Group 1: Report Industry Investment Rating - Not provided Group 2: Core Viewpoints - The conflict between Israel and Iran continues to ferment, and the crude oil price is strong, which boosts the unilateral prices of FU and LU. The market may face repeated fluctuations due to the unclear situation [1]. - The contango structure of high - sulfur fuel oil has weakened recently, but there is still some support after market adjustment as the power - generation demand in the Middle East and Egypt is expected to increase with the approaching summer. There is a potential upward risk in the Asian high - sulfur fuel oil market if Iranian refineries and ports are severely damaged [1]. - The short - term supply pressure of low - sulfur fuel oil is limited, and the downstream bunker fuel demand is good. However, after the end of the refinery maintenance season in China, the domestic production of low - sulfur fuel oil is expected to rise, and it lacks a continuous upward driver without geopolitical disturbances [2]. - The strategies for high - sulfur and low - sulfur fuel oils are both to be oscillating and strengthening, and attention should be paid to the development of the Israel - Iran conflict situation [3]. Group 3: Summary by Related Content Market Analysis - **High - sulfur fuel oil**: The main contract of SHFE fuel oil futures closed up 0.18% at 3385 yuan/ton. The contango structure has weakened, indicating relatively abundant spot supply. The weak profit of downstream refineries restricts procurement demand. With the approaching summer, power - generation demand in the Middle East and Egypt will increase. If Iranian refineries and ports are damaged, the supply of high - sulfur fuel oil may decrease, and the raw material source of Chinese refineries may tighten [1]. - **Low - sulfur fuel oil**: The main contract of INE low - sulfur fuel oil futures closed up 1.31% at 4032 yuan/ton. The short - term supply pressure is limited, and the domestic production in May is at a low level. The bunker fuel sales in Singapore in May increased significantly, showing good downstream demand. After the end of the refinery maintenance season in China, the domestic production is expected to recover [2]. Strategy - **High - sulfur**: Oscillating and strengthening, pay attention to the development of the Israel - Iran conflict situation [3]. - **Low - sulfur**: Oscillating and strengthening, pay attention to the development of the Israel - Iran conflict situation [3]. - **Cross - variety**: No strategy [3]. - **Cross - period**: No strategy [3]. - **Spot - futures**: No strategy [3]. - **Options**: No strategy [3].

Core Viewpoint - The successful completion of the first domestic high-sulfur fuel oil futures delivery in China marks a significant step in breaking the reliance on imported fuel and enhancing the domestic supply chain for ship fuel [1][3]. Group 1: Industry Significance - The introduction of domestically produced high-sulfur fuel oil for futures contracts is expected to stabilize the supply environment for quality ship fuel, which is crucial for the international shipping industry [3][4]. - The rising oil prices have made fuel oil costs the largest expense for shipping companies, making the use of heavy oil a necessary choice for cost savings and increased profitability [3][4]. - The establishment of a fuel oil futures market in China will provide a transparent pricing mechanism and risk management tools for domestic producers, traders, and end-users [4][5]. Group 2: Company Overview - Bohui Co., as the sole domestic producer of high-sulfur fuel oil in the private sector, is actively exploring and attempting to meet market demands in collaboration with oil traders and logistics companies [6][7]. - The company has a production capacity of nearly one million tons annually and is positioned in a key chemical park, benefiting from advantageous logistics and a complete industrial chain [6][7]. - Bohui Co. aims to adapt its business philosophy to focus on specialization and precision, aligning with international standards to enhance its competitiveness in the global market [7]. Group 3: Future Outlook - The company is optimistic about future business prospects, with several clients already expressing interest in collaboration, indicating a positive market response to its new product offerings [7].