Vitamin Sector - The vitamin sector is expected to benefit from price increases in 2024 and Q1 2025, with revenue projected to grow by 22.5% and net profit by 162.6% year-on-year in 2024 [1] - In Q1 2025, revenue and net profit are anticipated to continue their upward trend, with increases of 10.8% and 110.3% year-on-year, respectively [1] - The demand for feed-grade vitamins remains rigid, and certain concentrated supply structures are expected to support price increases for products like Vitamin E, D3, and folic acid [1] Fine Chemicals Sector - The fine chemicals sector is projected to outperform the basic chemicals sector in 2024 and Q1 2025, with a decline of only 4.2% in 2024 compared to a 5.1% drop in basic chemicals [2] - By the end of Q1 2025, the fine chemicals index is expected to rebound to 6905.55 points, reflecting an 8.5% increase year-to-date, surpassing basic chemicals by 2.4 percentage points [2] - The fine chemicals industry benefits from relatively inelastic downstream demand and high production barriers, making it more resilient during downturns and more elastic during recoveries [2] Amino Acids Sector - The amino acids sector is forecasted to see revenue growth of 8.9% and net profit growth of 55.0% in 2024, driven by recovering demand and lower raw material costs [3] - In Q1 2025, the sector is expected to continue benefiting from lower corn prices and increased export demand, with revenue and net profit projected to rise by 9.0% and 74.6% year-on-year, respectively [3] - Notably, methionine prices are anticipated to rise due to low channel inventory and market expectations, presenting potential opportunities for price increases [3] Pesticides Sector - The pesticides sector is showing signs of a cyclical rebound from 2024 to Q1 2025, despite an overall oversupply in 2024 leading to a revenue decline of 2.3% and a net profit drop of 73% [4] - In Q1 2025, certain pesticide products are expected to experience rapid price increases due to temporary supply-demand imbalances, resulting in a revenue increase of 4.5% and a net profit increase of 57.2% year-on-year [4] - Future price increases may be driven by strong demand for specific crops and supply constraints due to uncontrollable factors [4] Sweeteners Sector - The sweeteners sector is projected to show resilience in revenue with a 2.1% increase in 2024, although net profit is expected to decline by 32.5% due to price drops in core products [5] - In Q1 2025, revenue is anticipated to grow by 7.1% and net profit by 81.1%, benefiting from price increases initiated in late 2024 and ongoing demand for functional sugars [5] - The sector may see further price increases for sucralose and potential growth opportunities following the approval of natural sweetener allulose in the domestic market [5]

Core Viewpoint - The chemical sector experienced a collective rise, driven primarily by substantial progress in US-China trade negotiations, which exceeded market expectations [2] Group 1: Chemical Sector Performance - The chemical sector saw significant increases, with styrene leading the way with a limit-up of 5.99%, followed by butadiene rubber at 5.85%, PX at 2.82%, and PP at only 1.29% [1] - Styrene's price increase was supported by a favorable supply-demand situation, with port inventory decreasing to 56,700 tons, which is 11.82% lower than the same period last year [2] - Butadiene rubber's price surge was influenced by macroeconomic improvements and supply disruptions from a factory's equipment failure, leading to a spike in raw material prices [3] Group 2: Supply and Demand Dynamics - PX faced production cuts due to compressed margins, while downstream PTA processing fees improved, delaying some maintenance schedules and leading to increased production [3] - Polypropylene's performance was hindered by significant inventory accumulation and weakened supply-demand dynamics, limiting its rebound potential [4] Group 3: Future Outlook for the Chemical Sector - Despite the short-term strength in the chemical sector, there are concerns about the sustainability of these gains due to potential OPEC+ production increases and limited fundamental support for most chemical products [5] - Styrene's price increase may face challenges from high downstream inventory levels and weak supply-demand conditions for pure benzene, limiting its rebound potential [5] - The easing of US-China tariff issues may lead to a temporary inventory replenishment in the polyester sector, but seasonal demand weaknesses and production pressures remain [5]