1. Report Industry Investment Rating - Not mentioned in the provided content 2. Core View of the Report - The destocking cycle of styrene has ended, and the basis has weakened again. Overseas gasoline crack spreads are weak, reducing the support of overseas gasoline blending for pure benzene. Although the peak of pure benzene arrivals in China has passed, there is still some arrival pressure, and port inventories have continued to accumulate. The downstream styrene start - up has bottomed out and rebounded, while the non - styrene start - up is still poor. Styrene port inventories have rebounded again, entering the pre - holiday inventory accumulation cycle, and the downstream start - up has decreased again in the off - season [1][3] 3. Summary According to the Directory I. Pure Benzene and EB's Basis Structure, Inter - Period Spreads - Pure benzene's main basis is - 100 yuan/ton (+34), and the spread between East China pure benzene spot and M2 is - 135 yuan/ton (- 10 yuan/ton). Styrene's main basis is 71 yuan/ton (+61 yuan/ton) [1] II. Pure Benzene and Styrene Production Profits, Domestic and Foreign Spreads - Pure benzene's CFR China processing fee is 126 dollars/ton (- 6 dollars/ton), and FOB Korea processing fee is 119 dollars/ton (- 6 dollars/ton). Styrene's non - integrated production profit is - 190 yuan/ton (+30 yuan/ton), with an expected gradual compression [1] III. Pure Benzene and Styrene Inventories, Operating Rates - Pure benzene port inventory is 27.30 tons (+1.30 tons). Styrene's East China port inventory is 139,300 tons (+4,600 tons), and East China commercial inventory is 84,550 tons (+2,250 tons). Pure benzene's downstream operating rates vary: caprolactam is 69.20% (- 5.37%), phenol is 76.00% (- 3.50%), aniline is 61.35% (- 14.59%), and adipic acid is 59.60% (+0.40%). Styrene's operating rate is 69.1% (+0.8%) [1] IV. Styrene Downstream Operating Rates and Production Profits - EPS production profit is 186 yuan/ton (+70 yuan/ton), PS production profit is 36 yuan/ton (- 30 yuan/ton), and ABS production profit is - 892 yuan/ton (+57 yuan/ton). EPS operating rate is 51.81% (- 1.96%), PS operating rate is 54.50% (- 3.80%), and ABS operating rate is 70.10% (- 0.43%) [2] V. Pure Benzene Downstream Operating Rates and Production Profits - Caprolactam production profit is - 350 yuan/ton (+0), phenol - acetone production profit is - 902 yuan/ton (+25), aniline production profit is 789 yuan/ton (+178), and adipic acid production profit is - 1018 yuan/ton (+0). Caprolactam operating rate is 69.20% (- 5.37%), phenol operating rate is 76.00% (- 3.50%), aniline operating rate is 61.35% (- 14.59%), and adipic acid operating rate is 59.60% (+0.40%) [1] 4. Strategies - Unilateral: None - Basis and inter - period: Do reverse arbitrage on BZ2603 - BZ2605 when the price is high - Cross - variety: Short BZ2603 and long PX2605 [4]

Report Industry Investment Rating - Unilateral: Neutral [3] - Inter - period: None [3] - Cross - variety: None [3] Core Viewpoints - The EG basis continued to weaken. The spot price of EG in the East China market was 3668 yuan/ton, with a change of +32 yuan/ton from the previous trading day, an increase of +0.88%. The EG East China spot basis was -25 yuan/ton, a decrease of -5 yuan/ton month - on - month. The production profit of ethylene - based EG was -91 US dollars/ton, an increase of +4 US dollars/ton month - on - month, and that of coal - based syngas EG was -1050 yuan/ton, an increase of +26 yuan/ton month - on - month. The inventory of MEG in the main ports of East China was 84.4 tons (CCF data) or 75.5 tons (Longzhong data), showing an increase [1]. - On the supply side, domestic ethylene glycol load decreased from a high level, and the short - term supply pressure was relieved, but high supply would resume in January. Overseas supply returned to neutral, and the increase in port inventory could be moderately alleviated. On the demand side, polyester load remained firm with low inventory, but orders showed a marginal decline [2]. - For investment strategies, a neutral stance was recommended for unilateral trading. There was large production capacity release pressure, and the inventory accumulation pressure was still large from January to February [3]. Summary by Directory Price and Basis - The closing price of the EG main contract was 3758 yuan/ton, a change of +58 yuan/ton from the previous trading day, an increase of +1.57%. The spot price of EG in the East China market was 3668 yuan/ton, a change of +32 yuan/ton from the previous trading day, an increase of +0.88%. The EG East China spot basis was -25 yuan/ton, a decrease of -5 yuan/ton month - on - month [1]. Production Profit and Operating Rate - The production profit of ethylene - based EG was -91 US dollars/ton, an increase of +4 US dollars/ton month - on - month, and that of coal - based syngas EG was -1050 yuan/ton, an increase of +26 yuan/ton month - on - month [1]. International Spread - The report mentioned the international spread of ethylene glycol: US FOB - China CFR, but no specific data was provided [20]. Downstream Sales, Production and Operating Rate - Polyester load remained firm with low inventory, but orders showed a marginal decline. However, no specific data on downstream sales, production and operating rate was given in the provided text [2]. Inventory Data - According to CCF data, the inventory of MEG in the main ports of East China was 84.4 tons, an increase of +2.5 tons month - on - month; according to Longzhong data, it was 75.5 tons, an increase of +3.6 tons month - on - month. The planned arrival volume at the main ports of East China this week was 11.8 tons, and the arrival volume at secondary ports was 3 tons, which was slightly high overall, and the main ports were expected to have a slight inventory accumulation [1].

Report Summary 1. Report Industry Investment Rating - Not provided in the content 2. Core Viewpoints - Supply is abundant and production profits are high, but downstream price - pressing is firm, resulting in high pressure on spot market sales. It is expected that the inventories of both production enterprises and trading enterprises will increase slightly in the short term [2]. - The resumption of production by previously - shut - down enterprises drove the week - on - week increase in the capacity utilization rate of domestic tire enterprises last week. Entering the seasonal off - season, the overall shipment rhythm of enterprises is slow, and most enterprises are in a state of flexible production control, limiting the increase in the overall capacity utilization rate. As the finished product inventory continues to rise, some enterprises may conduct maintenance or reduce production in the later stage [2]. - The short - term forecast for the br2602 contract is to fluctuate in the range of 10,600 - 11,300 [2]. 3. Summary by Relevant Catalogs 3.1 Futures Market - The closing price of the main contract of synthetic rubber is 11,160 yuan/ton, with a week - on - week increase of 230 yuan/ton; the position of the main contract is 105,416, with a week - on - week increase of 4,360 [2]. - The synthetic rubber 2 - 3 spread is - 10 yuan/ton, with a week - on - week increase of 15 yuan/ton; the total warehouse receipt quantity of butadiene rubber is 4,560 tons, with no change [2]. 3.2 Spot Market - The mainstream price of BR9000 cis - butadiene rubber from Qilu Petrochemical in Shandong is 10,750 yuan/ton, unchanged; that from Daqing Petrochemical in Shandong is 10,700 yuan/ton, unchanged; that from Daqing Petrochemical in Shanghai is 10,750 yuan/ton, unchanged; and that from Maoming Petrochemical in Guangdong is 10,950 yuan/ton, unchanged [2]. - The basis of synthetic rubber is - 130 yuan/ton, with a week - on - week decrease of 35 yuan/ton [2]. 3.3 Upstream Situation - Brent crude oil is at 58.92 US dollars/barrel, down 1.64 US dollars; WTI crude oil is at 55.27 US dollars/barrel, down 1.55 US dollars [2]. - Naphtha CFR Japan is at 535.63 US dollars/ton, down 10.12 US dollars/ton; the Northeast Asian ethylene price is 745 US dollars/ton, unchanged; the CFR China butadiene price is 870 US dollars/ton, unchanged; the mainstream price of butadiene in the Shandong market is 7,850 yuan/ton, down 90 yuan/ton [2]. - The weekly capacity of butadiene is 15.93 tons, unchanged; the weekly capacity utilization rate is 71.17%, up 0.77 percentage points [2]. - The port inventory of butadiene is 35,900 tons, down 5,200 tons; the operating rate of Shandong local refinery atmospheric and vacuum distillation units is 55.9%, down 0.21 percentage points [2]. - The monthly output of cis - butadiene rubber is 13.01 tons, down 0.75 tons; the weekly capacity utilization rate is 70.69%, down 2.84 percentage points; the weekly production profit is 349 yuan/ton, down 135 yuan/ton [2]. - The weekly social inventory of cis - butadiene rubber is 3.2 tons, down 0.03 tons; the weekly manufacturer inventory is 26,500 tons, down 600 tons; the weekly trader inventory is 5,450 tons, up 220 tons [2]. - The weekly operating rate of domestic semi - steel tires is 71.57%, up 0.65 percentage points; the weekly operating rate of domestic all - steel tires is 64.07%, up 0.57 percentage points [2]. 3.4 Downstream Situation - The monthly output of all - steel tires is 1.301 million pieces, up 59,000 pieces; the monthly output of semi - steel tires is 5.831 million pieces, up 663,000 pieces [2]. - The inventory days of all - steel tires in Shandong are 40.58 days, up 1.07 days; the inventory days of semi - steel tires in Shandong are 45.51 days, up 0.56 days [2]. 3.5 Industry News - As of December 11, the capacity utilization rate of Chinese semi - steel tire sample enterprises was 70.14%, up 1.81 percentage points week - on - week and down 8.49 percentage points year - on - year; the capacity utilization rate of Chinese all - steel tire sample enterprises was 64.55%, up 0.55 percentage points week - on - week and up 6.07 percentage points year - on - year. The resumption of production by previously - shut - down enterprises drove the capacity utilization rate [2]. - In November, the domestic cis - butadiene rubber output was 13.01 tons, a month - on - month decrease of 0.75 tons (- 5.44%) and a year - on - year increase of 8.43%. The capacity utilization rate was 68.13%, a month - on - month decrease of 3.27 percentage points and a year - on - year increase of 0.53 percentage points [2]. - As of December 11, the domestic cis - butadiene rubber inventory was 3.20 tons, a decrease of 0.03 tons (- 1.18%) from the previous period. The inventory of some previously - shut - down production enterprises decreased significantly last week, but most production enterprises still faced high shipment pressure, and the overall inventory of production enterprises decreased slightly. Due to the continued price - pressing by downstream terminals, the shipment of traders was slow, and the inventory of trading enterprises increased slightly [2].

Report Industry Investment Rating - Not provided Core Viewpoints - The Central Financial and Economic Work Conference determined the economic direction. With the improvement of market sentiment boosted by macro - policies, the polyolefin market stopped falling and rebounded. However, the current weak supply - demand fundamentals provide insufficient support for prices [3]. - For PE, the supply is expected to be loose and the demand is weak, with high inventory pressure and limited oil - based cost support. The short - term fundamentals are difficult to be substantially boosted, and the rebound space is limited [3]. - For PP, the supply is expected to remain high, the demand follow - up is insufficient, the inventory level is high, and the cost support is weakened. The short - term rebound drive is limited, and attention should be paid to cost and supply changes [4]. Summary by Directory Market News and Important Data - **Price and Basis**: L主力合约收盘价为6557元/吨（+71），PP主力合约收盘价为6254元/吨（+125）；LL华北现货为6500元/吨（+0），LL华东现货为6580元/吨（+0），PP华东现货为6200元/吨（+0）；LL华北基差为 - 57元/吨（-71），LL华东基差为23元/吨（-71），PP华东基差为 - 54元/吨（-125） [1]. - **Upstream Supply**: PE开工率为84.1%（+0.1%），PP开工率为78.3%（+0.7%） [1]. - **Production Profit**: PE油制生产利润为183.5元/吨（-105.5），PP油制生产利润为 - 436.5元/吨（-105.5），PDH制PP生产利润为 - 817.3元/吨（+75.2） [1]. - **Import and Export**: LL进口利润为 - 112.2元/吨（-116.8），PP进口利润为 - 322.4元/吨（-26.9），PP出口利润为 - 10.6美元/吨（+3.4） [1]. - **Downstream Demand**: PE下游农膜开工率为46.4%（-1.7%），PE下游包装膜开工率为49.6%（-0.6%），PP下游塑编开工率为44.1%（+0.0%），PP下游BOPP膜开工率为62.9%（+0.3%） [2]. Market Analysis - **PE**: Supply side, in December, the overall PE maintenance volume is not high, and the planned maintenance volume in the future is also relatively limited. The PE start - up is expected to continue to rise, and a new 500,000 - ton FDPE device of BASF is expected to be put into operation at the end of the year, so the supply pressure is continuous. Demand side, the overall downstream start - up of PE continues to decline, with the agricultural film start - up entering the off - season, and the demand for packaging film also weakening. Inventory side, although the PE social inventory is decreasing, the absolute inventory levels of LL and LD are still high, and the inventory pressure is expected to be large. Cost side, the oil price trend is weak, and the oil - based cost support is relatively limited [3]. - **PP**: Supply side, the previously shut - down enterprises are gradually restarting, the planned maintenance volume is relatively small, and the supply is expected to remain high. Demand side, the downstream demand start - up of BOPP, plastic weaving, etc. is okay, but the downstream replenishment is cautious. Inventory side, the overall inventory level is still high. Cost side, the international oil price is weak, and the cost support of PDH is weakened. The short - term rebound drive is limited, and attention should be paid to cost and supply changes [4]. Strategy - **Unilateral**: Wait and see [5]. - **Inter - period Spread**: Go long on the L05 - 09 inter - period spread when it is low; go long on the PP05 - 09 inter - period spread when it is low [5]. - **Inter - variety Spread**: Short the L05 - PP05 spread when it is high [5].

1. Report Industry Investment Rating - No relevant information provided 2. Core View of the Report - The supply of synthetic rubber is sufficient and the production profit is high, but the downstream is firm in pressing prices, resulting in high pressure on the spot market. It is expected that the inventories of production enterprises and trading enterprises will both increase slightly in the short term. The resumption of production scheduling of previously overhauled enterprises has driven the capacity utilization rate of domestic tire enterprises to increase month - on - month, but it is in the seasonal off - season, with a slow overall shipment rhythm and limited capacity utilization rate increase. As the finished product inventory continues to rise, some enterprises may overhaul or reduce production in the future. The short - term price of the br2602 contract is expected to fluctuate between 10,300 and 11,000 [2] 3. Summary by Relevant Catalogs 3.1 Futures Market - The closing price of the main contract of synthetic rubber is 10,845 yuan/ton, with a month - on - month increase of 125 yuan/ton; the main contract position is 98,043, with a month - on - month increase of 8,209. The 1 - 2 spread of synthetic rubber is - 40 yuan/ton, with a month - on - month decrease of 10 yuan/ton [2] 3.2 Spot Market - The mainstream price of BR9000 from Qilu Petrochemical in Shandong is 10,650 yuan/ton; that from Daqing Petrochemical in Shandong is 10,600 yuan/ton; that from Daqing Petrochemical in Shanghai is 10,700 yuan/ton; and that from Maoming Petrochemical in Guangdong is 10,900 yuan/ton, all with no month - on - month change. The basis of synthetic rubber is - 95 yuan/ton, with a month - on - month decrease of 25 yuan/ton [2] 3.3 Upstream Situation - The price of Brent crude oil is 61.12 US dollars/barrel, with a month - on - month decrease of 0.16 US dollars/barrel; the price of WTI crude oil is 57.44 US dollars/barrel, with a month - on - month decrease of 0.16 US dollars/barrel. The price of naphtha CFR Japan is 548.75 US dollars/ton, with a month - on - month decrease of 5.5 US dollars/ton; the price of Northeast Asian ethylene is 745 US dollars/ton, with no month - on - month change; the intermediate price of butadiene CFR China is 870 US dollars/ton, with a month - on - month increase of 10 US dollars/ton; the market price of butadiene in Shandong is 7,500 yuan/ton, with a month - on - month decrease of 25 yuan/ton. The weekly production capacity of butadiene is 159,300 tons, with no month - on - month change; the weekly capacity utilization rate is 71.17%, with a month - on - month increase of 0.77 percentage points. The port inventory of butadiene is 35,900 tons, with a month - on - month decrease of 5,200 tons; the daily operating rate of Shandong local refineries' atmospheric and vacuum distillation units is 55.9%, with a month - on - month decrease of 0.21 percentage points [2] 3.4 Downstream Situation - The monthly output of butadiene rubber is 130,100 tons, with a month - on - month decrease of 7,500 tons, a month - on - month decrease of 5.44%, and a year - on - year increase of 8.43%. The weekly capacity utilization rate of butadiene rubber is 70.69%, with a month - on - month decrease of 2.84 percentage points. The weekly production profit of butadiene rubber is 349 yuan/ton, with a month - on - month decrease of 135 yuan/ton. The weekly social inventory of butadiene rubber is 32,000 tons, with a month - on - month decrease of 300 tons; the weekly manufacturer inventory is 26,500 tons, with a month - on - month decrease of 600 tons; the weekly trader inventory is 5,450 tons, with a month - on - month increase of 220 tons. The weekly operating rate of domestic semi - steel tires is 71.57%, with a month - on - month increase of 0.65 percentage points; the weekly operating rate of domestic all - steel tires is 64.07%, with a month - on - month increase of 0.57 percentage points. The monthly output of all - steel tires is 1.301 million pieces, with a month - on - month increase of 59,000 pieces; the monthly output of semi - steel tires is 5.831 million pieces, with a month - on - month increase of 663,000 pieces. The inventory days of all - steel tires in Shandong are 40.58 days, with a month - on - month increase of 1.07 days; the inventory days of semi - steel tires in Shandong are 45.51 days, with a month - on - month increase of 0.56 days [2] 3.5 Industry News - As of December 11, the capacity utilization rate of Chinese semi - steel tire sample enterprises was 70.14%, with a month - on - month increase of 1.81 percentage points and a year - on - year decrease of 8.49 percentage points; the capacity utilization rate of Chinese all - steel tire sample enterprises was 64.55%, with a month - on - month increase of 0.55 percentage points and a year - on - year increase of 6.07 percentage points. The resumption of production scheduling of previously overhauled enterprises has driven the capacity utilization rate. In November, the domestic butadiene rubber output was 130,100 tons, with a month - on - month decrease of 7,500 tons, a month - on - month decrease of 5.44%, and a year - on - year increase of 8.43%. The capacity utilization rate of butadiene rubber in November was 68.13%, with a month - on - month decrease of 3.27 percentage points and a year - on - year increase of 0.53 percentage points. As of December 11, the domestic butadiene rubber inventory was 32,000 tons, with a month - on - month decrease of 300 tons, a month - on - month decrease of 1.18% [2]

Report Industry Investment Rating No relevant content provided. Core Viewpoints - In the short - term, the domestic pure benzene has a large real - time arrival pressure, with port inventory accelerating accumulation. The overseas gasoline shortage has passed, but the price difference between the US and South Korea in the pure benzene market is still being repaired. Downstream提货 is weak, and downstream开工 is further decreasing in the off - season. Styrene maintains low - load maintenance, CPL开工 drops to the lowest level of the year, phenol开工 rebounds, and aniline and adipic acid开工 fluctuate within a range [3]. - For styrene, port inventory further declines, and the port basis remains strong. Styrene maintains low - level operation, port inventory continues to decrease, and downstream提货 is acceptable. The downstream开工 shows differentiation. EPS开工 rebounds slightly in the off - season but still has inventory pressure; ABS开工 decreases due to continuous finished - product inventory pressure; PS开工 continues to rise at the end of the year as the finished - product inventory pressure eases [3]. Summary by Directory 1. Pure Benzene and EB's Basis Structure, Inter - period Spread - The pure benzene main contract basis is - 130 yuan/ton (+12), and the spot - M2 paper cargo spread is - 150 yuan/ton (+35 yuan/ton). The EB main contract basis is 156 yuan/ton (- 48 yuan/ton) [1]. 2. Production Profits and Domestic - Foreign Spreads of Pure Benzene and Styrene - Pure benzene CFR China processing fee is 116 US dollars/ton (+2 US dollars/ton), and FOB South Korea processing fee is 113 US dollars/ton (+1 US dollar/ton). The pure benzene US - South Korea price difference is 195.0 US dollars/ton (+14.0 US dollars/ton). Styrene non - integrated production profit is - 140 yuan/ton (- 121 yuan/ton), and it is expected to gradually compress [1]. 3. Inventory and Operating Rates of Pure Benzene and Styrene - Pure benzene port inventory is 26.00 million tons (+3.60 million tons), and styrene East China port inventory is 146,800 tons (- 13,800 tons), and the East China commercial inventory is 87,800 tons (- 8,600 tons). Pure benzene开工 rate data is not provided, and styrene开工 rate is 68.9% (+1.6%) [1]. 4. Operating Rates and Production Profits of Styrene Downstream - EPS production profit is 191 yuan/ton (+153 yuan/ton), PS production profit is - 9 yuan/ton (+153 yuan/ton), and ABS production profit is - 776 yuan/ton (+89 yuan/ton). EPS开工 rate is 56.36% (+1.61%), PS开工 rate is 59.00% (+1.40%), and ABS开工 rate is 68.30% (- 2.90%) [2]. 5. Operating Rates and Production Profits of Pure Benzene Downstream - Caprolactam production profit is - 360 yuan/ton (+90), phenol - ketone production profit is - 952 yuan/ton (+25), aniline production profit is 848 yuan/ton (+95), and adipic acid production profit is - 1,129 yuan/ton (+59). Caprolactam开工 rate is 79.15% (- 7.53%), phenol开工 rate is 82.00% (+1.00%), aniline开工 rate is 77.23% (+0.04%), and adipic acid开工 rate is 60.00% (+0.60%) [1]. Strategy - Unilateral: None - Basis and Inter - period: Conduct inter - period positive arbitrage for EB2601 - EB2602 at low prices. - Cross - variety: Expand the spread of EB2601 - BZ2603 at low prices [4].

Report Industry Investment Rating No relevant content provided. Core Viewpoints of the Report - In the pure benzene market, there is significant short - term arrival pressure in China, leading to accelerated accumulation of port inventories. The most critical period for overseas gasoline has passed, but the price difference between the US and South Korea in the pure benzene market is still being repaired. Downstream提货 remains weak, and downstream operating rates are at a low level during the off - season. - In the styrene market, the port basis continues to be strong. Styrene maintains low - level operation, and port inventories continue to decline. Downstream operating rates show differentiation, with EPS operating rate rebounding slightly, ABS operating rate decreasing due to inventory pressure, and PS operating rate continuing to rise at the end of the year [3]. Summary by Relevant Catalogs 1. Pure Benzene and EB's Basis Structure, Inter - period Spread - Pure benzene: The main basis is - 142 yuan/ton (+48), and the spot - M2 spread is - 185 yuan/ton (+5 yuan/ton) [1]. - Styrene: The main basis is 204 yuan/ton (+73 yuan/ton) [1]. 2. Production Profits and Domestic - Foreign Spreads of Pure Benzene and Styrene - Pure benzene: CFR China processing fee is 115 dollars/ton (+0 dollars/ton), FOB South Korea processing fee is 113 dollars/ton (+3 dollars/ton), and the US - South Korea spread is 181.0 dollars/ton (+1.1 dollars/ton) [1]. - Styrene: Non - integrated production profit is - 19 yuan/ton (-4 yuan/ton), and it is expected to gradually compress [1]. 3. Inventories and Operating Rates of Pure Benzene and Styrene - Pure benzene: Port inventory is 26.00 million tons (+3.60 million tons), and the operating rate of downstream products shows different trends, with CPL operating rate dropping to the lowest level of the year, phenol operating rate rising, and aniline and adipic acid operating rates fluctuating within a range [1][3]. - Styrene: East China port inventory is 146,800 tons (-13,800 tons), East China commercial inventory is 87,800 tons (-8,600 tons), and the operating rate is 68.9% (+1.6%) [1]. 4. Operating Rates and Production Profits of Styrene's Downstream Products - EPS: Production profit is 38 yuan/ton (+20 yuan/ton), and the operating rate is 56.36% (+1.61%) [2]. - PS: Production profit is - 162 yuan/ton (+20 yuan/ton), and the operating rate is 59.00% (+1.40%) [2]. - ABS: Production profit is - 865 yuan/ton (-69 yuan/ton), and the operating rate is 68.30% (-2.90%) [2]. 5. Operating Rates and Production Profits of Pure Benzene's Downstream Products - Caprolactam: Production profit is - 450 yuan/ton (+20), and the operating rate is 79.15% (-7.53%) [1]. - Phenol - acetone: Production profit is - 977 yuan/ton (+0), and the operating rate is 82.00% (+1.00%) [1]. - Aniline: Production profit is 848 yuan/ton (+95), and the operating rate is 77.23% (+0.04%) [1]. - Adipic acid: Production profit is - 1188 yuan/ton (+45), and the operating rate is 60.00% (+0.60%) [1]. Strategies - Unilateral: None. - Basis and Inter - period: Go for long - short spread trading on EB2601 - EB2602 when the price is low. - Cross - variety: Expand the spread of EB2601 - BZ2603 when the price is low [4].

1. Report Industry Investment Rating No relevant information provided. 2. Core View of the Report - Urea new order transactions have slowed down, and spot prices have loosened. In the fourth - quarter, gas - based plant maintenance starts in December, while coal - based plant maintenance has gradually recovered. All new production capacities in 2025 have been put into operation, so the urea supply remains stable. Currently, off - season storage procurement is ongoing. The operating rates of compound fertilizers in the Northeast and Hubei regions continue to rise, and production scheduling in Shandong has increased, leading to an overall increase in the operating rate. Melamine plants have resumed production, and the operating rate has rebounded with rigid demand for procurement. As off - season storage, compound fertilizer procurement, and export procurement activities progress, urea enterprises' shipments have improved. Factory inventories have decreased, while port inventories have slightly increased. However, the subsequent procurement pace may slow down. Currently, new order procurement has slightly slowed down. Attention should be paid to the operating rate of compound fertilizers in the Northeast, the raw material procurement pace, the national off - season storage pace, and the sustainability of spot procurement sentiment [2]. 3. Summary by Relevant Catalogs I. Urea Basis Structure - On December 8, 2025, the urea main contract closed at 1,646 yuan/ton (-27). The ex - factory price of small - sized urea in Henan was 1,690 yuan/ton (unchanged), in Shandong it was 1,690 yuan/ton (-30), and in Jiangsu it was 1,690 yuan/ton (-20). The basis in Shandong was 44 yuan/ton (-3), in Henan was 44 yuan/ton (+7), and in Jiangsu was 44 yuan/ton (+7) [1]. II. Urea Output - As of December 8, 2025, the enterprise capacity utilization rate was 81.82% (0.08%). The total inventory of sample enterprises was 1.2905 billion tons (-73.4 million), and the port sample inventory was 0.105 billion tons (+5 million) [1]. III. Urea Production Profit and Operating Rate - As of December 8, 2025, the urea production profit was 160 yuan/ton (-30), and the export profit was 859 yuan/ton (-52). The capacity utilization rate of compound fertilizers was 40.53% (+3.47%), and the capacity utilization rate of melamine was 61.66% (+0.86%) [1]. IV. Urea FOB Price and Export Profit - No specific data summary other than the export profit of 859 yuan/ton (-52) on December 8, 2025, is provided. V. Urea Downstream Operating Rate and Orders - As of December 8, 2025, the capacity utilization rate of compound fertilizers was 40.53% (+3.47%), the capacity utilization rate of melamine was 61.66% (+0.86%), and the pre - received order days of urea enterprises were 7.35 days (+0.70) [1]. VI. Urea Inventory and Warehouse Receipts - As of December 8, 2025, the total inventory of sample enterprises was 1.2905 billion tons (-73.4 million), and the port sample inventory was 0.105 billion tons (+5 million) [1]. Strategy - Unilateral: Oscillate and correct, and close the cash - and - carry arbitrage positions opportunistically. - Inter - delivery: Wait and see. - Inter - commodity: None [3].

Report Industry Investment Rating - Unilateral: Neutral [3] Core Viewpoints - The main port of EG continued to accumulate inventory this week. The closing price of the EG main contract was 3826 yuan/ton, up 4 yuan/ton from the previous trading day, an increase of 0.10%. The spot price of EG in the East China market was 3813 yuan/ton, down 16 yuan/ton from the previous trading day, a decrease of 0.42%. The spot basis of EG in East China was -7 yuan/ton, down 9 yuan/ton month-on-month [1]. - The overall supply-demand logic of the fundamentals: On the supply side, the domestic ethylene glycol load decreased from a high level, and some short-process oil chemical plants had relatively high production pressure. On the demand side, the polyester load with low inventory provided good support, but the orders weakened marginally [2]. - The strategy is unilateral neutral. The commissioning pressure is relatively large, and with the increase in port inventory, the liquidity of goods in the market has increased. However, the price center of ethylene glycol has now fallen to the lowest level in the past two years, and recently, negative feedback from high-cost plants has gradually emerged, and the pressure of inventory accumulation has been alleviated [3]. Summary by Directory Price and Basis - The closing price of the EG main contract was 3826 yuan/ton, up 4 yuan/ton from the previous trading day, an increase of 0.10%. The spot price of EG in the East China market was 3813 yuan/ton, down 16 yuan/ton from the previous trading day, a decrease of 0.42%. The spot basis of EG in East China was -7 yuan/ton, down 9 yuan/ton month-on-month [1]. Production Profit and Operating Rate - According to Longzhong data, the production profit of ethylene-based EG was -71 US dollars/ton, down 6 US dollars/ton month-on-month, and the production profit of coal-based syngas EG was -1058 yuan/ton, down 38 yuan/ton month-on-month [1]. International Price Difference - No specific data was provided in the content. Downstream Sales, Production, and Operating Rate - The inventory of polyester was at a low level, and the polyester load provided good support, but the orders weakened marginally [2]. Inventory Data - According to CCF data, the inventory of MEG in the main port of East China was 75.3 tons, up 2.1 tons month-on-month; according to Longzhong data, the inventory of MEG in the main port of East China was 71.9 tons, up 1.1 tons month-on-month. The total planned arrivals at the main port of East China this week were 16.1 tons, and the arrivals at the secondary port were 4.1 tons, which were relatively high, and it is expected that the main port will continue to accumulate inventory [1].

1. Report Industry Investment Rating - No information provided in the given content 2. Core Viewpoints of the Report - Pure benzene: Overseas gasoline supply is gradually recovering, leading to high short - term arrival pressure of pure benzene and a faster accumulation rate of port inventory. Domestic cracking load is low, and pure benzene production has declined. Downstream production is in the off - season and has further decreased, with styrene maintaining low - load maintenance, CPL production dropping to the lowest level of the year, phenol production rising, and aniline and adipic acid production fluctuating within a range [2] - Styrene: Styrene is still in the low - production maintenance stage, and the restart plan has been postponed. The port basis has strengthened slightly again, and factory inventory has declined again, but port inventory has not continued to be destocked, and there is still arrival pressure. Downstream enterprise procurement has driven the basis to strengthen. The downstream production shows differentiation. EPS production has a slight rebound in the off - season, but there is still inventory pressure; ABS production has decreased due to continuous finished - product inventory pressure; PS production has continued to rise since the end of the year as the finished - product inventory pressure has been alleviated [2] 3. Summary According to Relevant Catalogs 3.1 Pure Benzene and EB's Basis Structure, Inter - period Spread - The report presents figures related to the basis of pure benzene and EB, including the pure benzene main contract basis, pure benzene spot - M2 paper cargo spread, pure benzene continuous first - contract to continuous third - contract spread, EB main contract basis, and EB continuous first - contract to continuous third - contract spread [7][12][16] 3.2 Pure Benzene and Styrene Production Profits, Domestic and Foreign Spreads - Figures cover various aspects such as naphtha processing fees, pure benzene FOB South Korea - naphtha CFR Japan spread, styrene non - integrated device production profit, pure benzene FOB US Gulf - FOB South Korea spread, pure benzene FOB US Gulf - CFR China spread, pure benzene FOB Rotterdam - CFR China spread, pure benzene import profit, and styrene import profit [19][21][29] 3.3 Pure Benzene and Styrene Inventory, Production Rate - For pure benzene, it shows the inventory in East China ports and the production rate. For styrene, it includes the inventory in East China ports, East China commercial inventory, factory inventory, and the production rate [35][40][41] 3.4 Styrene Downstream Production and Production Profits - Covers the production rates and production profits of EPS, PS, and ABS [46][47][51] 3.5 Pure Benzene Downstream Production and Production Profits - Includes the production rates and production profits of caprolactam, phenol - ketone, aniline, adipic acid, and other downstream products, as well as the production profits of related products such as PA6 regular spinning bright, nylon filament, bisphenol A, PC, epoxy resin E - 51, pure MDI, and polymer MDI [55][62][70] 4. Strategies - Unilateral: No strategy [3] - Basis and inter - period: Consider a positive inter - period spread arbitrage for EB2601 - EB2602 when the price is low [3] - Cross - variety: Consider widening the spread for EB2601 - BZ2603 when the price is low [3]