Report Summary 1. Investment Rating - No investment rating provided in the report. 2. Core View - The improvement of PP fundamentals is limited despite the boost from macro - sentiment. The overall fundamental support at the end of the year is weak, and the improvement range of PP fundamentals is expected to be limited. Attention should be paid to the marginal changes of PDH devices under deep - loss PDH profits [2]. 3. Summary by Directory 3.1 Fundamental Tracking - **Futures Data**: The closing price of PP2605 was 6486, with a daily increase of 0.98%. The trading volume was 595337, and the open interest decreased by 1191. The 05 - contract basis was - 206 (compared to - 203 the previous day), and the 05 - 09 contract spread was - 54 (compared to - 36 the previous day) [1]. - **Spot Price**: The spot prices in North China, East China, and South China were 6250 yuan/ton, 6280 yuan/ton, and 6330 yuan/ton respectively, showing an increase compared to the previous day [1]. 3.2 Spot News - The futures market was strong, some hedging resources could not be unwound, the sales pressure on the spot side was moderate, and traders were generally inclined to hold prices. The demand at the end of the year was difficult to provide continuous elasticity, the sustainability of buying was questionable, and the warehouse receipts remained at a high level. The PP US - dollar market price remained stable, overseas suppliers' enthusiasm for offering to China was low, downstream buyers continued to make rigid - demand purchases, and the trading situation was difficult to improve [1]. 3.3 Market Condition Analysis - **Cost**: The prices of crude oil and propane were strong. The chemical allocation in the market was differentiated, and the hedging logic of aromatics - olefins was continuously strengthened [2]. - **Supply**: There was no new production before the 2605 contract, and the game between existing supply and demand intensified [2]. - **Demand**: The follow - up of new orders from downstream was weakening, and downstream factories were still cautious in purchasing, resulting in weak demand [2].

Report Industry Investment Rating - Not provided Core View of the Report - The cost of crude oil and propane is strong, the chemical allocation in the market is differentiated, and the hedging logic of aromatics - olefins is continuously strengthened. There is no new production before the 2605 contract on the supply side, and the game between stock supply and demand intensifies. The follow - up of new orders from downstream is weakening, and downstream factories are still cautious in purchasing, so the demand is weak. Overall, the fundamental support at the end of the year is limited. Although the PDH profit at the cost end has reached a new low, the upstream has locked raw materials and made some pre - sales in the early stage, so the willingness to reduce production is not strong. It is expected that PP will continue to be weak. Under the deep loss of PDH profit, focus on the marginal changes of PDH devices [2] Summary by Relevant Catalogs Fundamental Tracking - **LLDPE Futures Data**: The closing price of PP2605 yesterday was 6423, with a daily increase of 1.47%. The trading volume was 476,543, and the open interest changed by 13,147. The 05 - contract basis was - 203 (compared with - 160 the day before), and the 05 - 09 contract spread was - 36 (compared with - 25 the day before) [1] - **Important Spot Prices**: The spot prices in North China, East China, and South China yesterday were 6190 yuan/ton, 6220 yuan/ton, and 6300 yuan/ton respectively, showing an increase compared with the day before [1] Spot News - The market is relatively strong. Some arbitrage resources cannot be unwound. The sales pressure on the spot side is moderate, and traders generally have a strong willingness to hold prices. The prices of some tight - supply grades have increased slightly. The end - of - year demand is difficult to provide continuous elasticity, the sustainability of buying is questionable, and the warehouse receipts remain at a high level. The PP US dollar market price remains stable. Overseas suppliers are not very enthusiastic about offering prices to China, downstream customers continue to purchase on a just - in - time basis, and the trading volume is difficult to improve [1] Market Condition Analysis - Cost side: Crude oil and propane prices are strong. The chemical allocation in the market is differentiated, and the aromatics - olefins hedging logic is continuously strengthened. Supply side: There is no new production before the 2605 contract, and the game between stock supply and demand intensifies. Demand side: The follow - up of new orders from downstream is weakening, and downstream factories are still cautious in purchasing, so the demand is weak. Overall, at the end of the year, the fundamental support is limited. Although the PDH profit at the cost end has reached a new low, the upstream has locked raw materials and made some pre - sales in the early stage, so the willingness to reduce production is not strong. It is expected that PP will continue to be weak. Under the deep loss of PDH profit, focus on the marginal changes of PDH devices [2] Trend Intensity - The PP trend intensity is 0 [2]

Group 1: Report Industry Investment Rating - No information provided Group 2: Core View of the Report - The overall fundamentals of PP provide limited support at the end of the year. With the PDH profit at a new low, but the upstream having locked in raw materials and made some pre - sales earlier, the willingness to cut production is not strong. It is expected that PP will continue to be weak. Attention should be paid to the marginal changes of PDH devices under the deep - loss PDH profit [2] Group 3: Summary by Relevant Catalogs 1. Fundamental Tracking - **LLDPE Futures Data**: The closing price of PP2605 was 6330, with a daily decline of 0.28%. The trading volume was 374,453, and the position changed by 535 [1] - **LLDPE Basis and Spread Data**: The 05 - contract basis was - 160 (compared to - 208 the previous day), and the 05 - 09 contract spread was - 25 (compared to - 20 the previous day) [1] - **LLDPE Spot Price Data**: The spot prices in North China, East China, and South China were 6180 yuan/ton, 6170 yuan/ton, and 6260 yuan/ton respectively, showing increases compared to the previous day [1] 2. Spot News - Before the festival, the domestic PP market had partial small increases. After the festival, due to the intensification of geopolitical conflicts in South America during the festival, which boosted oil price expectations, the futures fluctuated on the first day after the festival, and the spot prices rose. However, the end - of - year demand is difficult to provide continuous elasticity, the sustainability of buying is questionable, and the warehouse receipts remain at a high level. The PP US - dollar market price remained stable, with overseas suppliers having low enthusiasm for offering to China, and downstream buyers continuing to make rigid - need purchases, resulting in difficult improvement in trading [1] 3. Market Condition Analysis - **Cost Side**: Crude oil and propane prices are strong. The chemical configuration in the market is differentiated, and the hedging logic between aromatics and olefins is continuously strengthened [2] - **Supply Side**: There is no new production before the 2605 contract, and the game between existing supply and demand intensifies [2] - **Demand Side**: The follow - up of new orders from downstream industries weakens, and downstream factories are still cautious in purchasing, resulting in weak demand [2] 4. Trend Intensity - The PP trend intensity is 0 [2]

Report Industry Investment Rating - Not provided Core View of the Report - The PP is expected to remain weak due to limited overall fundamental support at the end of the year, with the cost - end PDH profit at a new low, but the upstream's weak willingness to cut production. Attention should be paid to the marginal changes of PDH units under deep PDH profit losses [2] Summary by Relevant Catalogs Fundamental Tracking - **LLDPE Futures Data**: The closing price of PP2605 was 6266, with a daily decline of 0.19%. The trading volume was 405723, and the open interest decreased by 3751 [1] - **LLDPE Basis and Spread Data**: The basis of the 05 contract was -146, compared with -158 the previous day. The 05 - 09 contract spread was -19, compared with -22 the previous day [1] - **LLDPE Spot Price Data**: The spot prices in North China, East China, and South China were 6050 yuan/ton, 6120 yuan/ton, and 6210 yuan/ton respectively. The prices in North China increased by 30 yuan/ton compared with the previous day, while the price in South China decreased by 10 yuan/ton, and the price in East China remained unchanged [1] Spot News - The futures market fluctuated. Near the end of the month, the on - site spot resources were limited, and some offers of holders rose slightly. Downstream buyers were highly cautious and had a low willingness to purchase the resources after the price increase. The market trading atmosphere was weaker than the previous day. The warehouse receipts remained at a high level, and new downstream orders were insufficient. Some PDH units plan to shut down in January, but the scale is not large yet. The end - of - year demand lacks flexibility, and the industry's willingness to hold goods is limited in the continuous decline, putting pressure on the basis. The prices in the PP US dollar market partially declined. Overseas suppliers were not enthusiastic about offering to China, and downstream buyers continued to make purchases based on rigid demand, with little improvement in trading [1] Market Condition Analysis - **Cost Side**: Crude oil is expected to continue to fluctuate narrowly, providing limited support to the PP cost side. The chemical allocation in the market is differentiated, and the hedging logic between aromatics and olefins is continuously strengthened [2] - **Supply Side**: There will be no new production before the 2605 contract, and the game between existing supply and demand intensifies [2] - **Demand Side**: New downstream orders are weakening, and downstream factories are still cautious in purchasing, resulting in weak demand [2] Trend Intensity - The trend intensity of PP is 0 [3]

Report Industry Investment Rating - No relevant information provided Report's Core View - The cost of crude oil is expected to fluctuate narrowly, providing limited support to the PP cost side. The chemical configuration in the market is differentiated, and the hedging logic of aromatics - olefins is continuously strengthened. With no new production before the 2605 contract on the supply side, the game of existing supply and demand intensifies. On the demand side, new orders from downstream industries weaken, and downstream factories' procurement remains cautious, leading to weak demand. Overall, the fundamentals at the end of the year provide limited support. Although the PDH profit is at a new low, upstream companies have locked in raw materials and made some pre - sales earlier, so the willingness to reduce production is not strong. It is expected that PP will continue to be weak. With the deep loss of PDH profit, attention should be paid to the marginal changes of PDH devices [2] Summary by Relevant Catalogs Fundamental Tracking - **Futures Data**: The closing price of PP2605 yesterday was 6278, with a daily increase of 1.95%. The trading volume was 566,939, and the position decreased by 18,588. The 05 - contract basis was - 158 (compared to - 138 the previous day), and the 05 - 09 contract spread was - 22 (compared to - 38 the previous day) [1] - **Spot Price**: The spot prices in North China, East China, and South China were 6020 yuan/ton, 6120 yuan/ton, and 6220 yuan/ton respectively yesterday, showing an increase compared to the previous day [1] Spot News - The futures market rebounded with fluctuations, but it had limited impact on the spot market. At the end of the month, traders focused on fulfilling their planned volumes and actively sold goods, with limited increase in quotes. Downstream industries were still worried about the future market and purchased cautiously. The daily trading volume in the market was lower than that of PE. Warehouse receipts remained at a high level, and new orders from downstream industries were insufficient. Some PDH devices are planned to stop production in January, but the scale is not large. The end - of - year demand lacks flexibility, and the industry's willingness to hold goods is limited in the continuous decline, putting pressure on the basis. The prices in the PP US - dollar market partially declined. Overseas suppliers were not enthusiastic about offering prices to China, and downstream industries continued to make rigid - demand purchases, with no improvement in trading [1] Market Condition Analysis - The cost of crude oil is expected to fluctuate narrowly, providing limited support to the PP cost side. The chemical configuration in the market is differentiated, and the hedging logic of aromatics - olefins is continuously strengthened. With no new production before the 2605 contract on the supply side, the game of existing supply and demand intensifies. On the demand side, new orders from downstream industries weaken, and downstream factories' procurement remains cautious, leading to weak demand. Overall, the fundamentals at the end of the year provide limited support. Although the PDH profit is at a new low, upstream companies have locked in raw materials and made some pre - sales earlier, so the willingness to reduce production is not strong. It is expected that PP will continue to be weak. With the deep loss of PDH profit, attention should be paid to the marginal changes of PDH devices [2] Trend Intensity - The trend intensity of PP is 0 [3]