Core Viewpoint - Shandong Province's Ministry of Industry and Information Technology has issued a notice outlining the 2025 industrial energy conservation inspection tasks and carbon reduction diagnostic services, targeting multiple petrochemical and chemical enterprises [1][2] Group 1: Energy Conservation Inspection Tasks - A total of 26 refining enterprises, 13 synthetic ammonia enterprises, 3 chemical fiber and blended fabric enterprises, 2 tire enterprises, 1 chemical enterprise, 1 fertilizer enterprise, 1 titanium dioxide enterprise, and 1 coal-to-methanol enterprise are included in the energy conservation inspection task list [1] - The notice emphasizes the need for energy conservation and carbon reduction diagnostics to identify weaknesses in production processes, key product equipment, energy structure, and energy management systems [1] Group 2: Carbon Reduction Diagnostic Services - The notice includes 1 petrochemical enterprise, 5 nitrogen fertilizer enterprises, 1 rubber and plastic products enterprise, 1 chlor-alkali enterprise, and 3 chemical enterprises in the carbon reduction diagnostic service task list [1] - The document highlights the importance of energy conservation and carbon reduction services in guiding enterprises to implement energy-saving technology transformations and promote equipment upgrades [2]

Core Insights - The Zhejiang Petrochemical 40 million tons/year integrated refining and chemical project, located on Yushan Island, Zhoushan, has been fully completed and put into operation, marking it as the largest single integrated refining and chemical project globally [1] - The project utilizes a new industrial AI-driven enterprise intelligent operation architecture called "1+2+N," with a control system I/O point count reaching 770,000, setting an industry record [1] - The project demonstrates significant improvements in product quality and operational efficiency, achieving a 30.17% reduction in product quality fluctuations and a 20.35% decrease in grade switching time, along with a yield increase of over 1.045% [1] Project Overview - The total planned area for the project is 41 square kilometers, making it a significant development in China's refining and chemical industry [1] - The project is a joint construction effort led by Rongsheng Group and showcases advanced technologies in process industries, particularly in industrial AI and control systems [1] Technological Advancements - The control system's stability, service response capability, and adaptability for local delivery have been highly recognized, particularly in industrial AI control and instrumentation [1] - The project has achieved a 45% reduction in product quality fluctuations and a 32.7% decrease in grade switching time in its high-density polyethylene unit, highlighting the practical value of advanced technologies in the industry [1]

Investment Rating - The report maintains a "Recommended" rating for the chemical industry [1] Core Viewpoints - The chemical industry is expected to benefit from supply-side reforms and a reduction in low-price competition, leading to improved performance for leading companies [7][31] - The report highlights four major investment opportunities: low-cost expansion, improving industry conditions, new materials, and high dividend yields [8][9][31] Summary by Sections Core Target Tracking - The report tracks key companies in the chemical sector, emphasizing their performance and market conditions [32] Market Observation - The report notes that the chemical industry is entering a replenishment cycle due to fiscal policy support in China and the US, alongside a reduction in European production capacity [31] Data Tracking - The report provides various price trends for key chemical products, including MDI, lithium carbonate, and others, indicating market dynamics and supply-demand conditions [10][11][12][14][19] Weekly Focus on Individual Stocks - The report identifies specific stocks to watch, including companies like Wanhua Chemical, Hengli Petrochemical, and others, with a focus on their growth potential and market positioning [32] Investment Recommendations - The report suggests a focus on companies with strong fundamentals and growth potential, particularly in sectors like polyurethane, low-carbon olefins, and phosphate chemicals [7][8][9][31]

Investment Rating - The report does not explicitly state an investment rating for the industry or specific companies [1]. Core Insights - The cost side supports the price increase of long filament yarns, with domestic and foreign refining project price differentials showing positive trends [2]. - The polyester sector shows varied performance with POY, FDY, and DTY average prices increasing, while profits remain under pressure for FDY and DTY [2]. - The refining sector indicates a decline in domestic gasoline, diesel, and aviation fuel prices, reflecting broader market trends [2]. - The chemical sector shows a decrease in PX average price, but the price differential with crude oil has improved [2]. Summary by Sections 1. Refining Projects Price Differential - Domestic refining project price differential is 2548 CNY/ton, up by 186 CNY/ton (8% increase) week-on-week [2]. - Foreign refining project price differential is 1103 CNY/ton, up by 79 CNY/ton (8% increase) week-on-week [2]. 2. Polyester Sector - Average prices for POY, FDY, and DTY are 6725 CNY/ton, 7011 CNY/ton, and 7932 CNY/ton respectively, with week-on-week increases of 4 CNY, 25 CNY, and 25 CNY [2]. - Weekly average profits for POY, FDY, and DTY are 18 CNY/ton, -58 CNY/ton, and -44 CNY/ton respectively, with significant week-on-week profit increases for POY and FDY [2]. - Inventory levels for POY, FDY, and DTY are 19.7 days, 25.7 days, and 30.0 days respectively, with slight increases week-on-week [2]. 3. Refining Sector - Domestic gasoline, diesel, and aviation fuel prices have decreased, reflecting a broader trend in the market [2]. - The average price of gasoline in the US has also seen a decline, indicating a similar trend in the international market [2]. 4. Chemical Sector - PX average price is 838.7 USD/ton, down by 16.1 USD/ton week-on-week, but the price differential with crude oil has improved to 344.7 USD/ton, up by 9.3 USD/ton [2]. - PX operating rate remains stable at 82.4% [2].

中化新网讯 7月30日，大连石化公司科技创新中心揭牌成立。该中心将聚焦炼油、芳烃组分高效利用、 树脂及新材料、合成橡胶、新能源及"双碳"等重大专业方向，开展关键技术攻关与成果转化，为大连石 化加速向炼化一体化企业转型升级提供核心驱动力。 该中心将为大连石化炼油化工等主营业务参与市场竞争提供技术支撑，打造引领发展前瞻规划的高端智 库。对内，该中心将作为人才强企战略、素质提升工程的重要平台载体，构建企业各级专家、博士等高 学历人才领衔，一线技术技能人才、青年骨干联动的人才矩阵，实现科技创新和人才培育相融互促。对 外，该中心与知名高校、科研院所、相关企业共同打造创新联合体，通过产学研用深度融合，加快推进 关键技术攻关。 作为东北地区重要的炼化基地，大连石化正全力推进绿色低碳、数智开放、创新高效的战略转型，为建 设世界一流炼化一体化企业奠定坚实基础。"当前，我国能源与石化产业正经历深刻变革，唯有强化科 技创新，方能筑牢企业护城河。"大连石化公司负责人表示，辽宁雄厚的产业基础、独特的区位优势， 特别是大连顶尖高校院所云集、西中岛世界级石化产业基地加速建设，为企业营造了得天独厚的创新生 态。 ...

Core Viewpoint - The People's Bank of China (PBOC) in Zhanjiang is actively supporting the manufacturing sector through various financial measures, aiming to enhance the quality and growth of the local economy, with a focus on major projects and innovative service models [1][2]. Group 1: Monetary Policy Tools - The PBOC in Zhanjiang has effectively utilized monetary policy tools to guide funds towards the manufacturing sector, with a total loan issuance of 35.85 billion yuan in the first half of 2025, of which 11.66 billion yuan was directed to manufacturing enterprises, marking a year-on-year increase of 11.46% [3]. - The average interest rate for new corporate loans dropped to 2.88%, a decrease of 49 basis points compared to the same period last year, reducing financing costs for manufacturing companies [3]. Group 2: Credit Investment Quality and Growth - As of June 2025, the balance of manufacturing loans in Zhanjiang reached 61.802 billion yuan, reflecting a year-on-year growth of 26.7%, the highest in Guangdong province [4]. - The increase in manufacturing loans from the beginning of the year amounted to 10.93 billion yuan, with a notable rise in medium to long-term loans, which accounted for 58% of total manufacturing loans, growing by 40.4% year-on-year [4]. Group 3: Service Model Innovation - The PBOC in Zhanjiang is guiding financial institutions to innovate their service models, transitioning from passive lending to proactive service, ensuring a deep match between financial services and industry needs [6]. - The supply chain finance model developed by the Industrial and Commercial Bank of China in Zhanjiang has facilitated financing for small and medium enterprises by leveraging the credit of core enterprises, with a supply chain loan balance of 213 million yuan as of June [6]. Group 4: Focus on Major Project Construction - The PBOC in Zhanjiang has coordinated financial institutions to support major projects, such as the BASF integrated base, with total funding exceeding 19.7 billion yuan, significantly contributing to the growth of manufacturing loans [7]. - The model of "major projects + financial support + industry chain collaboration" has ensured the smooth progress of core projects while allowing financial resources to penetrate into small and micro enterprises [7]. Group 5: Future Development Directions - The PBOC in Zhanjiang plans to continue enhancing financial support for high-quality development in manufacturing by focusing on key projects, industry layout, and quality services [9]. - The bank aims to optimize the financial ecosystem through a combination of policy guidance and market operations, ensuring that financial resources continuously nourish the manufacturing sector [9].

Core Viewpoint - The successful implementation of the electric heating furnace at Lanzhou Petrochemical marks a significant advancement in the electrification of the refining industry, showcasing the safety, economic, and environmental benefits of electric heating technology [1][2] Group 1: Project Implementation - The first electric heating furnace of China Petroleum was put into operation at the Lanzhou Petrochemical acetone thermal medium furnace electrification renovation project [1] - The electric heating thermal medium furnace achieved stable operation with a temperature control precision of ±1°C and high thermal utilization, eliminating safety risks associated with fuel combustion and nitrogen oxide emissions [1] - The project involved comprehensive tasks including equipment installation, transformer setup, electrical cabinet installation, and system upgrades, overcoming challenges related to installation space and system compatibility [1] Group 2: Environmental Impact - The newly designed electric heating thermal medium furnace has an efficiency of over 98% and is expected to reduce carbon dioxide emissions by 3,500 tons per year [2] - The project will increase the electrification rate of the facility by 11%, providing a replicable model for the industry to promote green energy transformation [2]

1. Report Industry Investment Rating No industry investment rating is provided in the report. 2. Core View of the Report The report is a weekly briefing on large - scale refining and chemical industries, presenting the latest data on key projects' spreads, various product prices, profits, inventories, and operating rates, as well as the performance of related listed companies [1][2]. 3. Summary by Directory 3.1 Big Refining Weekly Data Briefing - **Stock Price and Market Value of Listed Companies**: On August 1, 2025, the stock prices of companies like Hengli Petrochemical, Rongsheng Petrochemical, and others were reported, along with their total market values, and the data on their changes in stock prices over different time periods such as the past week, month, three - month, and one - year were presented. The profit forecasts for these companies from 2024 to 2027 were also provided [8]. - **Oil Price and Refining Spread**: The average price of international crude oil (Brent and WTI) this week increased compared to last week, with Brent at $71.2 per barrel (up 3.3%) and WTI at $68.0 per barrel (up 2.7%). The spreads of domestic and foreign key refining projects decreased, with the domestic spread at 2403.5 yuan/ton (down 3.4%) and the foreign spread at 1025.4 yuan/ton (down 7.0%) [8]. - **Polyester Sector**: The average prices of POY, FDY, and DTY increased this week, with POY at 6721.4 yuan/ton (up 142.9 yuan/ton), FDY at 6985.7 yuan/ton (up 171.4 yuan/ton), and DTY at 7907.1 yuan/ton (up 103.6 yuan/ton). The weekly average profits of POY, FDY, and DTY improved, but the inventory days increased, and the operating rate of filament decreased by 0.7 percentage points to 91.9%. The operating rate of downstream looms decreased by 0.1 percentage points to 55.5%, and the raw material inventory of weaving enterprises increased by 1.2 days to 10.4 days, while the finished - product inventory increased by 0.3 days to 30.7 days [2][10]. - **Refining Sector**: The prices of diesel and aviation kerosene in China and the United States decreased this week [2][10]. - **Chemical Sector**: The average price of PX this week was $854.9 per ton (up $5.6 per ton), and the spread compared to crude oil was $335.4 per ton (down $10.8 per ton), with an operating rate of 82.4% (unchanged) [2][10]. 3.2 Big Refining Weekly Report - **2.1 Big Refining Index and Project Spread Trends**: It mainly shows the changes in the Shanghai - Shenzhen 300 Index, the petroleum and petrochemical index, and oil prices, as well as the weekly spreads of domestic and foreign large - scale refining projects [14][19]. - **2.2 Polyester Sector**: It presents multiple data such as the prices, profits, inventories, and operating rates of PX, PTA, MEG, POY, FDY, DTY, polyester staple fiber, polyester bottle chips, and the operating rate of downstream weaving [24][33][38]. - **2.3 Refining Sector**: It includes the prices, spreads, and related data of gasoline, diesel, and aviation kerosene in China, the United States, Europe, and Singapore [83][98][111][121]. - **2.4 Chemical Sector**: It shows the prices, spreads, and related data of various chemical products such as polyethylene LLDPE, homopolymerized polypropylene, EVA foaming materials, EVA photovoltaic materials, styrene, PC, acrylonitrile, and MMA [131][132][139].

Core Insights - The competitiveness of traditional industries in Guangdong Province is continuously improving, with significant production in sectors such as food and beverage, refined edible oils, and beverages, all ranking first nationally [1] - The textile and apparel industries also maintain a strong position, with output and value ranking among the top in the country [1] - The home appliance industry remains the largest in the nation, with production of air conditioners, electric fans, microwave ovens, range hoods, and gas appliances all leading nationally [1] - In the first half of this year, Guangdong Province produced 1.3134 million vehicles, ranking second in the country [1] - The establishment of five integrated refining and chemical bases has led to an annual crude oil processing capacity exceeding 80 million tons, with paint, synthetic detergent, and plastic products also ranking first nationally [1]

Group 1 - The chemical industry is undergoing a phase of eliminating and updating old equipment, with a focus on safety and compliance with industry standards. A plan has been issued for the period 2024-2029 to systematically eliminate outdated production facilities and enhance existing ones [2][3] - The domestic polyester filament capacity has grown rapidly from 33.28 million tons in 2019 to 43.16 million tons in 2023, with an annual growth rate of 5%. However, the growth rate is expected to slow down significantly due to high oil prices and weakening supply-demand dynamics [5][6] - The polyester filament industry is experiencing a shift from extensive capacity expansion to refined operations, with a focus on high-value-added products and structural optimization. This trend is expected to enhance the market position of leading companies [5][6] Group 2 - The leading companies in the polyester filament industry, such as Tongkun Co. and New Fengming, hold significant market shares, with Tongkun accounting for 31.1% of the capacity. The industry concentration is high, with the top six companies (CR6) holding 87.9% of the market [6] - The industry is expected to benefit from a recovery in demand and a decline in oil prices, which will likely improve the overall industry outlook. Leading companies are positioned to leverage their advantages in integration, scale, technology, and cost efficiency [6]