Core Insights - The launch of the container shipping index (European route) futures has provided a powerful tool for managing price risks in the shipping and trade export sectors, especially amid high volatility in freight rates [1][2] Group 1: Market Performance - As of August 15, 2025, the container shipping index (European route) futures have recorded a total of 483 trading days, with a cumulative trading volume of 61.0491 million contracts and a cumulative trading value of 5.28 trillion yuan [1] - The average daily trading volume stands at 126,400 contracts, with an average daily trading value of 10.942 billion yuan, and the end-of-period open interest is 79,500 contracts [1] Group 2: Industry Participation - The participation of shipping industry chain enterprises in the futures market has gradually increased, with stakeholders including shippers and logistics companies actively engaging in hedging activities [2][3] - Freight forwarding companies are particularly active in using the futures for risk management, as they face significant uncertainties in pricing for long-term contracts [3] Group 3: Challenges in Participation - Shipping industry clients face several challenges in participating in the futures market, including a lack of understanding of financial instruments and the complexities of price fluctuations driven by both supply-demand fundamentals and macroeconomic events [4][5] - There is a need for futures companies to provide more training and educational resources to help shipping enterprises build a solid understanding of hedging strategies [4] Group 4: Future Outlook - The futures market for the container shipping index (European route) is expected to see a diversification of hedging participants and the development of new hedging models, including non-traditional over-the-counter hedging options [6] - Increased participation from shipowners and the potential for shipping companies to engage in futures for price risk management is anticipated as awareness of the futures market grows [6][7]

Core Viewpoint - The listing of pure benzene futures and options on July 8 provides enhanced risk management tools for the upstream and downstream of the industry chain, which is crucial given China's position as the largest producer and consumer of pure benzene globally [1][2]. Industry Overview - China accounts for 39% of global pure benzene production capacity and 43% of apparent consumption in 2024, with East China being the largest production and consumption area [1]. - The production capacity concentration in China is moderate, with the top three companies holding nearly 40% of the market share, where Sinopec alone accounts for 17.6% [2]. Pricing and Sales Mechanisms - Different scale refineries have varying sales methods for pure benzene, with large refineries primarily using contracts and pricing based on Sinopec's East China price [2]. - Trade enterprises often reference prices from sources like Argus and Platts for their pure benzene procurement, with imports mainly from South Korea and Southeast Asia [3]. Market Conditions and Outlook - The pure benzene market is currently experiencing a downturn due to insufficient downstream demand, but a supply-demand increase is expected in the second half of the year with over 1 million tons of new capacity planned [7]. - Inventory levels for pure benzene and styrene have risen to higher levels this year, with expectations of a de-inventory trend in August, followed by a potential accumulation in September and October [8]. Production and Operational Insights - The production processes for pure benzene are diverse, with catalytic reforming and ethylene cracking being the most significant methods [5]. - Maintenance cycles for pure benzene facilities typically occur every three years, with minor repairs having a limited impact on the market [6]. Futures Market Participation - Companies are increasingly engaging in futures trading for hedging purposes, with a notable number of enterprises participating in the pure benzene futures market [11]. - The introduction of pure benzene futures and options has enriched the risk management tools available to industry players, enhancing market liquidity [12].

Core Points - The company establishes a management system for futures hedging to regulate its operations and mitigate risks associated with price fluctuations in raw materials and finished products [1][2][3] - The primary goal of the futures hedging business is to control risks related to the rising costs of major commodities and to protect profit margins during the order-to-revenue confirmation period [2][3] - The company emphasizes that futures trading should only be for hedging purposes and prohibits speculative trading [1][2] Group 1: General Principles - The company is limited to conducting hedging transactions in domestic futures exchanges and must not engage in off-market trading [1][2] - The hedging positions must align with the company's operational timelines and the types and scales of the underlying assets [2][3] - The company must maintain sufficient self-owned funds to match the margin requirements for hedging and cannot use raised funds for this purpose [1][2][3] Group 2: Organizational Structure - A dedicated hedging working group is established, comprising decision-making, risk control, and operational teams to oversee the hedging activities [3][4] - The decision-making team is responsible for determining whether to operate new futures contracts based on sales orders and production plans [4] - The risk control team evaluates the reasonableness of existing positions and assesses market liquidity risks [4] Group 3: Decision Authorization - The company must prepare feasibility analysis reports for hedging activities and submit them for board approval [5][6] - If the trading frequency and time constraints make it difficult to follow the approval process for each transaction, the company can estimate the scope and limits of futures trading for the next 12 months [5][6] - The hedging working group is authorized to execute daily operations within the approved limits [5][6] Group 4: Operational Execution - The company must adhere to strict operational procedures for futures hedging, ensuring that all departments comply with trading instructions [22][23] - The trading strategy must be developed based on market analysis and forecasts, with regular updates to the decision-making team [24][25] - After trading, the company must either close the futures positions or proceed with physical delivery as per the trading instructions [25][26] Group 5: Risk Management - A robust risk management system is established to prevent, identify, and mitigate risks associated with futures trading [29][30] - The risk control team is responsible for timely risk assessments, including funding risks and price fluctuation risks [31][32] - Internal reporting and risk handling procedures are in place to address significant market fluctuations and compliance issues [33][34] Group 6: Other Management Matters - The company must disclose any significant losses or gains related to futures trading that exceed specified thresholds [41][42] - All trading documents and records must be maintained for at least 10 years, ensuring compliance with regulatory requirements [43][44] - The management system will be enforced strictly, with penalties for violations [45][46]

Core Viewpoint - The company has established a comprehensive management system for futures hedging to mitigate price risks associated with raw material procurement, ensuring the protection of the company's and shareholders' interests [1][2]. Group 1: General Principles - The hedging activities are strictly limited to the company's operational needs and must not involve speculation or third-party transactions [1][2]. - Futures trading must occur only in the exchange market, and the hedging quantity should not exceed the actual procurement amount [1][2]. - The company is required to maintain a hedging time frame that aligns with the pricing period of the underlying contracts [1][2]. Group 2: Organizational Structure and Responsibilities - The board of directors authorizes the general manager to establish a futures hedging working group, which includes key executives responsible for implementing the hedging strategy [2][3]. - The working group is tasked with reporting the previous year's hedging activities and submitting the current year's hedging plan to the board [2][3]. - The supply chain center is responsible for executing the hedging operations and managing the procurement of raw materials [3][4]. Group 3: Trading Process - The marketing management center is responsible for archiving relevant project documents and preparing raw material demand forms for the hedging working group [3][4]. - The hedging working group determines the futures buy quantity based on project requirements and market conditions [4]. - The supply chain center must submit funding requests for hedging operations, which are then processed by the finance department [4][5]. Group 4: Risk Management - The company employs various risk control measures to prevent and mitigate risks associated with futures hedging [5][6]. - Regular audits and checks are conducted to ensure compliance with risk management policies and procedures [5][6]. - The hedging operations must align with the physical contracts in terms of quantity and timing [5][6]. Group 5: Reporting and Documentation - Hedging operators are required to submit monthly reports detailing the status of hedging activities, including new positions and overall performance [6][8]. - All documentation related to hedging activities must be preserved for at least ten years, ensuring compliance with regulatory requirements [8][9]. Group 6: Confidentiality and Compliance - All personnel involved in futures trading must adhere to strict confidentiality protocols regarding hedging information [10][11]. - The company conducts annual evaluations of its futures brokerage firms, allowing for replacements if they do not meet performance standards [13].

Core Viewpoint - Daon Group has established itself as a leading enterprise in the new materials sector in China, particularly in rubber, plastics, and chemical new materials, with a sales revenue of approximately 47.9 billion yuan in 2024 and a brand value exceeding 16 billion yuan [1] Group 1: Company Overview - Daon Group was founded in 1991 and is located in Longkou Economic Development Zone, Yantai City, Shandong Province [1] - The company has become a key player in the plastic industry, with its production and sales being a high-growth business segment [1] Group 2: Risk Management Strategies - The company has developed practical strategies to address price volatility in raw materials, including "cost locking," "pricing gauge," and "inventory slimming" [3] - "Cost locking" involves using futures contracts to hedge against price fluctuations in raw materials or products [3] - "Pricing gauge" allows the company to set reasonable procurement and sales prices based on futures market trends [3] - "Inventory slimming" helps manage stock levels and reduce capital occupation through various methods, including pre-sale pricing and futures hedging [3] Group 3: Response to Market Conditions - Daon Chemical, a subsidiary, has been responsible for the company's futures operations, managing risks associated with fluctuating raw material prices [2] - The company faced challenges in determining reasonable inventory levels due to the volatility of commodity prices, which can impact production costs and profit margins [2] Group 4: Case Study During the Pandemic - In 2020, Daon Group played a significant role in the supply chain for medical mask materials, particularly PP, during the pandemic [4] - The company implemented a pricing model that balanced the interests of upstream and downstream partners, ensuring stable supply and pricing [4][5] Group 5: Futures Market Participation - Daon Chemical has actively engaged in the futures market, providing risk management solutions to its partners through options trading [6][7] - In October 2021, the company executed multiple options trades to stabilize prices for upstream and downstream partners, enhancing their competitive positions [7][8] - The company has established a stable pricing model based on futures prices, integrating futures tools into its operational framework to mitigate price volatility risks [8]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - The alumina market is expected to remain in surplus in the second half of the year, with prices likely to fluctuate and adjust in the short term, supported by the full cost of high - cost regions (3000 - 3150). The trading logic may shift to cost - based pricing [2]. - The electrolytic aluminum market will maintain high - level oscillations in the short term, with a price range of 20300 - 21000. There is upward momentum in the medium term as the peak season approaches and there are expectations of a Fed rate cut [4]. - The cast aluminum alloy market has strong cost support from scrap aluminum, but demand is weakening. The futures price generally follows the trend of Shanghai aluminum, and arbitrage operations can be considered when the price difference widens [5]. 3. Summary by Relevant Catalogs 3.1 Price Forecast - Alumina: The latest price is 3240 yuan/ton, with a monthly price forecast range of 3000 - 3500 yuan/ton, a current 20 - day rolling volatility of 40.74%, and a 3 - year historical percentile of 90.74% [1]. - Electrolytic aluminum: The latest price is 20715 yuan/ton, with a monthly price forecast range of 20000 - 21000 yuan/ton, a current 20 - day rolling volatility of 9.86%, and a 3 - year historical percentile of 41.99% [1]. - Aluminum alloy: The latest price is 20140 yuan/ton, with a monthly price forecast range of 19500 - 20300 yuan/ton, a current 20 - day rolling volatility of 7.83%, and a 3 - year historical percentile of 37.50% [1]. 3.2 Risk Management Strategies - **Alumina** - Inventory management: When product inventory is high and worried about price drops, sell 75% of the alumina main futures contract at 3500 yuan/ton; options strategy is not suitable for now [1]. - Raw material management: When raw material inventory is low and worried about price increases, buy 50% of the alumina main futures contract at 3100 yuan/ton; options strategy is not suitable for now [1]. - **Electrolytic aluminum** - Inventory management: When product inventory is high and worried about price drops, sell 50% of the Shanghai aluminum main futures contract at 20700 yuan/ton; options strategy is not suitable for now [1]. - Raw material management: When raw material inventory is low and worried about price increases, buy 50% of the Shanghai aluminum main futures contract at 20500 yuan/ton; options strategy is not suitable for now [1]. - **Aluminum alloy** - Inventory management: When product inventory is high and worried about price drops, sell 50% of the aluminum alloy main futures contract at 20200 yuan/ton; options strategy is not suitable for now [1]. - Raw material management: When raw material inventory is low and worried about price increases, buy 50% of the aluminum alloy main futures contract at 19800 yuan/ton; options strategy is not suitable for now [1]. 3.3 Market Analysis of Each Product - **Alumina** - Core contradiction: The fundamental situation is weak, with high domestic operating capacity, incoming imported alumina, and expected new production capacity release in the second half of the year. The market trading logic may shift to cost - based pricing, and prices will fluctuate in the short term [2]. - Bullish factors: The Guinean government has revoked some mining licenses [2]. - Bearish factors: High operating capacity, rigid demand without increment, and increasing inventory [2][9]. - **Electrolytic aluminum** - Core contradiction: The fundamental situation has little change, with inventory accumulation not over yet. The price has limited downside space in the short term and may rise in the medium term [4]. - Bullish factors: Expectations of a Fed rate cut in September and approaching peak season [4]. - Bearish factors: Decreasing terminal factory orders, slightly lower downstream operating rates, and increasing social inventory [10]. - **Cast aluminum alloy** - Core contradiction: Scrap aluminum prices are high, providing cost support, but demand is weakening. The futures price follows Shanghai aluminum, and arbitrage operations can be considered [5]. - Bullish factors: High scrap aluminum prices and potential reduction in scrap aluminum imports [5]. - Bearish factors: Weakening demand expectations and serious over - capacity in the industry [7]. 3.4 Price and Spread Data - **Price data**: The latest prices, daily changes, and daily change rates of Shanghai aluminum, alumina, and aluminum alloy futures contracts, as well as LME aluminum prices, are provided [8][11]. - **Spread data**: The latest prices, daily changes, and daily change rates of spreads between different contracts of Shanghai aluminum, alumina, and aluminum alloy, as well as the ratio of aluminum main contract to alumina main contract, are provided [15]. 3.5 Import Profit and Loss - The latest import profit and loss data for aluminum, alumina, and aluminum alloy, along with their daily changes and daily change rates, are provided [24]. 3.6 Warehouse Receipt and Inventory Data - **Warehouse receipt data**: The latest warehouse receipt data for Shanghai aluminum, LME aluminum, and alumina, including regional breakdowns, are provided [30]. - **Inventory data**: Seasonal inventory data for aluminum ingots in three regions, Shanghai Futures Exchange aluminum warehouse receipts, LME aluminum inventory, and Shanghai Futures Exchange alumina warehouse receipts are provided [30][33][35].

Report Overview - Report Title: Nickel & Stainless Steel: Intraday Correction of Previous Gains, Risk Management Daily Report on August 14 - Research Team: Nanhua New Energy & Precious Metals Research Team - Analysts: Xia Yingying, Guan Chenghan [1] 1. Price Range Forecast 1.1. Nickel - Price Range: 118,000 - 126,000 yuan/ton - Current Volatility (20-day Rolling): 15.17% - Current Volatility Historical Percentile: 3.2% [2] 1.2. Stainless Steel - Price Range: 12,500 - 13,100 yuan/ton - Current Volatility (20-day Rolling): 9.27% - Current Volatility Historical Percentile: 1.8% [2] 2. Risk Management Strategies 2.1. Nickel 2.1.1. Inventory Management - Strategy 1: Short sell Shanghai nickel futures based on inventory level to lock in profits and hedge against spot price decline; sell NI main contract with a 60% hedging ratio and a strategy level of 2 - Strategy 2: Sell call options; sell over-the-counter/on-exchange options with a 50% hedging ratio and a strategy level of 2 [2] 2.1.2. Procurement Management - Strategy 1: Buy Shanghai nickel forward contracts according to production plan to lock in production costs in advance; buy far-month NI contracts and sell put options - Strategy 2: Buy out-of-the-money call options; buy over-the-counter/on-exchange options [2] 2.2. Stainless Steel 2.2.1. Inventory Management - Strategy 1: Short sell stainless steel futures based on inventory level to lock in profits and hedge against spot price decline; sell SS main contract with a 60% hedging ratio and a strategy level of 2 - Strategy 2: Sell call options; sell over-the-counter/on-exchange options with a 50% hedging ratio and a strategy level of 2 [3] 2.2.2. Procurement Management - Strategy 1: Buy stainless steel forward contracts according to production plan to lock in production costs in advance; buy far-month SS contracts and sell put options - Strategy 2: Buy out-of-the-money call options; buy over-the-counter/on-exchange options [3] 3. Core Contradictions - Intraday, Shanghai nickel showed a weak and volatile trend with no obvious changes in fundamentals. Nickel ore arrival inventory remained at a high level, and the bottom support was loosening, with a clear situation of strong supply and weak demand. Nickel iron remained firm intraday, with strong price support willingness from the supply side, but the actual acceptance of steel mills remained to be considered. The new energy chain salt plants had some support recently, with increased demand from some downstream precursor plants and relatively stable transactions. Stainless steel also corrected its previous gains intraday, and attention should be paid to whether it can stabilize above 13,000 yuan/ton. In the spot market, the previous follow-up increase in transactions was poor, and there was a certain downward adjustment at present. The expectation of strong supply and weak demand in August continued. Macroscopically, the subsequent trend of the US dollar index can be monitored [4] 4. Market Analysis 4.1. Bullish Factors - Indonesia's APNI plans to revise the HPM formula and include elements such as iron and cobalt - Indonesia shortens the nickel ore quota license period from three years to one year - The construction of the Yarlung Zangbo River Hydropower Station may increase the demand for stainless steel [6] 4.2. Bearish Factors - Stainless steel enters the traditional off-season of demand, and inventory reduction is slow - Pure nickel inventory is high - Seasonal increase in nickel ore inventory, with loosening bottom support - Sino-US tariff disturbances still exist - South Korea plans to impose anti-dumping duties on China's hot-rolled products [6] 5. Market Data 5.1. Nickel | Indicator | Latest Value | Change from Previous Period | Change Rate | Unit | | --- | --- | --- | --- | --- | | Shanghai Nickel Main Contract | 121,200 | -1,140 | -1% | yuan/ton | | Shanghai Nickel Continuous Contract 1 | 121,200 | -1,140 | -0.93% | yuan/ton | | Shanghai Nickel Continuous Contract 2 | 121,340 | -1,130 | -0.92% | yuan/ton | | Shanghai Nickel Continuous Contract 3 | 121,530 | -1,140 | -0.92% | yuan/ton | | LME Nickel 3M | 15,240 | -120 | -0.93% | US dollars/ton | | Trading Volume | 102,257 | 12,747 | 14.24% | lots | | Open Interest | 66,437 | -4,493 | -6.33% | lots | | Warehouse Receipts | 20,720 | 142 | 0.69% | tons | | Main Contract Basis | -660 | 620 | -48.4% | yuan/ton | [6] 5.2. Stainless Steel | Indicator | Latest Value | Change from Previous Period | Change Rate | Unit | | --- | --- | --- | --- | --- | | Stainless Steel Main Contract | 13,025 | -105 | -1% | yuan/ton | | Stainless Steel Continuous Contract 1 | 12,945 | -100 | -0.77% | yuan/ton | | Stainless Steel Continuous Contract 2 | 13,025 | -105 | -0.80% | yuan/ton | | Stainless Steel Continuous Contract 3 | 13,090 | -95 | -0.72% | yuan/ton | | Trading Volume | 160,562 | 238 | 0.15% | lots | | Open Interest | 135,237 | -8,989 | -6.23% | lots | | Warehouse Receipts | 103,521 | 3 | 0.00% | tons | | Main Contract Basis | 340 | 70 | 25.93% | yuan/ton | [7] 6. Inventory Data | Inventory Type | Latest Value (tons) | Change from Previous Period (tons) | | --- | --- | --- | | Domestic Social Inventory | 40,572 | 1,086 | | LME Nickel Inventory | 211,140 | 42 | | Stainless Steel Social Inventory | 954 | -12.2 | | Nickel Pig Iron Inventory | 33,415 | 182 | [8]

Core Viewpoint - The company, Shida Shenghua, announced the approval of a proposal to conduct futures hedging business, which will require a maximum margin amount of up to 24 million RMB or equivalent in other foreign currencies [1] Group 1 - The company held the 19th meeting of the 8th Board of Directors and the 11th meeting of the 8th Supervisory Board on August 13, 2025 [1] - The maximum contract value held on any trading day will not exceed 100 million RMB or equivalent in other foreign currencies [1] - The proposal is subject to approval at the company's shareholders' meeting [1]

Core Viewpoint - The company aims to mitigate operational risks associated with raw material price fluctuations by utilizing futures hedging strategies, specifically focusing on lithium carbonate futures, to ensure stable and continuous business performance [1][2][3] Transaction Overview - The purpose of the transaction is to reduce operational risks from raw material price volatility and maintain stable business performance through futures hedging [2][3] - The maximum margin amount for the hedging activities is set at 24 million RMB or equivalent in other currencies, with a maximum contract value of 100 million RMB or equivalent on any trading day [2][3] - The funding for these activities will come from the company's own and self-raised funds [3] Approval Process - The proposal for the futures hedging business has been approved by the company's board and supervisory committee and will be submitted for shareholder meeting approval [2][3] Risk Analysis and Control Measures - The company acknowledges that while the hedging activities are not speculative, they still carry market, price fluctuation, liquidity, internal control, and technical risks [2][4] - Risk control measures include close monitoring of market conditions, establishing clear decision-making authority, approval processes, and effective supervision to mitigate internal control risks [4][5] Accounting Principles - The company will adhere to relevant accounting standards for financial instruments and hedge accounting as stipulated by the Ministry of Finance [5]

Core Viewpoint - Hainan Mining Co., Ltd. has successfully expanded its business from iron ore mining to include oil, natural gas, and renewable energy, leveraging futures tools for risk management and operational stability in a volatile market [1][2][3]. Group 1: Financial Performance - In 2024, Hainan Mining achieved a net profit of 706 million yuan, a year-on-year increase of 12.97%, and a non-recurring net profit of 680 million yuan, up 23.72% [2]. - The iron ore business remains the cornerstone, with a production of 4.91 million tons and a sales volume of 2.38 million tons, with long-term and strategic customers accounting for a nearly 20 percentage point increase in sales [2][3]. Group 2: Use of Futures Tools - Hainan Mining has effectively utilized futures tools for risk management, which has become an indispensable part of its operations, allowing for stable procurement and sales [2][4]. - The company has engaged in futures trading since the launch of iron ore futures in 2013, enhancing its resilience against price fluctuations [3][6]. Group 3: Risk Management Strategies - The company employs a strategy of adjusting inventory based on market conditions, accelerating sales when prices are high and replenishing stock when prices are low, while also implementing hedging strategies during periods of increased risk [5][6]. - Hainan Mining has also initiated foreign exchange hedging to mitigate risks associated with its growing iron ore import business [6]. Group 4: Governance and Compliance - Hainan Mining has established a robust risk control framework to support its futures trading activities, including a management system and a collaborative operational model [7][8]. - The company emphasizes a non-speculative approach to futures trading, focusing on stable profitability tailored to its specific business model and risk exposure [8].