Report Industry Investment Rating - Not provided Core Viewpoints - The marginal improvement in the aromatics industry chain is observed, but there are expectations of weak demand during the off - season [1] Summary by Relevant Catalogs Fundamental Analysis Pure Benzene - Production profits: Caprolactam -350 yuan/ton (-40), phenol - acetone -927 yuan/ton (+0), aniline 789 yuan/ton (+178), adipic acid -1018 yuan/ton (-11) [1] - Operating rates: Caprolactam 69.20% (-5.37%), phenol 76.00% (-3.50%), aniline 61.35% (-14.59%), adipic acid 59.60% (+0.40%) [1] - Due to tariff issues, South Korea's exports of pure benzene to China increased, with concentrated arrivals of imports, leading to significant port inventory pressure. However, subsequent inventory accumulation will gradually slow down, and currently, there is a pattern of strong supply and weak demand [1] Styrene - From December 12th to 18th, China's total styrene factory output was 34.68 tons, a 2.38% increase from the previous period, and the factory capacity utilization rate was 69.13%, a 1.02% increase month - on - month [2] - The consumption of EPS, PS, and ABS downstream of styrene was 26.18 tons, a 3.89% decrease month - on - month [2] - Styrene factory inventory was 17.10 tons, a 4.23% decrease from the previous week. As of December 22nd, the inventory in East China's ports was 13.93 tons, a 3.41% increase from the previous week, and the inventory in South China's ports was 1.1 tons, a 26.67% decrease from the previous week [2] - As of December 17th, the non - integrated profit of styrene was -203 yuan/ton, and the integrated profit was 421.08 yuan/ton [2] - There were many styrene overhauls in the fourth quarter, and port inventory was depleted. However, according to industry past rules, there is a high possibility of seasonal inventory accumulation from January to March [2] Macroeconomic Analysis - The National Development and Reform Commission and the Ministry of Commerce issued the "Catalogue of Industries Encouraging Foreign Investment (2025 Edition)", guiding foreign investment in advanced manufacturing and modern services, which will come into effect on February 1st, 2026 [3] - In November, the country's total electricity consumption was 835.6 billion kWh, a year - on - year increase of 6.2% [3] Futures and Spot Market Analysis Pure Benzene - Pure benzene continued its overall volatile trend during the day, with significant upward pressure. Due to inventory pressure from concentrated imports, it still showed a pattern of strong supply and weak demand. It should be treated with a volatile mindset, and attention should be paid to the support near the previous low [4] Styrene - Styrene continued its rebound trend, closing up 1.67%. It initially broke through the 60 - day moving average on the daily line, but considering the seasonal inventory accumulation period in the first quarter of next year, the upward space is currently limited. Continue to observe the pressure of the 20 - day moving average on the weekly line, and the industry can pay attention to hedging opportunities [4]

Group 1 - The State-owned Assets Supervision and Administration Commission (SASAC) emphasizes the need for central enterprises to enhance the quality and market value management of listed companies by 2026, focusing on effective investment and management improvements [1] - The People's Bank of China and eight other departments have jointly issued 21 key measures to support the high-quality development of the Western Land-Sea New Corridor, aiming to enhance financial services and cooperation [2] - Beijing's new policy allows non-Beijing households to purchase properties with reduced social security or tax payment requirements, aiming to support housing demand for families with multiple children [3] Group 2 - In November, the total electricity consumption in China reached 8,356 billion kilowatt-hours, marking a year-on-year increase of 6.2%, with significant growth in various sectors including the service industry [4] - Tesla's new car registrations in Europe fell by 11.8% year-on-year in November, with a cumulative decline of 28% for the first eleven months of the year [6] - The Netherlands' GDP data for Q3 2025 was revised upward, showing a quarter-on-quarter growth of 0.5% and a year-on-year growth of 1.8%, indicating a recovery trend in the economy [6]