Core Points - The Chinese Ministry of Finance announced adjustments to tariffs on U.S. goods, effective November 10, signaling a "dual cooling" in the ongoing trade war that has lasted seven years [1][4] - The adjustments include the complete cessation of 15% tariffs on U.S. agricultural products like chicken, wheat, and corn, and a 10% tariff on soybeans and pork, while maintaining a 10% baseline tariff on other goods [4] - The timing of the tariff adjustments aligns precisely with U.S. actions, indicating a strategic and technical demonstration of compliance [4] Group 1: Tariff Adjustments - The Chinese announcement covers approximately $380 billion in bilateral trade, potentially reducing U.S. companies' tariff costs by 19% and decreasing compliance costs for Chinese exports by 1.27 billion yuan [4] - The U.S. has framed its tariff pauses as a "Christmas gift," with a 1% decrease in tariffs saving about $780 million in import costs during the holiday season [8] - The U.S. Trade Representative's office is preparing a "compliance assessment" that could trigger additional tariffs if performance falls below 80% [8] Group 2: Diplomatic Engagements - Chinese Vice Minister of Commerce Li Chenggang highlighted that fluctuations in U.S.-China agricultural trade stem from unilateral U.S. tariff measures, aiming to leverage internal U.S. political dynamics [6] - China has committed to purchasing 12 million tons of U.S. soybeans this crop season, with a total of 75 million tons over three years, although specific figures were not discussed in the meeting [6] - The meeting with the U.S. agricultural delegation was seen as an opportunity for China to emphasize the complementary nature of U.S.-China agricultural trade [6] Group 3: Market Reactions - The announcement of synchronized tariff reductions led to significant market movements, with the offshore yuan rising 1.2% against the dollar and the Hang Seng Tech Index increasing by 4.7% [8] - The International Monetary Fund raised its global growth forecast for 2025 by 0.2 percentage points, citing the positive impact of improved trade relations [8] - Supply chain companies remain cautious due to previous instances of abrupt policy changes from the U.S. that disrupted market optimism [8] Group 4: Ongoing Tensions - Despite the tariff adjustments, key issues remain unresolved, including the retention of a 10% baseline tariff by the U.S. and China's refusal to comply with real-time data sharing requests [11] - The U.S. has added 23 Chinese companies to its export control "entity list," indicating ongoing tensions despite the tariff agreement [11] - The dual approach of signing agreements while imposing restrictions reflects deeper contradictions in U.S. policy towards China [11] Group 5: Broader Implications - The trade adjustments are viewed as a strategic maneuver within the broader context of reshaping global trade dynamics [12] - The ongoing negotiations and adjustments signal a temporary pause in hostilities rather than a definitive resolution to trade conflicts [12]

Report Industry Investment Rating No relevant content provided. Core Viewpoints - The overall macro sentiment has been boosted by the positive signals from the China-US high-level talks on October 25th, but the pure benzene and styrene markets remain weak. The pure benzene market has a loose supply-demand situation, and its short-term price drive is still weak, while the macro benefits from the China-US talks may provide some support. The styrene market maintains a weak shock, with supply pressure and cautious replenishment sentiment on the demand side. The improvement in the macro situation may slow down the market's downward pressure [2][3]. Summary by Relevant Catalogs 1. Daily Market Summary Fundamentals - **Price**: On October 27th, the styrene main contract closed down 0.12% at 6,531 yuan/ton, with a basis of -56 (-62 yuan/ton); the pure benzene main contract closed down 0.05% at 5,569 yuan/ton. The spot price of East China pure benzene was 5,485 yuan/ton (-60 yuan/ton) [2]. - **Cost**: On October 27th, the Brent crude oil main contract closed at $61.5 per barrel (-$0.3 per barrel), and the WTI crude oil main contract closed at $65.9 per barrel (-$0.1 per barrel) [2]. - **Inventory**: The styrene port inventory was 203,000 tons (+6,000 tons), a month-on-month inventory accumulation of 3.1%. The pure benzene port inventory was 99,000 tons (+9,000 tons), a month-on-month inventory accumulation of 10% [2]. - **Supply**: The styrene operating rate and supply decreased slightly month-on-month. The current weekly styrene output was 327,000 tons (-12,000 tons), and the factory capacity utilization rate was 69.3% (-2.6%) [2]. - **Demand**: The overall demand of the downstream 3S operating rate recovered. The EPS capacity utilization rate was 62.0% (-0.5%), the ABS capacity utilization rate was 72.8% (-0.3%), and the PS capacity utilization rate was 53.8% (+0%) [2]. Views - **Pure Benzene**: The crude oil market continues to have a loose supply-demand pattern, with OPEC+ increasing production in November. The global oil consumption enters the off-season, and the US tariff policy tightens, keeping oil prices oscillating at a low level. After the ceasefire agreement in Gaza, the geopolitical risk has significantly eased. The supply of pure benzene is still high due to limited domestic device overhauls and new capacity release. The terminal demand is weak, and most downstream products are still in the loss range, with insufficient purchasing willingness. Overall, the supply and demand of pure benzene are relatively loose, and the short-term price drive is still weak, but the macro benefits from the China-US talks are expected to provide some support [2]. - **Styrene**: The styrene market generally maintains a weak shock. Although some devices are overhauled due to profit inversion and high inventory, new devices such as Jilin Petrochemical are about to be put into production, and the supply pressure still exists. On the demand side, the downstream devices such as PS, EPS, and ABS have gradually recovered after the festival, but the terminal orders are limited, and the replenishment sentiment is cautious. The weakening of crude oil and pure benzene costs further weakens the price support. The styrene supply and demand pattern is still loose, and the short-term price center may continue the weak shock, but the improvement in the macro aspect is expected to slow down the market's downward pressure [3]. 2. Industrial Chain Data Monitoring - **Price**: The styrene futures main contract decreased by 0.12%, and the spot price increased by 0.06%. The pure benzene futures main contract decreased by 0.05%, and the East China spot price decreased by 1.08%. The Brent crude oil decreased by 0.47%, and the WTI crude oil decreased by 0.08% [5]. - **Output and Inventory**: The domestic styrene output decreased by 3.66% to 327,000 tons, and the pure benzene output decreased by 2.72% to 426,000 tons. The styrene port inventory in Jiangsu increased by 3.05% to 203,000 tons, and the factory inventory increased by 1.47% to 196,000 tons. The national pure benzene port inventory increased by 10.00% to 99,000 tons [6]. - **Operating Rate**: The capacity utilization rate of styrene decreased by 2.63% to 69.3%, and the capacity utilization rate of downstream products such as EPS and ABS decreased slightly [7]. 3. Industry News - The threat of a 100% tariff on China by Trump has been cancelled, China is expected to resume "substantial" purchases of US soybeans, and Beijing will postpone the implementation of rare earth export controls by one year and re - examine the plan [8]. - The US inflation data in September was lower than expected, enhancing the prospect of the Fed's interest rate cut [8]. - The Fed will hold an interest rate meeting early on October 30th [8]. 4. Industrial Chain Data Charts - The report provides charts of pure benzene price, styrene price, styrene - pure benzene spread, etc., as well as charts related to inventory and capacity utilization rate of styrene, pure benzene, and their downstream products [9][13][16]