are new capacity launch and weak demand. The main logic is the game between cost and demand, along with tariff policies [6]. PP Overview - **Fundamentals**: Similar to LLDPE, in June, the PMI was 49.7%, up 0.2 percentage points from the previous month, remaining in the contraction range for three consecutive months. The Caixin PMI in June was 50.4, up 2.1 percentage points from May, back above the critical point. OPEC increased production for the fourth consecutive month. It is the off - season for downstream demand, and the demand for pipes and plastic weaving is weak. The current spot price of PP delivery products is 7180 (-0), with overall bearish fundamentals [7]. - **Basis**: The basis of the PP 2509 contract is 167, with a premium/discount ratio of 2.4%, considered bullish [7]. - **Inventory**: The comprehensive PP inventory is 56.6 million tons (-1.5), considered neutral [7]. - **Market**: The 20 - day moving average of the PP main contract is downward, and the closing price is below the 20 - day line, indicating a bearish trend [7]. - **Main Position**: The net position of the PP main contract is short, with a reduction in short positions, showing a bearish tendency [7]. - **Expectation**: The PP main contract is expected to fluctuate. With OPEC's consecutive production increases, weak downstream demand for pipes and plastic weaving, and a neutral industrial inventory, it is expected that PP will fluctuate today [7]. - **Factors**: Bullish factor is cost support; bearish factor is weak demand. The main logic is the game between cost and demand, along with tariff policies [9]. Supply - Demand Balance Sheets - **Polyethylene**: From 2018 to 2024, the production capacity, output, and apparent consumption of polyethylene generally showed an upward trend, with fluctuations in import dependence and consumption growth rates. The expected production capacity in 2025E is 4319.5 [15]. - **Polypropylene**: From 2018 to 2024, the production capacity, output, and apparent consumption of polypropylene also generally increased, with changes in import dependence and consumption growth rates. The expected production capacity in 2025E is 4906 [17].

1. Report Industry Investment Rating - Unilateral: Neutral; Cross - period: None [3] 2. Core View of the Report - The market off - season continues, and polyolefins fluctuate downward. Downstream demand remains in the off - season, with low terminal operating rates, mainly for rigid - demand procurement, and there is little hope of short - term improvement. The upstream petrochemical plants are in the maintenance season, with a slight increase in maintenance enterprises, a decline in capacity utilization, and continuous release of new capacity, so the overall supply maintains an incremental trend. Enterprises' inventories accumulate, and the destocking rate is slow. International oil prices rebound slightly, propane prices remain weak, and the overall cost support remains weak, while the profit of PDH - made PP remains slightly profitable [1][2] 3. Summary According to the Catalog 3.1 Polyolefin Basis Structure - L主力合约收盘价为7284元/吨（-7），PP主力合约收盘价为7067元/吨（-2），LL华北现货为7200元/吨（-20），LL华东现货为7270元/吨（+0），PP华东现货为7100元/吨（-20），LL华北基差为 - 84元/吨（-13），LL华东基差为 - 14元/吨（+7），PP华东基差为33元/吨（-18） [1] 3.2 Production Profit and Operating Rate - PE开工率为77.8%（-1.7%），PP开工率为76.6%（-0.8%）；PE油制生产利润为83.4元/吨（-125.8），PP油制生产利润为 - 306.6元/吨（-125.8），PDH制PP生产利润为231.2元/吨（+24.6） [1] 3.3 Polyolefin Non - Standard Price Difference - No specific data provided in the given text 3.4 Polyolefin Import and Export Profits - LL进口利润为 - 133.3元/吨（+8.4），PP进口利润为 - 628.4元/吨（-1.2），PP出口利润为28.8美元/吨（+0.2） [1] 3.5 Polyolefin Downstream Operating Rates and Downstream Profits - PE下游农膜开工率为12.6%（+0.5%），PE下游包装膜开工率为48.1%（-0.4%），PP下游塑编开工率为42.0%（-0.2%），PP下游BOPP膜开工率为60.6%（+0.3%） [1] 3.6 Polyolefin Inventory - No specific data provided in the given text

Report Information - Report Title: Polyolefin Morning Report [2] - Report Date: July 4, 2025 - Research Department: Investment Consulting Department of Dayue Futures - Analyst: Jin Zebin Industry Investment Rating - Not provided in the report Core Viewpoints - The LLDPE market is expected to fluctuate today due to factors such as the cease - fire in the Middle East leading to a decline in crude oil prices, the off - season for agricultural film demand, weak downstream demand, and ongoing production capacity pressure, despite cost support [4]. - The PP market is also expected to show a fluctuating trend, with similar influencing factors including weak downstream demand and the impact of the cease - fire on crude oil prices [7]. Summary by Content LLDPE Overview - **Fundamentals**: In June, the PMI was 49.7%, up 0.2 percentage points from the previous month, remaining in the contraction range for three consecutive months. The Caixin PMI was 50.4, up 2.1 percentage points from May. After the cease - fire in the Middle East, crude oil prices fell. The agricultural film is in the off - season, downstream demand for packaging film is weak, and there is still pressure from new production capacity. The current spot price of LLDPE delivery products is 7280 (+50), with overall bearish fundamentals [4]. - **Basis**: The basis of the LLDPE 2509 contract is - 4, and the premium/discount ratio is - 0.1%, considered neutral [4]. - **Inventory**: The comprehensive PE inventory is 500,000 tons (- 5000), which is neutral [4]. - **Market**: The 20 - day moving average of the LLDPE main contract is upward, and the closing price is above the 20 - day line, showing a bullish signal [4]. - **Main Position**: The net position of the LLDPE main contract is short, with a reduction in short positions, indicating a bearish sentiment [4]. - **Expectation**: The LLDPE main contract is expected to fluctuate today [4]. LLDPE Factors - **Bullish Factors**: Cost support [6] - **Bearish Factors**: New production capacity release and weak demand [6] - **Main Logic**: The game between cost and demand, along with tariff policies [6] PP Overview - **Fundamentals**: Similar to LLDPE in terms of macro - data. The downstream demand for PP is in the off - season, and the demand for pipes and plastic weaving is weak. The current spot price of PP delivery products is 7250 (- 0), with overall bearish fundamentals [7]. - **Basis**: The basis of the PP 2509 contract is 176, and the premium/discount ratio is 2.5%, showing a bullish signal [7]. - **Inventory**: The comprehensive PP inventory is 570,000 tons (- 15,000), considered neutral [7]. - **Market**: The 20 - day moving average of the PP main contract is upward, and the closing price is above the 20 - day line, showing a bullish signal [7]. - **Main Position**: The net position of the PP main contract is short, with a reduction in short positions, indicating a bearish sentiment [7]. - **Expectation**: The PP main contract is expected to fluctuate today [7] PP Factors - **Bullish Factors**: Cost support [9] - **Bearish Factors**: Weak demand [9] - **Main Logic**: The game between cost and demand, along with tariff policies [9] Market Data - **LLDPE**: The spot price of delivery products is 7280 (+50), the 09 - contract price is 7284 (- 4), the basis is - 4, and the comprehensive PE inventory is 500,000 tons (- 5000) [4][10] - **PP**: The spot price of delivery products is 7250 (- 0), the 09 - contract price is 7074 (+2), the basis is 176, and the comprehensive PP inventory is 570,000 tons (- 15,000) [7][10] Supply - Demand Balance Sheets - **Polyethylene**: From 2018 to 2024, the production capacity, output, and apparent consumption generally showed an upward trend, with fluctuations in import dependence and consumption growth rates. The expected production capacity in 2025E is 4319.5 [15] - **Polypropylene**: From 2018 to 2024, the production capacity, output, and apparent consumption also generally increased, with changes in import dependence and consumption growth rates. The expected production capacity in 2025E is 4906 [17]

Report Industry Investment Rating - The unilateral strategy is rated as neutral, and there is no recommendation for the inter - period strategy [3] Core View - Geopolitical tensions have significantly eased, weakening the cost - side support for polyolefins, and trading has returned to fundamentals. During the off - season, consumption is weak. The overall operating load of PE downstream agricultural film is at a low level. The operating rate of packaging film is lower than the same period, the operating rate of plastic weaving has decreased, and the terminal's willingness to stock up is low, mainly for rigid - demand procurement. The inventory of production enterprises has slightly increased, while the inventory of middle - stream traders has decreased. The new 500,000 - ton/year PP production capacity of Zhenhai Refining & Chemical has been successfully put into operation. Currently, there are many short - stop maintenance devices, which are expected to resume operation one after another in the future. The short - term supply pressure is not significant, but the supply is expected to increase in the future [2] Summary According to the Directory 1. Polyolefin Basis Structure - The report presents the trends of the plastic futures main contract and the PP futures main contract, as well as the basis between LL East China and the main contract, and the basis between PP East China and the main contract [8][11] 2. Production Profit and Operating Rate - PE operating rate is 76.4% (- 2.3%), and PP operating rate is 79.3% (- 0.3%). PE oil - based production profit is 363.4 yuan/ton (- 95.5), PP oil - based production profit is - 26.6 yuan/ton (- 95.5), and PDH - based PP production profit is 77.7 yuan/ton (+ 79.2) [1] 3. Polyolefin Non - Standard Price Difference - The report analyzes the price differences between HD injection molding - LL East China, HD blow molding - LL East China, HD film - LL East China, LD East China - LL, PP low - melt copolymer - drawn wire East China, and PP homopolymer injection molding - drawn wire East China [28][36][37] 4. Polyolefin Import and Export Profits - LL import profit is - 61.4 yuan/ton (- 55.2), PP import profit is - 297.8 yuan/ton (+ 41.0), and PP export profit is 19.9 US dollars/ton (+ 20.6) [1] 5. Polyolefin Downstream Operating Rate and Downstream Profits - PE downstream agricultural film operating rate is 12.4% (+ 0.2%), PE downstream packaging film operating rate is 48.0% (- 1.2%), PP downstream plastic weaving operating rate is 43.2% (- 0.4%), and PP downstream BOPP film operating rate is 60.4% (+ 0.0) [1] 6. Polyolefin Inventory - The inventory of production enterprises has slightly increased, while the inventory of middle - stream traders has decreased [2]

Report Industry Investment Rating - The report gives a cautious and bearish rating for plastics in the unilateral strategy, and no rating for the inter - period strategy [3] Core View - In the traditional off - season of demand, the overall performance of the polyolefin demand side is weak, with weak downstream orders, reduced factory replenishment willingness, and a supply - strong and demand - weak situation due to the expected start - up of multiple previously overhauled devices and the limited cost support from the significant decline in international crude oil prices [2] Summary by Relevant Catalogs I. Polyolefin Basis Structure - The L main contract closed at 7102 yuan/ton (-4), the PP main contract closed at 6960 yuan/ton (+19), the LL North China spot was 7130 yuan/ton (-10), the LL East China spot was 7180 yuan/ton (+60), the PP East China spot was 7100 yuan/ton (+20), the LL North China basis was 28 yuan/ton (-6), the LL East China basis was 78 yuan/ton (+64), and the PP East China basis was 140 yuan/ton (+1) [1] II. Production Profit and Operating Rate - The PE operating rate was 77.4% (+0.6%), the PP operating rate was 77.0% (+1.6%), the PE oil - based production profit was 187.4 yuan/ton (+28.1), the PP oil - based production profit was - 92.6 yuan/ton (+28.1), and the PDH - made PP production profit was - 117.3 yuan/ton (+4.8) [1] III. Polyolefin Non - Standard Price Difference - No specific data provided in the given text IV. Polyolefin Import and Export Profit - The LL import profit was - 302.5 yuan/ton (+13.2), the PP import profit was - 472.3 yuan/ton (+3.1), and the PP export profit was 16.1 US dollars/ton (-0.4) [1] V. Polyolefin Downstream Operating Rate and Downstream Profit - The PE downstream agricultural film operating rate was 12.9% (-0.1%), the PE downstream packaging film operating rate was 48.9% (+0.3%), the PP downstream plastic weaving operating rate was 44.7% (-0.5%), and the PP downstream BOPP film operating rate was 60.4% (+0.7%) [1] VI. Polyolefin Inventory - The petrochemical inventory increased, and the upstream factory inventory and trader inventory were slowly destocked [2]

Report Industry Investment Rating No relevant content provided. Core Views Plastic - Market expectations are weak, and it is expected to fluctuate narrowly. The short - term cost of international oil price increases may support the price. However, the downstream demand is weak, and the fundamentals maintain a pattern of high production capacity, low profit, and weak demand. It is expected that the plastic 2509 contract will fluctuate narrowly in the short term, with a reference range of 6950 - 7100 [4]. PP - Inventory accumulates, and the market is expected to fluctuate weakly. The short - term cost of international oil price increases may support the price, but the supply - side benefits are offset, and the demand is weak. The inventory accumulation exerts great pressure on the market. It is expected that PP2509 will maintain a weakly fluctuating trend in the short term, with a reference range of 6850 - 7200 [6]. Summary by Directory Plastic Market Changes - On June 6, the closing price of the plastic main contract was 7066 yuan/ton, a decrease of 106 yuan/ton from last week. LDPE average price was 9216.67 yuan/ton, a month - on - month increase of 0.55%. HDPE average price was 8062.50 yuan/ton, a month - on - month decrease of 0.40%. The average price of LLDPE (7042) in South China was 7414.12 yuan/ton, a month - on - month decrease of 0.43%. The LLDPE South China basis was 348.12 yuan/ton, a month - on - month decrease of 19.10%, and the 6 - 9 month spread was - 37 yuan/ton (- 27) [4][8]. Fundamental Changes - **Cost and Profit**: WTI crude oil closed at 64.77 US dollars/barrel, an increase of 3.98 US dollars/barrel from last week. Brent crude oil closed at 66.65 US dollars/barrel, an increase of 4.04 US dollars/barrel from last week. The price of anthracite at the Yangtze River port was 980 yuan/ton (unchanged). The profit of oil - based PE was - 205 yuan/ton, a decrease of 57 yuan/ton from last week, and the profit of coal - based PE was 1212 yuan/ton, an increase of 10 yuan/ton from last week [4]. - **Supply**: The production start - up rate of Chinese polyethylene was 77.41%, an increase of 0.64 percentage points from last week. The weekly polyethylene output was 59.73 tons, a month - on - month increase of 1.43%. The maintenance loss this week was 12.04 tons, a decrease of 1.47 tons from last week [4]. - **Demand**: The overall domestic agricultural film start - up rate was 12.89%, a decrease of 0.09% from last week. The PE packaging film start - up rate was 48.89%, an increase of 0.30% from last week, and the PE pipe start - up rate was 30.83%, a decrease of 1.00% from last week [4]. - **Inventory**: The social inventory of plastic enterprises was 58.27 tons, a decrease of 1.71 tons from last week [4]. Key Data Tracking - **Month - spread**: The 1 - 6 month spread on June 6, 2025, was 8 yuan/ton (a change of 35 yuan/ton); the 6 - 9 month spread was - 37 yuan/ton (- 27); the 9 - 1 month spread was 29 yuan/ton (- 8) [15]. - **Spot Price**: The spot prices of different varieties and regions of polyethylene showed different changes, with some increasing and some decreasing [16][17]. - **Cost**: Crude oil prices rebounded, and it is expected to maintain a low - level fluctuating trend. The anthracite market was weak [19]. - **Profit**: It is expected that the profit of oil - based PE and coal - based PE will run weakly [22]. - **Supply**: The production start - up rate increased, and the output increased slightly. There were many maintenance losses this week [25]. - **2025 Production Plan**: Many companies have new production capacity plans in 2025, with a total planned production capacity of 543 [27]. - **Maintenance Statistics**: Multiple enterprises had equipment maintenance, with different parking and start - up times [28]. - **Demand**: The agricultural film peak season has passed, and the start - up rates of packaging film and pipes are average. The market trading atmosphere is light [29]. - **Downstream Production Ratio**: The production ratio of linear film is the highest, and there are differences between the current ratios of some products and the annual average levels [33]. - **Inventory**: The social inventory of plastic enterprises decreased [35]. - **Warehouse Receipts**: The number of polyethylene warehouse receipts was 5254 hands, a decrease of 5 hands from last week [42]. PP Market Changes - On June 6, the closing price of polypropylene 2509 was 6925 yuan/ton, an increase of 50 yuan/ton from last week. The polypropylene market first fell and then rose this week, with the price center of gravity moving slightly downward and the amplitude narrowing [46]. Fundamental Changes - **Cost and Profit**: WTI crude oil closed at 64.77 US dollars/barrel, an increase of 3.98 US dollars/barrel from last week. Brent crude oil closed at 66.65 US dollars/barrel, an increase of 4.04 US dollars/barrel from last week. The price of anthracite at the Yangtze River port was 980 yuan/ton (unchanged). The profit of oil - based PP was 31.70 yuan/ton, a decrease of 53.54 yuan/ton from last week, and the profit of coal - based PP was 914.60 yuan/ton, a decrease of 75.95 yuan/ton from last week [6]. - **Supply**: The start - up rate of Chinese PP petrochemical enterprises was 75.44%, a decrease of 1.39 percentage points from last week. The weekly output of PP pellets reached 75.83 tons, a month - on - month increase of 2.79%, and the weekly output of PP powder reached 7.36 tons, a month - on - month increase of 26.57% [6]. - **Demand**: The average downstream start - up rate was 50.01% (- 0.28%). The start - up rate of plastic weaving was 44.70% (- 0.50%), the start - up rate of BOPP was 60.41% (+ 0.65%), the start - up rate of injection molding was 56.09% (- 0.08%), and the start - up rate of pipes was 36.13% (- 0.14%) [6]. - **Inventory**: The domestic polypropylene inventory was 60.51 tons (+ 9.36%), with an overall increase in inventory pressure. The inventory of two major oil companies increased by 11.03% month - on - month, the inventory of traders increased by 8.45% month - on - month, and the port inventory increased by 2.31% month - on - month [6]. Key Data Tracking - **Downstream Spot Price**: The prices of different PP products and related products showed different changes [47]. - **Basis**: On June 6, the spot price of polypropylene reported by Shengyi.com was 7380 yuan/ton (- 13.33), with a slight month - on - month increase. The PP basis was 455 yuan/ton (- 63), and the basis strengthened. The 5 - 9 month spread was - 57 yuan/ton (+ 1), and the month spread widened [49]. - **Month - spread**: The 1 - 5 month spread on June 6, 2025, was 9 yuan/ton (a change of 24 yuan/ton); the 5 - 9 month spread was - 57 yuan/ton (1); the 9 - 1 month spread was 48 yuan/ton (- 25) [56]. - **Cost**: Crude oil prices rebounded, and it is expected to maintain a low - level fluctuating trend. The anthracite market was weak [58]. - **Profit**: The profit of oil - based PP and coal - based PP decreased [60]. - **Supply**: The start - up rate decreased, but the output of pellets and powder increased [64]. - **2025 Second - Quarter Production Plan**: Multiple enterprises have new production capacity plans in the second quarter of 2025, with a total planned production capacity of 427.5 [68]. - **Maintenance Statistics**: Many enterprises' production lines have long - term or short - term maintenance, with many of the start - up times undetermined [70]. - **Demand**: The overall downstream start - up rate decreased slightly, and the start - up rates of different industries showed different changes [72]. - **Demand (Product Proportion)**: The proportions of different PP products showed different changes [75]. - **Import and Export Profit**: The import profit of polypropylene was - 569.19 US dollars/ton, a decrease of 26.34 US dollars/ton from last week. The export profit was 6.78 US dollars/ton, an increase of 3.52 US dollars/ton from last week. The import window is closed, and the export window is open [76]. - **Inventory**: The domestic polypropylene inventory increased, and the inventories of different sectors all increased. The finished product inventory of large plastic - weaving enterprises decreased, and the BOPP raw material inventory decreased [78][81]. - **Warehouse Receipts**: On June 6, the number of polypropylene warehouse receipts was 4885 hands, a decrease of 149 hands from last week [85].

Report Industry Investment Rating - Not provided in the given content Core Viewpoints - The supply pressure of polyolefins has been alleviated due to increased plant maintenance, new capacity from Huizhou ExxonMobil, and the "China-US tariff" benefit. However, the inventory of polyolefin producers has accumulated significantly, leading to high de-stocking pressure. The market may trade based on the "rush to export" logic, and downstream demand may improve in the future. The seasonal decline in agricultural film production is observed, while the operating rates of other industries remain stable, mainly driven by rigid demand. With the significant drop in crude oil prices, the cost support for polyolefins is weak. The production profit of PDH-based PP is slightly in the red, and there are many PDH plants under maintenance. Future attention should be paid to the restart plans of PDH plants [2] - For trading strategies, a cautious and bearish stance is recommended for plastics on a single-side basis, and no cross-period strategy is proposed [3] Summary by Directory 1. Polyolefin Basis Structure - The closing price of the L main contract is 7,298 yuan/ton (-41), and the closing price of the PP main contract is 7,161 yuan/ton (-32). The spot price of LL in North China is 7,430 yuan/ton (+30), and in East China is 7,450 yuan/ton (+50). The spot price of PP in East China is 7,250 yuan/ton (+0). The basis of LL in North China is 132 yuan/ton (+71), in East China is 152 yuan/ton (+91), and the basis of PP in East China is 89 yuan/ton (+32) [1] 2. Production Profit and Operating Rate - The operating rate of PE is 79.5% (-4.5%), and the operating rate of PP is 76.6% (-3.2%). The oil-based production profit of PE is 515.8 yuan/ton (+141.7), the oil-based production profit of PP is 125.8 yuan/ton (+141.7), and the production profit of PDH-based PP is -273.7 yuan/ton (-7.1) [1] 3. Non-standard Price Spread of Polyolefins - Not provided in the given content 4. Import and Export Profits of Polyolefins - The import profit of LL is -81.8 yuan/ton (+13.3), the import profit of PP is -361.9 yuan/ton (-123.4), and the export profit of PP is 12.2 US dollars/ton (-6.1) [1] 5. Downstream Operating Rate and Downstream Profit of Polyolefins - The operating rate of the PE downstream agricultural film is 16.7% (-2.8%), the operating rate of the PE downstream packaging film is 48.7% (+1.1%), the operating rate of the PP downstream plastic weaving is 45.3% (+0.5%), and the operating rate of the PP downstream BOPP film is 59.9% (+2.3%) [1] 6. Polyolefin Inventory - The inventory of polyolefin producers has accumulated significantly, and the de-stocking pressure is high, but specific inventory data is not provided [2]

Report Industry Investment Rating - No industry investment rating is provided in the report. Core Viewpoints - The significant reduction in Sino-US tariffs exceeded market expectations, leading to an improved market trading atmosphere and a slight rebound in polyolefins. Currently, the cost support for polyolefins is weak, and the production profit of PDH-made PP remains largely in the red. Multiple new PDH units have been shut down for maintenance, with undetermined restart times, and there is still an expectation of rising PDH costs in the future. The new unit of Huizhou ExxonMobil has increased production, and among the existing units, more PE units have been shut down, resulting in a slight decrease in the operating rate, while the PP operating rate has increased slightly. The polyolefin market faces significant supply pressure. Polyolefin producers' inventories have accumulated significantly, and there is a large pressure to reduce inventory. Downstream demand is weak, with fewer new orders. The operating rate of the agricultural film industry has decreased seasonally, while the operating rates of other industries have remained stable, with mainly rigid demand for procurement [2]. Summary by Directory I. Polyolefin Basis Structure - The closing price of the L main contract was 7,187 yuan/ton (+97), and the closing price of the PP main contract was 7,074 yuan/ton (+44). The spot price of LL in North China was 7,230 yuan/ton (+20), and in East China was 7,300 yuan/ton (+70). The spot price of PP in East China was 7,200 yuan/ton (+40). The basis of LL in North China was 43 yuan/ton (-77), the basis of LL in East China was 113 yuan/ton (-27), and the basis of PP in East China was 126 yuan/ton (-4) [1]. II. Production Profit and Operating Rate - The PE operating rate was 84.1% (-0.8%), and the PP operating rate was 79.7% (+5.4%). The production profit of PE from oil was 416.8 yuan/ton (-101.4), the production profit of PP from oil was 106.8 yuan/ton (-101.4), and the production profit of PP from PDH was -429.9 yuan/ton (+95.5) [1]. III. Polyolefin Non-standard Price Difference - No specific data on polyolefin non-standard price differences are provided in the report. IV. Polyolefin Import and Export Profits - The import profit of LL was -187.6 yuan/ton (-20.0), the import profit of PP was -301.1 yuan/ton (+0.0), and the export profit of PP was 26.0 US dollars/ton (+0.0) [1]. V. Polyolefin Downstream Operating Rates and Downstream Profits - The operating rate of the agricultural film industry downstream of PE was 19.4% (-4.0%), the operating rate of the packaging film industry downstream of PE was 47.6% (-0.3%), the operating rate of the plastic weaving industry downstream of PP was 44.8% (-0.2%), and the operating rate of the BOPP film industry downstream of PP was 57.6% (-1.9%) [1]. VI. Polyolefin Inventories - Polyolefin producers' inventories have accumulated significantly, and there is a large pressure to reduce inventory, but no specific inventory data are provided [2]. Strategy - Unilateral: Be cautiously bearish on plastics. - Inter-period: None [3].

Group 1: Report Overview - Report Title: Polyolefin Morning Report - Report Date: May 7, 2025 - Analyst: Jin Zebin from Dayue Futures Investment Consulting Department [2][3] Group 2: Industry Investment Rating - No industry investment rating is provided in the report. Group 3: Core Views - The overall fundamentals of LLDPE and PP are bearish, but there are some bullish factors such as strong basis and inventory reduction. The market is expected to be volatile today [4][6]. Group 4: LLDPE Analysis Fundamentals - In April, the official PMI was 49%, down 1.5 percentage points from March, and the Caixin PMI was 50.4%, down 0.8 percentage points from March, both at recent lows. The central bank's statement on "timely reserve requirement ratio cuts and interest rate cuts" has increased market expectations for loose liquidity, but it will take time to transmit to real demand. OPEC+ announced production increases starting in June, weakening the cost support for oil-based polyolefins. In the second quarter, new production capacity is expected to be put into operation, the peak season for agricultural films has ended, and overall demand has declined. Affected by tariffs, the export demand for products is expected to weaken. The current spot price of LLDPE delivery products is 7350 (-20) [4]. Basis - The basis of the LLDPE 2509 contract is 363, with a premium ratio of 5.2%, indicating a bullish signal [4]. Inventory - The comprehensive PE inventory is 46.7 tons (-11.2), showing a bullish sign [4]. Market - The 20-day moving average of the LLDPE main contract is downward, and the closing price is below the 20-day line, suggesting a bearish trend [4]. Main Position - The net short position of the LLDPE main contract is decreasing, which is bearish [4]. Expectation - The LLDPE main contract is expected to be volatile and weak. With the decline in PMI data, OPEC's production increase and the weakening of oil prices, and the off-season for agricultural film demand, the industrial chain inventory is moderately high. It is expected that PE will be volatile today [4]. Group 5: PP Analysis Fundamentals - Similar to LLDPE, the fundamentals of PP are also bearish. The current spot price of PP delivery products is 7300 (-50). The anti - countermeasures will increase the cost of imported propane, and downstream demand is mainly for rigid needs recently. Affected by tariffs, the export demand for products is expected to weaken [6]. Basis - The basis of the PP 2509 contract is 305, with a premium ratio of 4.4%, indicating a bullish signal [6]. Inventory - The comprehensive PP inventory is 56.4 tons (-4.0), showing a bullish sign [6]. Market - The 20-day moving average of the PP main contract is downward, and the closing price is below the 20-day line, suggesting a bearish trend [6]. Main Position - The net short position of the PP main contract is decreasing, which is bearish [6]. Expectation - The PP main contract is expected to be volatile and weak. With the decline in PMI data, OPEC's production increase and the weakening of oil prices, and the rigid demand, the industrial chain inventory is moderate. It is expected that PP will be volatile today [6]. Group 6: Supply and Demand Balance Sheets Polyethylene - From 2018 to 2024, the production capacity of polyethylene has been increasing, with a growth rate ranging from 5.1% to 19.0%. The import dependence has been decreasing, from 46.3% in 2018 to 31.1% in 2023. The apparent consumption and actual consumption have also shown an overall upward trend, with some fluctuations in the growth rate [13]. Polypropylene - From 2018 to 2024, the production capacity of polypropylene has been increasing, with a growth rate ranging from 8.4% to 19.0%. The import dependence has been decreasing, from 18.6% in 2018 to 8.4% in 2023. The apparent consumption and actual consumption have also shown an overall upward trend, with a relatively stable growth rate [15].