Core Insights - On July 10, styrene futures rose by 2.31% to 7520 CNY/ton, while pure benzene futures increased by 2.96% to 6253 CNY/ton, indicating a shift in market dynamics [1] - The overall supply of styrene remains stable with a weekly production of 36.7 million tons and an operating rate of 80.0%, despite a slight decrease in downstream demand [1] - The pure benzene market is experiencing a dual increase in supply and demand, with a notable rise in the operating rate of downstream products [1] Supply Dynamics - Styrene inventory at sample factories decreased by 0.6 million tons to 194,000 tons, while Jiangsu port inventory increased by 1.4 million tons to 99,000 tons, indicating a mixed inventory trend [1] - The supply of styrene is supported by the gradual return of maintenance units, maintaining stable production levels [1] - Pure benzene supply remains steady with little change in the operation of petroleum benzene units, while hydrogenated benzene operations have reached historical highs [1] Demand Trends - Downstream operating rates for 3S products have generally declined, with EPS at 55.9% (-3.84%), ABS at 65.0% (-1.0%), and PS at 52.4% (-5.0%) [1] - The demand for pure benzene has rebounded to pre-maintenance levels, driven by an increase in the operating rate of caprolactam [1] - The styrene market is characterized by strong supply and weak demand, with expectations of a traditional off-season affecting consumption outlook [1] Market Outlook - The third quarter may see new downstream facilities coming online, which could create arbitrage opportunities if supply and demand misalign [1] - Despite some companies stockpiling to support basis, the overall supply-demand fundamentals appear weak, necessitating attention to basis declines and the progress of new facilities [1] - Recent oil price rebounds and commodity market sentiment have provided short-term support for futures prices [1]

Core Viewpoint - Top banks, including JPMorgan and Morgan Stanley, achieved their best performance in five years in Q1 2025 due to arbitrage opportunities leading to a surge of gold inflows into the U.S. [1] Group 1: Performance and Revenue - Twelve major banks earned $500 million from precious metals trading in Q1 2025, the second-highest figure in a decade, approximately double the average quarterly revenue over the past ten years [1] - The unexpected gains were partly due to high physical gold premiums in the U.S., driven by market concerns over potential tariffs on precious metals [2] - Morgan Stanley delivered 67 tons of gold to the New York Mercantile Exchange in Q1, the highest among all banks, valued at approximately $7 billion at current market prices [3] Group 2: Market Dynamics - The significant rise in gold and silver prices on the Comex far exceeded other international benchmarks, allowing traders to profit by purchasing physical gold in other trading centers and transporting it to the U.S. before tariffs took effect [2] - JPMorgan delivered over $4 billion worth of gold for settling February futures contracts, marking one of the largest single-day delivery notifications in the exchange's history [3] - The arbitrage opportunities were reminiscent of 2020 when the pandemic created long-term profit opportunities for banks that managed to transport physical gold to New York [2][5] Group 3: Market Influences - The market volatility triggered by President Trump's tariff plans contributed to the revenue growth of these twelve banks [6] - The trading volume in the London market has continued to rise against the backdrop of gold prices doubling since late 2022 [6]

Core Viewpoint - The North Securities 50 Index will undergo its second adjustment of the year on June 16, which is expected to create arbitrage opportunities due to passive rebalancing of index funds [1] Group 1 - The adjustment of the North Securities 50 Index is anticipated to influence stock movements and create potential investment opportunities [1]

Investment Rating - The industry investment rating is not explicitly stated in the report, but it implies a positive outlook for certain sectors based on fund flows and market dynamics [15]. Core Insights - The report highlights significant fund inflows into sectors such as computer, electronics, and machinery, while sectors like defense, light manufacturing, and agriculture have seen outflows [3][13]. - The report suggests monitoring the crowdedness of various industries, indicating that textiles, light manufacturing, and beauty care are currently crowded, while coal has a lower level of crowdedness, suggesting potential investment opportunities [3]. - The ETF products show a mixed performance, with notable inflows in industry-themed ETFs like robotics and semiconductor ETFs, while some broad-based ETFs experienced outflows [7][14]. Summary by Sections Fund Flows - The report indicates a net outflow of 4.45 billion CNY from broad-based ETFs, with the top inflows seen in the Shanghai 50 ETF (+5.55 billion CNY) and the top outflows in the CSI 300 ETF (-2.09 billion CNY) [7]. - Industry-themed ETFs saw a net inflow of 9.35 billion CNY, with the robotics ETF leading at +3.33 billion CNY [7]. Industry Crowdedness Monitoring - The crowdedness model shows that textiles, light manufacturing, and beauty care are currently at high levels of crowdedness, while coal is at a lower level, suggesting a potential opportunity for investment [3]. ETF Product Signals - The report provides signals for potential ETF products to watch, including the Hong Kong National Enterprise ETF and the High-End Manufacturing ETF, indicating they may present investment opportunities [14].