Group 1: Report Industry Investment Rating There is no information about the report industry investment rating in the provided content. Group 2: Report's Core View - Affected by concerns over stable upstream raw material supply, some domestic refineries have taken preventive measures to reduce their load, leading to a decline in the supply of domestic raw materials. The operating rates of pure benzene and styrene have both decreased. This week, the operating rate of pure benzene was 77.48%, a week-on-week decrease of 2.32%, and the operating load of styrene was 71.62%, a decrease of 3.57% from the previous period. With the Strait of Hormuz being affected, the import and export of styrene from the Middle East to Eurasia will be restricted, and Iranian styrene plants are in a temporary shutdown state, which will drive the domestic styrene export market. If the Strait of Hormuz fails to operate normally for a long time, it will affect the supply of refineries, leading to a passive reduction in refinery load and further affecting the supply of aromatic products. As the downstream of styrene enters the peak season, the load is expected to rise. Subsequently, continuous attention should be paid to the impact of Middle East logistics transportation on supply and the risk of a decline should be guarded against [6]. - The overall driving force of the aromatic hydrocarbon sector is upward due to the preventive load reduction of refineries. Subsequently, continuous attention should be paid to the impact of Middle East logistics transportation on supply and the risk of a decline should be guarded against. The trading strategies include: unilateral trading (the overall driving force of the aromatic hydrocarbon sector is upward, but the risk of a decline should be guarded against), arbitrage (positive arbitrage), and options (wait and see) [6]. Group 3: Summary According to Relevant Catalogs Chapter 1: Comprehensive Analysis and Trading Strategies 1.1 Raw Material Shortage Leads to a Decrease in Pure Benzene Supply - This week, the operating load of petroleum benzene was 77.48%, a decrease of 3.32 percentage points from last week. Zhejiang Petrochemical shut down a 3.8 million - ton reforming unit, Gulei Petrochemical started maintenance on March 9, and Daxie's PX unit stopped on the 9th, resulting in a slight decrease in load [11]. - On March 11, 2026, the inventory of pure benzene in East China port trade was 296,000 tons, a decrease of 13,000 tons from March 4, a month - on - month decrease of 4.21% and a year - on - year increase of 98.66% [11]. - Some devices in Japan and South Korea announced force majeure, and the market expected a supply shortage, causing the price of pure benzene to rise. Sinopec's East China, South China, Central China, and North China branches along the Yangtze River and coastal areas set the listed price of pure benzene at 8,400 yuan/ton, which has been officially implemented since March 12 [11]. 1.2 More Maintenance of Downstream Styrene and Stable Demand from Other Downstreams - There are many styrene device maintenance plans. For example, Tangshan Xuyang's 300,000 - ton/year device failed and stopped on the evening of January 20, 2026, and is planned to restart in late March; Gulei Petrochemical's 600,000 - ton/year device is planned to stop for maintenance from March 7 to April 28, etc. [15]. - This week, the operating load of styrene was 71.62%, a decrease of 3.57 percentage points from last week. The domestic production reduction this week mainly came from the planned shutdown and maintenance of Gulei Petrochemical's 600,000 - ton/year device, the load reduction of Zhonghua Quanzhou's 450,000 - ton/year device due to raw material problems, and the load reduction of Tianjin Dagu and Tianjin Bohua during the meeting as required by management. The industry profit of styrene has gradually recovered, and the processing profit is at a high level in the past five years. Styrene producers' willingness to produce has increased, and they are locking in processing differentials and actively shipping [17]. Chapter 2: Core Logic Analysis 2.1 Recent Device Dynamics and Maintenance Plans of Styrene - Multiple styrene devices have maintenance plans. For example, Tangshan Xuyang's 300,000 - ton/year device failed and stopped on January 20, 2026, and is planned to restart in late March; Gulei Petrochemical's 600,000 - ton/year device is planned to stop for maintenance from March 7 to April 28; Hengli Petrochemical's 720,000 - ton/year device is planned to stop for maintenance around March 15 for about 10 days, etc. [15]. 2.2 Load Decline and Profit Expansion - This week, the operating load of styrene was 71.62%, a decrease of 3.57 percentage points from last week. The domestic production reduction mainly came from the planned shutdown and maintenance of Gulei Petrochemical's 600,000 - ton/year device, the load reduction of Zhonghua Quanzhou's 450,000 - ton/year device due to raw material problems, and the load reduction of Tianjin Dagu and Tianjin Bohua during the meeting as required by management. The industry profit of styrene has gradually recovered, and the processing profit is at a high level in the past five years. Styrene producers' willingness to produce has increased, and they are locking in processing differentials and actively shipping [17]. 2.3 More Overseas Long - Shutdown Devices - The profits of global styrene have been compressed to varying degrees. Not only are there long - shutdown devices in China, but the number of overseas shutdown devices is also gradually increasing. The total production capacity of overseas shutdown devices is 3.842 million tons, accounting for 16% of the total production capacity outside the Chinese mainland. As the number of shutdowns in the Americas and Europe increases, attention should be paid to whether the styrene gap in Europe and surrounding areas will increase in the future [20]. 2.4 Shutdown and Maintenance of Styrene Devices Outside the Chinese Mainland in 2026 - In 2026, styrene maintenance outside the Chinese mainland is mostly concentrated in the first half of the year, with the maintenance volume increasing in the first quarter and reaching a peak in April, and then decreasing [23]. 2.5 Styrene Export and Inventory - According to the announcement of the General Administration of Customs of the People's Republic of China, the import and export data for January 2026 will be postponed to March. It is estimated that the styrene export volume in January may be between 40,000 and 50,000 tons. According to multiple market channels, China's styrene transactions in February were around 40,000 tons. The export transactions for loading in January and February have increased. After the Spring Festival, the export demand has remained strong, with significant transactions in exports to Europe. Coupled with the subsequent loading of previously concluded transactions, it is expected that exports will increase significantly from March to June. The port inventory of styrene has accumulated seasonally after the Spring Festival. Attention should be paid to the implementation of subsequent device maintenance, and it is expected to re - enter the destocking cycle [26]. 2.6 Styrene Downstream Operating Rate and Profit - The inventory index of EPS enterprises is 45.63, a decrease of 5.01 from last week. The predicted value of the PS enterprise inventory index is 78.15, a decrease of 2.35 from the previous final value. The inventory index of ABS enterprises is 75.26, a decrease of 2.74 from last week (78.00) [38]. Chapter 3: Weekly Data Tracking 3.1 Pure Benzene - **Price**: The price trends of pure benzene in East China spot and related downstream products are presented in the report, including EPS, PS, and ABS spot prices [44][45]. - **Profit**: The production profit of pure benzene, the production profit of styrene by ethylbenzene dehydrogenation, and the profits of downstream products such as phenol, adipic acid, caprolactam, and aniline are presented [52][54]. - **Operating Rate**: The operating rates of pure benzene and hydro - benzene are presented, as well as the operating rates of downstream products such as styrene, caprolactam, phenol, aniline, and adipic acid [58][64]. - **Inventory**: The inventory of pure benzene in ports is presented [60]. 3.2 Styrene - **Price**: The spot price of styrene in East China is presented [70]. - **Profit**: The production profit of styrene by ethylbenzene dehydrogenation and the profits of downstream products such as EPS, PS, and ABS are presented [73]. - **Operating Rate**: The operating rates of styrene, PS, ABS, EPS, and phenol are presented [78]. - **Inventory**: The port inventories of styrene, including in East China and South China, are presented [81].

Industry Investment Rating - Pure Benzene: Sideways [2] - Styrene: Sideways [2] Core Viewpoints - In the fourth quarter, the pure benzene and styrene industry chain may need time to recover. Pure benzene faces dual supply pressures of increased import volume and new capacity ramping up, with downstream profit issues posing potential risks of reduced production. Styrene has a higher potential supply growth rate, and potential stockpiling problems may become a core contradiction. The industry needs to maintain low - profit states for a longer time to reduce supply and achieve a balance [4]. Summary by Directory 1. The biggest change in the industry chain in the third quarter was the rapid decline in styrene profits - In the third quarter, styrene prices weakened, dropping from around 7,600 yuan/ton at the end of June to about 6,900 yuan/ton recently. Pure benzene prices fluctuated less, remaining in the range of 5,800 - 6,000 yuan/ton. The trading focus shifted from compressing pure benzene valuation in the first half of the year to styrene profit decline in the third quarter [13]. - The root cause is the phased strength - weakness transformation of the pure benzene and styrene pattern. High styrene production profits in the first half of the year led to increased supply, resulting in inventory accumulation and a narrowing of the styrene - pure benzene spread [14]. 2. Pure benzene: New capacity launches are not over, and the expected import volume is rising again - From January to August, the total supply of pure benzene was 21.05 million tons, a year - on - year increase of 10.9%. Domestic production was 17.37 million tons (a 6.0% increase), and imports were 3.68 million tons (a 43.7% increase). High supply growth led to the failure of seasonal destocking in the first half of the year [18]. - In the fourth quarter, the import volume of pure benzene may rise again. South Korea's maintenance losses will decrease, and European pure benzene may flow to East Asia. New capacity, such as from Henan Fengli and Hunan Petrochemical, will be released, and planned maintenance may decrease. The monthly average output of petroleum benzene is expected to be around 2.01 million tons [19][22][23]. - Downstream industries are restricted by profit issues, and potential production cuts are a concern. New downstream capacity may not be smoothly implemented due to low profits. For example, caprolactam profits are at a five - year low, and styrene non - integrated device cash - flow profits are negative [26]. 3. Styrene: Pay attention to potential stockpiling contradictions 3.1. Demand resilience cannot match the supply increase, and the recent styrene profit center has significantly declined - The styrene - pure benzene spread has dropped from 2,000 yuan/ton in the middle of the year to around 1,000 yuan/ton, and non - integrated styrene profits have reached the lowest level this year [32]. - Styrene demand is better than expected, with 1 - 8 month production of PS, ABS, and EPS increasing by 10.3%, 24.3%, and 6.1% respectively year - on - year. However, high production profits in the first half of the year led to increased supply, with the average monthly output from July to August reaching 1.6 million tons, and the total output from January to August increasing by 16.6% year - on - year [33]. 3.2. There are concerns about weakening demand in the fourth quarter. Pay attention to whether the divergence between 3S and end - users will converge - In the third quarter, there was a divergence between the 3S开工率 and end - user demand growth. 3S production increased, but white - goods production decreased. In September, the total production of air conditioners, refrigerators, and washing machines decreased by 7.2% year - on - year [41]. - In the fourth quarter, the end - user demand for household appliances is expected to continue to decline, with the total production of three major white - goods in October decreasing by 9.9% year - on - year. Factors such as tariffs and the marginal decline of national subsidy policies affect demand. If end - user demand is weak, 3S enterprises may cut production, weakening styrene demand [45]. 3.3. The core issue for styrene in the future is how to solve potential stockpiling problems - If the 1.2 million tons/year capacity of Jilin Petrochemical and Guangxi Petrochemical is put into production in the fourth quarter, styrene stockpiling may exceed 250,000 tons, potentially leading to stockpiling at the East China main port [57]. - To solve this problem, styrene non - integrated profits need to stay below the break - even point for a long time to force more supply cuts. The industry's operating center may drop to around 70%. Next year, with less new capacity and stable 3S demand growth, the industry may return to a balanced state [57]. 4. Investment suggestions - In the fourth quarter, the pure benzene and styrene industry chain may not improve significantly. Pure benzene will face supply pressures, and styrene may have more prominent potential contradictions. The industry needs to maintain low - profit states to reduce supply, and the industry operating center may drop to around 70% [64]. - The strategy is to short the EB - BZ spread on rallies. The price range of pure benzene is expected to be 5,600 - 6,250 yuan/ton, and that of styrene is 6,500 - 7,350 yuan/ton [65].