Report Industry Investment Ratings - Cotton: ★☆★ [1] - Pulp: ★★★ [1] - Sugar: ★★★ [1] - Apple: ★★★ [1] - Timber: ☆☆☆ [1] - Natural Rubber: ★☆☆ [1] - 20 - number Rubber: ★☆☆ [1] - Butadiene Rubber: ★☆☆ [1] Core Views - The market for soft commodities shows diverse trends. Some products like cotton and pulp have specific price - related and supply - demand factors influencing their market conditions, and different investment suggestions are given for each commodity based on their unique situations [2][3][4][5][6][7] Summary by Commodity Cotton & Cotton Yarn - Zhengzhou cotton futures continued to rise, breaking through the shock range. Although new cotton production increased significantly this year, commercial inventory is not high and the sales progress is fast, providing strong support to the market. Currently in the off - season, overall demand remains stable. The market has certain positive expectations for the new - year planting in China. As of November 27th, the cumulative processed lint cotton was 528.5 million tons, a year - on - year increase of 79.1 million tons. As of November 15th, the cotton commercial inventory was 363.97 million tons, a year - on - year decrease of 20.43 million tons. The price of pure cotton yarn remained stable overall, with insufficient new orders. After the breakthrough of Zhengzhou cotton, the industry can consider hedging opportunities, and the operation should be to wait and see or go long with a light position on dips [2] Sugar - Overnight, the US sugar price pulled back. In Brazil, although the sugarcane crushing volume and sugar yield decreased this year, the sugar - making ratio increased, compensating for the loss of sugar production, and the sugar production will remain at a high level. In the Northern Hemisphere, India and Thailand started sugarcane crushing, and due to good weather conditions, the sugar production is expected to increase year - on - year. In China, Zhengzhou sugar futures were weak. In October, the import volume of syrup decreased year - on - year, but sugar imports were relatively high, and there is still some pressure on the supply side. The market's trading focus has shifted to the output estimate of the next sugar - making season. The sugar price is expected to remain weak [3] Apple - The futures price was strong. In the spot market, transactions in Shandong were mainly for small and medium - sized apples, and other apple sources had few transactions. In the northwest region, merchants packed their own apple sources and sent them to the market, and the mainstream price remained stable. As of November 28th, the national cold - storage apple inventory in the new season was 729.35 million tons, a year - on - year decrease of 13.21%. The market's trading logic has shifted from cold - storage inventory volume to sales expectations. There is a high divergence between bulls and bears, and attention should be paid to the inventory - reduction situation [4] 20 - number Rubber, Natural Rubber & Synthetic Rubber - Today, the futures prices of natural rubber (RU) and 20 - number rubber (NR) rose slightly, and the futures price of butadiene rubber (BR) rose sharply. The domestic natural rubber spot price was stable, and the synthetic rubber spot price increased. The global natural rubber supply will shift from the high - yield period to the low - yield period, and the Yunnan production area in China has entered the suspension - cutting period first. The operating rate of domestic butadiene rubber plants dropped significantly last week. The demand for rubber showed average performance. Natural rubber continued to accumulate inventory, while synthetic rubber started to reduce inventory. The cost support was stable, and market sentiment improved. The strategy is to go long on rebounds and pay attention to cross - variety arbitrage opportunities [5] Pulp - Today, pulp futures rose significantly, and the 01 contract significantly reduced its positions. The spot price followed the futures price up. As of November 27th, 2025, the inventory of the mainstream sample ports of Chinese pulp was 217.2 million tons, a decrease of 0.1 million tons from the previous period, a month - on - month decrease of 0.05%. The domestic port inventory is still at a high level, the supply is still relatively loose, and the pulp demand continues to be weak. The pulp price rebounded significantly after falling near the previous low, and the medium - term trend may still be range - bound. The operation should be to wait and see or conduct short - term operations [6] Logs - The futures price fluctuated. In the spot market, the price quoted at Taicang Port decreased by 10 yuan. The external price quote is still high, and the domestic spot price remains weak. It is expected that imports will not increase significantly in the short term, and the domestic supply may continue to remain at a low level. The port delivery volume is maintained above 60,000 cubic meters, and the demand supports the price. The total log inventory is low, and the inventory pressure is relatively small. The low inventory provides certain support to the price, and the operation should be to wait and see [7]

甲醇日报 | 2025-12-02 伊朗装置检修，但短期到港压力仍大 甲醇观点 市场要闻与重要数据 内地方面：Q5500鄂尔多斯动力煤465元/吨（+0），内蒙煤制甲醇生产利润590元/吨（+3）；内地甲醇价格方面，内 蒙北线1995元/吨（+3），内蒙北线基差459元/吨（+2），内蒙南线1975元/吨（+0）；山东临沂2245元/吨（+15），鲁 南基差309元/吨（+14）；河南2125元/吨（+25），河南基差189元/吨（+24）；河北2130元/吨（+0），河北基差254元 /吨（-1）。隆众内地工厂库存373712吨（+15012），西北工厂库存209000吨（+20500）；隆众内地工厂待发订单230710 吨（-15610），西北工厂待发订单113500吨（-11900）。 港口方面：太仓甲醇2118元/吨（+8），太仓基差-18元/吨（+7），CFR中国246美元/吨（+1），华东进口价差-30元/ 吨（-2），常州甲醇2345元/吨；广东甲醇2090元/吨（+10），广东基差-46元/吨（+9）。隆众港口总库存1363500吨 （-115840），江苏港口库存748000吨（-71300 ...

Core Insights - The futures market is increasingly empowering the development of a modern industrial system and agricultural strength in Henan province, with various futures products being launched that align with the local industrial structure [1][2] Group 1: Agricultural Futures - In key peanut-producing areas like Junxian, farmers and buyers have adapted to using futures prices for transactions, enhancing market efficiency [1] - The "Huangludian Peanut" from Nanzhao County has gained recognition through futures delivery, showcasing the impact of futures on agricultural branding [1] - The futures market supports the entire peanut industry chain by providing price discovery and risk management, contributing to stable operations and quality improvements [1] Group 2: Industrial Futures - Zhengzhou Commodity Exchange (ZCE) has listed 14 agricultural futures products, covering Henan's key agricultural products, while also offering industrial futures that align with the local industrial system [1] - The futures market plays a crucial role in the "low-cost + differentiation" strategy of companies like Henan Xinlianxin Chemical Industry Group, optimizing procurement, sales decisions, and inventory management [1] Group 3: Regional Development and Policy Support - The integration of transportation, logistics, and industrial development in Henan is enhanced by the role of futures delivery warehouses, which have evolved from basic storage to comprehensive supply chain services [2] - The region has implemented supportive policies to strengthen ZCE's pricing influence and outreach, aiming to enhance the futures market's contribution to Henan's high-quality economic development [2]

Report Industry Investment Ratings - Cotton: ☆☆☆, indicating a relatively balanced short - term long/short trend with poor operability on the current market [1] - Pulp: ★☆☆, suggesting a bullish/ bearish bias with a driving force for price movement, but limited operability on the market [1] - Sugar: ☆☆☆, representing a relatively balanced short - term long/short trend and poor operability [1] - Apple: ☆☆☆, showing a relatively balanced short - term long/short trend and poor operability [1] - Timber: ☆☆☆, indicating a relatively balanced short - term long/short trend and poor operability [1] - Natural Rubber: ★☆☆, suggesting a bullish/ bearish bias with a driving force for price movement, but limited operability on the market [1] - 20 - rubber: ★☆☆, indicating a bullish/ bearish bias with a driving force for price movement, but limited operability on the market [1] - Butadiene Rubber: ★☆☆, suggesting a bullish/ bearish bias with a driving force for price movement, but limited operability on the market [1] Core Views - The cotton market has support from low commercial inventories and fast sales progress, but short - term upward space is still cautiously viewed. The sugar market is expected to remain weak. The apple market has increased long - short divergence, and the focus is on de - stocking. The natural rubber and synthetic rubber markets have different supply and demand and inventory situations, with opportunities for cross - variety arbitrage. The pulp market is in a situation of high inventory and weak demand. The timber market has low - inventory support [2][3][4][6][7] Summary by Commodity Cotton & Cotton Yarn - Zhengzhou cotton has broken through the previous trading range. Although new cotton production has increased significantly this year, commercial inventories are not high, and sales progress is fast, providing strong support to the market. The market has a certain bullish expectation for the new - year planting in China. Pure cotton yarn prices are stable, with insufficient new orders. After the breakthrough of Zhengzhou cotton, the industry can pay attention to hedging opportunities, and the operation is to wait and see or go long lightly on dips [2] Sugar - Overnight, US sugar fluctuated. Brazil's sugar production will remain high. In the Northern Hemisphere, India and Thailand are gradually starting to crush, and sugar production is expected to increase year - on - year. In China, Zhengzhou sugar is running weakly. The market's trading focus is shifting to the next season's output estimate. Overall, sugar prices are expected to remain weak [3] Apple - The futures price is running strongly. In the spot market, transactions in Shandong are mainly for small and medium - sized fruits, and prices in the northwest are stable. As of November 20, the national cold - storage apple inventory is 733 million tons, a year - on - year decrease of 12.73%. The market's trading logic has shifted from cold - storage inventory to sales expectations. The de - stocking situation will be the main trading point in the future [4] 20 - rubber, Natural Rubber & Synthetic Rubber - The futures prices of natural rubber RU and 20 - rubber NR continued to rise slightly, and the butadiene rubber BR futures price fluctuated. The global natural rubber supply is in a high - yield period, but the Yunnan产区 in China has entered the non - production period. The operating rate of domestic butadiene rubber plants has dropped significantly. The demand performance is average, natural rubber inventories are increasing, synthetic rubber inventories are starting to decrease, and there are opportunities for cross - variety arbitrage [6] Pulp - Pulp futures rose slightly. As of November 27, 2025, the inventory of mainstream pulp ports in China was 217.2 million tons, a decrease of 0.1 million tons from the previous period, with a month - on - month decrease of 0.05%. The supply is loose, demand is weak, and the basis has narrowed significantly. The operation is to wait and see [7] Timber - The futures price is fluctuating, and the spot price is stable. The external market price is still high, and domestic supply is expected to remain low. Port outbound volume is above 60,000 cubic meters, and low inventory supports the price. The operation is to wait and see [8]

上游供应方面，PE开工率为82.7%（-0.4%），PP开工率为78.3%（-1.3%）。 生产利润方面，PE油制生产利润为350.5元/吨（+9.1），PP油制生产利润为-389.5元/吨（+9.1），PDH制PP生产利润 为-393.0元/吨（-53.6）。 进出口方面，LL进口利润为-21.4元/吨（-54.6），PP进口利润为-221.6元/吨（-54.4），PP出口利润为1.6美元/吨（+6.8）。 下游需求方面，PE下游农膜开工率为49.9%（-0.1%），PE下游包装膜开工率为50.9%（+0.5%），PP下游塑编开工率 为44.2%（+0.0%），PP下游BOPP膜开工率为62.6%（+0.0%）。 市场分析 聚烯烃日报 | 2025-11-25 需求季节性转弱，短期上行驱动有限 市场要闻与重要数据 价格与基差方面，L主力合约收盘价为6793元/吨（+23），PP主力合约收盘价为6372元/吨（+15），LL华北现货为6800 元/吨（+0），LL华东现货为6900元/吨（+0），PP华东现货为6380元/吨（-20），LL华北基差为7元/吨（-23），LL华 东基差为107元/吨（-23）， ...

Report Summary 1. Report Industry Investment Rating No relevant content provided. 2. Core Views - The current focus of soybean meal futures trading is on whether the 53 bushels/acre yield of US soybeans on the external market will continue to decrease, and whether the 12 million tons of Chinese purchases claimed by the US can be reflected in the annual balance sheet. If the inventory remains around 300 million bushels, the annual price of US soybeans will fluctuate around the cost line, and the domestic soybean meal will lack a single - sided driver. The near - month contracts will strengthen due to seasonal de - stocking, while the far - month contracts will be weak due to Brazilian supply pressure, continuing the long - near and short - far positive spread logic [4]. - Rapeseed meal will remain in a state of weak supply and demand in the fourth quarter. With the expectation of additional Sino - Canadian talks and the arrival of Australian rapeseed after November, the subsequent demand growth is limited, and supply is expected to recover. The coastal and oil mill rapeseed meal inventories remain high, so it is regarded as weak. Attention can be paid to the new warrant registration after the centralized cancellation of warrants in November [4]. 3. Summary by Related Catalogs 3.1 Price Forecast and Hedging Strategies - **Price Forecast**: The monthly price range of soybean meal is predicted to be 2800 - 3300, with a current 20 - day rolling volatility of 9.2% and a 3 - year historical percentile of 5.0%. The monthly price range of rapeseed meal is predicted to be 2250 - 2750, with a current 20 - day rolling volatility of 15.8% and a 3 - year historical percentile of 20.8% [3]. - **Hedging Strategies**: - For traders with high protein inventory, they can short 25% of M2601 soybean meal futures at 3300 - 3400 to lock in profits and cover production costs [3]. - Feed mills with low inventory can buy 50% of M2601 soybean meal futures at 2850 - 3000 to lock in procurement costs [3]. - Oil mills worried about excessive imported soybeans and low soybean meal prices can short 50% of M2601 soybean meal futures at 3100 - 3200 to lock in profits and cover production costs [3]. 3.2 Core Contradictions - **Soybean Meal**: The external market focuses on whether the 53 bushels/acre yield of US soybeans will be further reduced and whether the 12 million tons of Chinese purchases can be realized. The domestic market has a positive spread logic of near - strong and far - weak [4]. - **Rapeseed Meal**: It will be in a state of weak supply and demand in the fourth quarter. With the expected supply recovery and limited demand growth, it is regarded as weak, and attention can be paid to the warrant registration after the November cancellation [4]. 3.3 Market Influencing Factors - **Positive Factors**: Brazilian export premiums support far - month contract prices, the external market balance sheet's price range moves up, and the pressure on near - month contracts eases during the warrant cancellation month [8]. - **Negative Factors**: The current near - month supply of imported soybeans is high, Brazilian planting is smooth with a high - yield expectation, and the far - month supply gap is filled under the Sino - US negotiation and procurement background [8]. 3.4 Market Quotes - **Futures Prices**: The closing price of soybean meal 01 is 3012, down 5 (- 0.17%); soybean meal 05 is 2803, down 8 (- 0.28%); soybean meal 09 is 2915, down 11 (- 0.38%); rapeseed meal 01 is 2431, up 19 (0.79%); rapeseed meal 05 is 2367, down 10 (- 0.42%); rapeseed meal 09 is 2435, down 9 (- 0.37%); CBOT soybeans are 1123, unchanged; the offshore RMB is 7.1198, up 0.0019 (0.03%) [9]. - **Spreads and Basis**: The spreads and basis of soybean meal and rapeseed meal futures and spot are presented in the report, such as the M01 - 05 spread of soybean meal is 209, up 3, and the RM01 - 05 spread of rapeseed meal is 64, up 29 [10]. 3.5 Import Costs and Profits - The import cost of US Gulf soybeans (23%) is 4759.4897 yuan/ton, up 47.3957 yuan/ton, with a profit of - 879.9197 yuan/ton. The import cost of Brazilian soybeans is 3817.15 yuan/ton, down 37.46 yuan/ton, with a profit of 182.5377 yuan/ton. The import cost difference between US Gulf (3%) and US Gulf (23%) is - 773.9008 yuan/ton, up 7.8381 yuan/ton. The import profit of Canadian rapeseed on the futures market is 692 yuan/ton, up 33 yuan/ton, and the spot profit is 954 yuan/ton, up 40 yuan/ton [11].

Report Summary 1. Report Industry Investment Rating No information regarding the industry investment rating is provided in the given reports. 2. Core Viewpoints - The current core contradictions affecting the propylene trend include the potential repeated submission of "anti - involution" with no actual progress, coal price weakness driving the futures market down, spot price fluctuations due to individual device operations, sufficient supply and weak demand in the PP market, and continuous losses in PDH profits [2]. - There are both positive and negative factors in the propylene market. Positive factors are that device overhauls in some enterprises such as Binhuahua, Haiwei, and Xintai have led to a rebound in spot prices. Negative factors are that PDH has not shown significant negative feedback in the short - term despite losses, and the downstream market, especially the PP market, remains weak [3]. 3. Summary by Directory 3.1 Propylene Price Forecast and Hedging Strategies - The monthly price range forecast for propylene is 5700 - 6200 yuan/ton, with a current 20 - day rolling volatility of 0.121 and a 3 - year historical volatility percentage of 0.5432 [1]. - For inventory management, when the finished product inventory is high and there are concerns about price drops, it is recommended to short - sell propylene futures (PL2603) at a 50% hedging ratio when the price is between 6100 - 6200 yuan/ton and short - sell call options (PL2601C6000) at a 25% ratio when the price is between 60 - 80 yuan. For procurement management, when the regular inventory is low, it is recommended to buy propylene futures (PL2603) at a 25% hedging ratio when the price is between 5700 - 5800 yuan/ton and short - sell put options (PL2601P5800) at a 25% ratio when the price is between 60 - 80 yuan [1]. 3.2 Industry Data - **Upstream raw material prices**: On November 19, 2025, Brent crude oil was at $63.16/barrel, down $1.2 from the previous day; WTI was at $59.41/barrel, down $1.16. Other upstream raw materials such as MOPJ, NWE NAP, etc., also showed price changes. For example, MOPJ was at $561.94/ton, down $9.39 [5]. - **Mid - stream propylene prices**: On November 19, 2025, the price of propylene in the East China region was 5925 yuan/ton, up 10 yuan from the previous day; the price difference between CFR China and FOB South Korea remained at $35/ton [5]. - **Downstream product prices**: On November 19, 2025, the price of polypropylene powder was 6200 yuan/ton, unchanged from the previous day; the price of polypropylene granules was 6440 yuan/ton, also unchanged. Other downstream products like acrylonitrile, acrylic acid, etc., also had corresponding price changes [5]. - **Profit situation**: Main refinery profit was 704.12 yuan/ton, and MTO monomer profit was - 179.17 yuan/ton. PDH profit was in a continuous loss state, with propylene PDH profit - FEI at - 225.20 yuan/ton [5]. - **Price difference situation**: The price difference between MOPJ and propylene was 1829.03 yuan/ton, and the price difference between PP powder and propylene was not available on November 19, 2025 [5].

Report Summary 1. Report Industry Investment Rating No information provided on the industry investment rating. 2. Core View of the Report The demand side of ethylene glycol (EG) has changed little. Polyester demand is expected to remain around 91% in November and weaken seasonally from December. Recently, there have been many unexpected incidents in the supply - side devices, and the subsequent inventory accumulation slope has eased. Against the background of the strong trend of thermal coal, the cost - side support has strengthened, making it difficult for the price to break below 3900. However, in the long run, the slowdown and delay of inventory accumulation are just rhythm issues, and the pattern of valuation pressure under the expectation of supply - demand surplus is difficult to reverse. The operation idea of shorting on rallies remains unchanged. If the valuation continues to compress, there will be strong supply - side support around 3700. For the 01 contract, below 3900, short positions can be closed and call options can be sold instead [3]. 3. Summary According to Relevant Contents Polyester Price and Volatility - The monthly price range of ethylene glycol is predicted to be 3750 - 4200, with a current 20 - day rolling volatility of 15.19% and a 3 - year historical percentile of 26.4%. For PX, it is 6300 - 7100, 14.65%, and 37.0% respectively; for PTA, 4300 - 4900, 13.86%, and 23.8%; for bottle chips, 5400 - 6000, 10.84%, and 27.6% [2]. Polyester Hedging Strategies - **Inventory Management**: When the finished - product inventory is high and there is concern about the decline of ethylene glycol prices, for the long - position spot exposure, one can short EG2601 futures to lock in profits (25% hedging ratio, entry range 4000 - 4100). One can also buy EG2601P3800 put options to prevent price drops and sell EG2601C4050 call options to reduce capital costs (50% hedging ratio, entry range 40 - 80) [2]. - **Procurement Management**: When the procurement of regular inventory is low and one hopes to purchase according to order situations, for the short - position spot exposure, one can buy EG2601 futures to lock in procurement costs (50% hedging ratio, entry range 3800 - 3900). One can also sell EG2601P3800 put options to collect premiums and lock in the purchase price if the price drops (75% hedging ratio, entry range 40 - 80) [2]. Core Contradiction Analysis - The demand for polyester is expected to remain stable in November and weaken seasonally from December. The supply - side device incidents have eased the inventory accumulation slope, and the cost - side support has strengthened. But in the long run, the supply - demand surplus situation remains, and the operation strategy is to short on rallies. The price is expected to get strong support around 3700. For the 01 contract, short positions can be closed and call options can be sold below 3900 [3]. 利多解读 (Positive Factors) - There have been many unexpected shutdowns of ethylene glycol devices at home and abroad recently. In China, Guangxi Huayi (200,000 tons), Hongsifang (300,000 tons), and Sinochem Quanzhou (500,000 tons, rumored) have shut down, with a total loss of 1 million tons of production capacity. Abroad, a 750,000 - ton/year MEG device in Malaysia has been shut down since late September and will continue until 2027, and a 900,000 - ton/year EG device in Singapore has postponed its restart [4][6]. 利空解读 (Negative Factors) - An 830,000 - ton/year MEG new device in South China plans to start trial production with ethylene feedstock in early November, and part of the production will be available in the market. The original planned production time was the first quarter of 2026, and now it is advanced, which will bring a small additional supply increment in December [7]. Market Data - **Price Data**: On November 19, 2025, the prices of various polyester - related products and their changes compared with the previous day and the previous week are provided, including Brent crude oil, PX, PTA, EG, etc. For example, the EG01 contract price was 3903 yuan/ton, down 4 yuan from the previous day and up 12 yuan from the previous week [8]. - **Spread Data**: The spreads between different contracts and the changes in basis, month - to - month spreads, and processing fees are also presented. For example, the TA1 - 5 month spread was - 62 yuan/ton, with a daily change of - 6 yuan and a weekly change of 0 yuan [8][9]. - **Warehouse Receipt Data**: The number of warehouse receipts for PTA, MEG, and PX and their changes are given. For example, the number of PTA warehouse receipts was 111,696, unchanged from the previous day and up 13,246 from the previous week [9].

Report Industry Investment Rating No relevant content provided. Core View - The decline in spot prices has led to a weakening of the futures market. The log port inventory as of November 7th was 2.93 million cubic meters (+5), with a daily average outbound volume of 66,300 cubic meters per day (+3,500), maintaining resilience. The prices of certain log specifications in the spot market have decreased this week. The impact of the opening of US log imports on the futures market is relatively small. The lg2601 contract showed a weekly increase of 1.28% and remained in a low - volatility oscillation state this week, while the lg2603 contract rose 0.38% with a position of only 4,000 lots. There is an opportunity to short the 01 - 03 spread in the long - term [5][6]. Summary by Related Catalogs Log Price Forecast - The monthly price range forecast for logs is 780 - 830, with a current 20 - day rolling volatility of 16.28% and a 3 - year historical percentile of 67.4% [1]. Hedging Strategies - **Inventory Management**: When log imports are high and inventory is at a high level, and there are concerns about price declines, enterprises with long spot exposure can short log futures (lg2601) to lock in profits and cover production costs, with a hedging ratio of 25% and an advisable entry range of 810 - 820 [1]. - **Procurement Management**: When the regular procurement inventory is low and procurement is based on order situations, enterprises with short spot exposure can buy log futures (lg2601) at present to lock in procurement costs in advance, with a hedging ratio of 25% and an advisable entry range of 740 - 750 [1]. Market Conditions - **Futures Market**: lg2601 closed at 775.5 (-11) with a position of 17,000 lots, and lg2603 closed at 791.5 (-5) [4]. - **Spot Market**: The spot price decreased this week. For example, the market price of 5.9 - meter medium A logs in Lanshan area was 770 (-10) [4]. - **Valuation**: The warehouse receipt cost is approximately 811 yuan per cubic meter in the Yangtze River Delta and 803 yuan per cubic meter in Shandong [4]. - **Inventory**: As of November 7th, the national inventory was 2.93 million cubic meters (+5) [4]. Core Contradictions - The decline in spot prices has led to a weakening of the futures market. The log port inventory is increasing, and the daily average outbound volume remains resilient. The prices of certain log specifications in the spot market have decreased, and the impact of the opening of US log imports on the futures market is relatively small [5]. Strategies - Short at high prices. - Pay attention to the 01 - 03 reverse spread opportunity in the long - term. - Short the lg2601 - C - 800 position at high prices [7]. Factors Affecting the Market - **Positive Factors**: The inventory is relatively low [7]. - **Negative Factors**: The emergence of domestic deliverable log products; the reduced willingness of buyers to accept deliverable products at non - mainstream delivery warehouses; the decline in spot prices and weak market demand [9].

Core Viewpoint - The company, Tibet Summit Resources (600338.SH), is actively engaged in futures hedging to manage price volatility risks associated with its main products, which include lead concentrate (containing silver), zinc concentrate, and a small amount of copper concentrate [2]. Group 1: Business Operations - The company and its subsidiaries conduct futures hedging not for arbitrage or speculation, but to hedge against price fluctuations of self-produced commodities [2]. - The company will closely monitor the price differences between futures and spot markets for non-ferrous metals and will cautiously select hedging tools to effectively manage price volatility risks [2]. Group 2: Market Context - Recent trends indicate that the prices of non-ferrous metals such as lead, zinc, silver, and copper have been rising [2].