Report Industry Investment Rating - The report suggests a unilateral strategy of oscillating upward, a positive spread arbitrage for UR05 - 09 when the price difference is low, and no cross - variety strategy [3] Core Viewpoints - The urea futures market is oscillating upward due to sentiment, with good spot trading and low pressure on pre - holiday orders. Attention should be paid to the policy - guided price ceiling for spot prices. In January, supply increased as some gas - based and technologically - upgraded enterprises resumed production. On the demand side, agricultural demand for winter and spring fertilizers continued, and compound fertilizer production and melamine production also increased their demand. Factory inventories decreased slightly, and port inventories remained stable. International urea prices rose due to the situation in Iran, and India is expected to issue another tender. The export quota in China has no new news, and attention should be paid to export dynamics, the pace of off - season reserves release, and the sustainability of spot purchasing sentiment [2] Summary by Directory 1. Urea Basis Structure - On January 28, 2026, the closing price of the urea main contract was 1799 yuan/ton (+9). The ex - factory price of small - sized urea in Henan was 1760 yuan/ton (unchanged), in Shandong was 1760 yuan/ton (unchanged), and in Jiangsu was 1780 yuan/ton (+10). The basis in Shandong was - 39 yuan/ton (-9), in Henan was - 39 yuan/ton (+1), and in Jiangsu was - 19 yuan/ton (+1) [1] 2. Urea Production - As of January 28, 2026, the capacity utilization rate of enterprises was 86.39% (0.08%), and the total inventory of sample enterprises was 94.49 million tons (-0.11 million tons), while the port sample inventory was 13.40 million tons (unchanged) [1] 3. Urea Production Profit and Operating Rate - The urea production profit was 195 yuan/ton (unchanged), and the export profit was 951 yuan/ton (-14) [1] 4. Urea Foreign Market Price and Export Profit - Affected by the situation in Iran, international urea prices rose, and India is expected to issue another tender. The current export quota in China has no new news [2] 5. Urea Downstream Operating Rate and Orders - As of January 28, 2026, the capacity utilization rate of compound fertilizers was 42.96% (+2.88%), the capacity utilization rate of melamine was 63.65% (+1.47%), and the number of pre - received order days for urea enterprises was 6.59 days (+0.71) [1] 6. Urea Inventory and Warehouse Receipts - The overall urea factory inventory decreased slightly this week, remaining basically flat, and the port inventory remained unchanged [2]

Report Summary 1) Report Industry Investment Rating No information provided. 2) Core View of the Report The asphalt market has certain support with low inventory. The fundamentals of asphalt are performing well. Supply growth is limited as some refineries stop producing asphalt or switch to producing residual oil, and the overall operating rate may decline again. On the demand side, it is gradually improving seasonally, although rainfall restricts project construction in some areas and limits the growth rate. The inventory accumulation rate is lower than the seasonal average, and the downstream has a good acceptance of low prices [1]. 3) Summary by Relevant Catalogs Market Analysis - On May 22, the closing price of the main asphalt futures contract BU2507 in the afternoon session was 3,539 yuan/ton, up 16 yuan/ton or 0.45% from the previous settlement price. The open interest was 187,690 lots, a net increase of 14,254 lots, and the trading volume was 233,597 lots, a net increase of 44,922 lots [1]. - The spot settlement prices of heavy - traffic asphalt from Zhuochuang Information are as follows: 3,700 - 4,086 yuan/ton in Northeast China, 3,450 - 3,800 yuan/ton in Shandong, 3,400 - 3,430 yuan/ton in South China, and 3,500 - 3,590 yuan/ton in East China. The spot price of asphalt in North China rose slightly yesterday, while prices in other regions remained stable [1]. Strategy - Unilateral: Range - bound. - Inter - delivery spread: Go long on the BU2507 - 2509 spread at low levels (positive spread trading). - Inter - commodity spread: None. - Spot - futures: None. - Options: None [2]

Report Summary 1) Report Industry Investment Rating No information provided. 2) Core Viewpoints - The asphalt market continues to face a situation of weak supply and demand. The current inventory is at a low level, and the recent inventory accumulation rate is lower than the seasonal average, resulting in limited short - term market pressure. However, with the improvement of some refineries' profits, the asphalt plant operating rate and production have marginally increased. Meanwhile, rainfall in South China in late May will affect the improvement of terminal demand, so there is also certain resistance above the asphalt market, and the industry's acceptance of high - priced resources is still limited [1]. - The strategy for asphalt investment is as follows: the unilateral trend is expected to be volatile; for the inter - period strategy, the previous long position of BU2506 - 2509 (positive spread position) can be taken profit at high prices; there are no strategies for cross - variety, spot - futures, and options [2]. 3) Summary by Related Catalogs Market Analysis - On May 19, the closing price of the main BU2506 contract of asphalt futures in the afternoon session was 3,502 yuan/ton, up 26 yuan/ton or 0.75% from the previous settlement price. The open interest was 73,925 lots, down 1,051 lots from the previous day, and the trading volume was 140,886 lots, up 21,991 lots from the previous day [1]. - The spot settlement prices of heavy - traffic asphalt from Zhuochuang Information are as follows: 3,700 - 4,086 yuan/ton in Northeast China, 3,450 - 3,600 yuan/ton in Shandong, 3,400 - 3,430 yuan/ton in South China, and 3,500 - 3,570 yuan/ton in East China. The spot prices of asphalt in North China and Shandong decreased yesterday, while those in other regions remained generally stable [1]. Strategy - Unilateral: Volatile [2]. - Inter - period: Take profit on the previous long position of BU2506 - 2509 (positive spread position) at high prices [2]. - Cross - variety: None [2]. - Spot - futures: None [2]. - Options: None [2].