1. Report Industry Investment Rating - Not provided in the document 2. Core View of the Report - The fundamental situation of lithium carbonate continues to show a tight supply - demand balance. The total inventory has been decreasing for 12 consecutive weeks, and the de - stocking amplitude has further expanded. Although domestic production has continuously reached new highs and the import volume is expected to increase in November, the terminal market is strong. However, the expected acceleration of the resumption of production may put pressure on the price. It is recommended to take appropriate profit - taking for long positions near the previous high and wait for opportunities to go long on dips [5]. 3. Summary by Relevant Catalogs 3.1 Macro Overview - In October, China's official manufacturing PMI dropped to 49, and the non - manufacturing index rose to 50.1. Exports denominated in US dollars decreased by 1.1% year - on - year, and imports increased by 1.0% year - on - year. The eurozone's manufacturing PMI was 50 in October, with Germany and France in continuous contraction. The US ISM manufacturing PMI contracted for 8 consecutive months, but the service PMI reached an 8 - month high. The US government shutdown has entered its 36th day [3]. 3.2 Supply Side - This week, the weekly output of lithium carbonate continued to increase, remaining above 23,000 tons and reaching a new high for the year. The average industry operating rate rebounded to over 50%. In October 2025, Chile exported 25,000 tons of lithium carbonate, a 56% increase from the previous month, with 16,200 tons exported to China [3]. 3.3 Demand Side - According to the preliminary statistics of the Passenger Car Association, from October 1 - 31, the retail sales of the national passenger car market were 2.387 million vehicles, a 6% year - on - year increase and a 7% increase from the previous month. The cumulative retail sales this year were 19.395 million vehicles, a 9% year - on - year increase. The wholesale volume of national passenger car manufacturers was 2.922 million vehicles, a 7% year - on - year increase and a 4% increase from the previous month. The cumulative wholesale volume this year was 23.769 million vehicles, a 12% year - on - year increase [4]. 3.4 Cost and Profit - This week, the price of the mining end increased. The price of African SC 5% remained unchanged at $630 per ton compared to last week. The CIF price of Australian 6% spodumene was $940 per ton, a decrease of $53 per ton from last week. The market price of lepidolite was 2,775 yuan per ton, an increase of 100 yuan from last week. The production cost of lithium carbonate was 71,169 yuan per ton, a decrease of 9 yuan from last week, and the industry profit was 8,904 yuan per ton, an increase of 1,887 yuan [4]. 3.5 Total Inventory - As of November 6, the total inventory of lithium carbonate was 123,953 tons, a decrease of 3,406 tons from last week. The inventory of upstream smelters was 30,715 tons, a decrease of 1,336 tons from the previous week [5]. 3.6 Market Review - As of November 7, LC2601 closed at 82,300 yuan per ton, a 1.9% increase from last week. The spot price of battery - grade lithium carbonate was 80,250 yuan per ton, a 2.7% decrease from last week. The basis discount widened, and the main contract's open interest was 492,000. The main contract first declined and then rose this week. On Tuesday, the market was impacted by the news of the full resumption of mica mines by CATL and Guoxuan, causing the lithium price to drop significantly. However, due to strong downstream demand, tight supply - demand balance, and continuous de - stocking, the price was difficult to fall deeply [8]. 3.7 Product Output and Operating Rate - **Lithium Carbonate**: As of November 7, the output was 23,465 tons, a week - on - week increase of 145 tons. The enterprise operating rate was 51.53%, a week - on - week decrease of 1.12%. The price increase stimulated production enthusiasm, and the production of some enterprises increased [10]. - **Lithium Hydroxide**: As of November 7, the output was 6,455 tons, a week - on - week increase of 165 tons. The enterprise operating rate was 36.72%, a week - on - week decrease of 4.72%. Mainstream holders focused on fulfilling long - term contracts, and cathode material manufacturers were cautious in purchasing [12]. - **Lithium Iron Phosphate**: As of November 7, the output was 96,856 tons, a week - on - week increase of 8,420 tons. The enterprise operating rate was 85.24%, a week - on - week increase of 7.41%. The industry was in a situation of both strong supply and demand [14]. - **Ternary Materials**: The demand in the power field was strong, and the production schedule increased slightly [16]. - **Other Cathode Materials**: The demand structure was differentiated, and the supply remained stable [24]. 3.8 Inventory Situation - **Lithium Carbonate Industry**: As of November 6, the total inventory was 123,953 tons, a decrease of 3,406 tons from last week. The warehouse receipt inventory was 27,332 tons, a decrease of 289 tons from last week. The post - holiday de - stocking accelerated, and the warehouse receipt continued to decline, intensifying the tightness of spot circulation [32]. - **Lithium Iron Phosphate Industry**: As of November 7, the total inventory was 40,132 tons, a decrease of 541 tons from last week. The finished - product inventory continued to decline, and the market demand drove inventory digestion [35]. 3.9 Cost and Profit of Products - **Lithium Carbonate**: As of November 7, the production cost was 71,169 yuan per ton, a decrease of 9 yuan from last week, and the industry profit was 8,904 yuan per ton, an increase of 1,887 yuan. The price of lithium ore followed the fluctuation of lithium carbonate, and the de - stocking trend supported the price [49]. - **Lithium Hydroxide**: As of November 7, the production cost was 68,465 yuan per ton, a decrease of 1,001 yuan from last week, and the industry profit was 7,643 yuan per ton, an increase of 943 yuan from last week. The supply tightened, and the inventory de - stocking supported the price [51]. - **Lithium Iron Phosphate**: As of November 7, the production cost was 36,677 yuan per ton, a decrease of 220 yuan from last week, and the loss was 2,463 yuan per ton, an increase of 37 yuan per ton from last week. Although the raw material price was strong and the demand was high, the over - capacity of conventional products limited price increases [53]. - **Ternary Materials and Other Products**: The cost - profit transmission was not smooth, and the industry profit level faced challenges [56].

Core Viewpoint - The A-share market shows mixed performance with sectors like lithium battery electrolyte and fluorochemical leading the gains, indicating a positive trend in the chemical industry driven by demand from the new energy sector [1] Group 1: Market Performance - On November 10, the A-share market experienced a divergence in performance, with the Zhongzheng Petrochemical Industry Index rising over 2%, and stocks like Luxi Chemical hitting the daily limit [1] - The Petrochemical ETF (159731) has seen significant net inflows, totaling 101 million yuan over the past 10 trading days, indicating strong investor interest [1] Group 2: Industry Trends - In September, the production of new energy vehicles reached 1.58 million units, accounting for 49% of total automobile production, with lithium iron phosphate batteries making up 73% of domestic power battery sales [1] - The lithium battery industry is entering a peak season in October, with production across the entire supply chain expected to increase by 3% to 9% month-on-month and 21% to 51% year-on-year [1] - Cumulative production of lithium carbonate, batteries, and key materials has shown a year-on-year increase of 27% to 58% as of October, with significant growth in battery anode materials and electrolytes exceeding 40% year-on-year [1] Group 3: Investment Recommendations - CITIC Securities highlights three main trading themes in the chemical sector: 1. The demand for energy storage is boosting the industry's overall outlook, with a reshaping of supply and demand dynamics for upstream lithium battery materials [1] 2. Continued efforts to combat internal competition in the chemical sector are expected to lead to a recovery in chemical product prices [1] 3. The chemical industry is experiencing high levels of prosperity, with core business expected to maintain strong growth [1] Group 4: ETF and Fund Insights - The Petrochemical ETF (159731) and its linked funds closely track the Zhongzheng Petrochemical Industry Index, with the basic chemical industry accounting for 60.8% and the oil and petrochemical industry for 32.2%, positioning them to benefit from the improved industry outlook and anti-internal competition policies [2]

Group 1 - The 15th High-Performance Lithium Battery Annual Conference will be held from November 18 to 20 in Shenzhen, with Zhu Wu, General Manager of Mengguli New Materials, confirmed to attend as a roundtable dialogue guest [2] - Zhu Wu has 16 years of experience in the lithium battery industry and has held managerial positions in several leading new energy material companies, contributing to significant awards and recognitions [4] - Mengguli New Materials, established in 2000, focuses on the R&D, production, and sales of lithium-ion battery cathode materials, with a registered capital of 460 million yuan [4][5] Group 2 - The company was officially listed on the Shenzhen Stock Exchange's Growth Enterprise Market on August 9, 2023, and emphasizes the simultaneous development of technological innovation and product upgrades [5] - Mengguli has achieved a comprehensive voltage platform for lithium cobalt oxide, covering 4.2V to 4.55V, with high-voltage products validated by key customers [6] - The company’s ternary cathode materials include high-nickel and single crystal series, with significant breakthroughs in medium-nickel high-voltage products and successful domestic replacements for NCA products [6]

Core Viewpoint - The North American electricity shortage continues to drive up sectors such as energy storage, lithium batteries, power equipment, and photovoltaics, with significant profit opportunities expected in the energy storage downstream integration and operation segments [1] Group 1: Market Performance - The ChiNext New Energy ETF (159368) experienced fluctuations, with stocks like Tianhua New Energy and Dike Co. rising over 7%, while Haineng Technology increased by over 5% [1] - The ETF is the largest in tracking the ChiNext New Energy Index, which covers various segments of the new energy and electric vehicle industries, including batteries and photovoltaics [1] Group 2: Investment Opportunities - Energy storage is highlighted as one of the best supporting power sources for AIDC, with a high certainty of volume growth [1] - There is an expectation that profits will be passed from upstream to materials and battery segments through price increases, with opportunities for both volume and price growth in these areas [1] - The demand outlook for 2026 is becoming clearer, particularly for materials like 6F and VC, which are experiencing rapid price increases, as well as leading opportunities in lithium iron phosphate, anode materials, separators, and aluminum foil [1] Group 3: ETF Characteristics - The ChiNext New Energy ETF has the highest elasticity, with a potential increase of up to 20%, and the lowest fee structure, with a total management and custody fee of only 0.2% [1] - As of October 31, 2025, the ETF's scale reached 829 million yuan, with an average daily trading volume of 90.05 million yuan over the past month [1] - The ETF has a storage content of 58% and a solid-state battery content of 31%, aligning well with current market trends [1]

Group 1 - A-shares opened slightly higher on November 10, with active performance in sectors such as lithium batteries, chemical raw materials, and memory chips [1] - The A500 ETF fund (512050) saw a net subscription of 2.768 billion yuan over the past 10 trading days, indicating accelerated capital allocation towards core A-share assets [1] - The National Bureau of Statistics reported a 0.2% month-on-month and year-on-year increase in CPI for October, with core CPI (excluding food and energy) rising 1.2% year-on-year, marking the sixth consecutive month of growth [1] Group 2 - Galaxy Securities anticipates that the hidden main line in the A-share investment landscape may be the themes unfolding in the year-end market, suggesting a buildup for a new upward trend [2] - The third-quarter reports of listed companies demonstrate resilience in fundamentals, with notable structural highlights [2] - The "14th Five-Year" plan emphasizes high-quality development and technological self-reliance, aiming to enhance macroeconomic governance effectiveness [2]

Core Viewpoint - The chemical industry has experienced a decline in profitability for three consecutive years since 2022, with some sectors facing intense competition and overall losses. However, there is a shift towards industry self-regulation to restore product supply-demand balance and improve profitability [1] Industry Overview - The agricultural chemicals, refrigerants, bioenergy, tires, and metal chromium sectors are currently in an upward cycle of prosperity [1] Market Trends - According to GGII statistics, domestic energy storage lithium battery shipments are expected to reach 430 GWh in the first three quarters of 2025, exceeding 30% of the total for 2024, with an anticipated annual total of 580 GWh, representing a 67% year-on-year growth. This surge in storage demand, coupled with pre-subsidy rushes, has led to strong demand for upstream lithium battery materials, resulting in a supply shortage and a continuous price recovery [1] - Nutrien forecasts that global potash demand may further increase to 74-77 million tons by 2026, with global potash prices expected to maintain high levels and potential for further increases due to major companies delaying capacity expansions [1] Investment Focus - CITIC Securities indicates that the chemical sector is currently trading around three main themes: 1. The rise in energy storage demand is enhancing the prosperity of the supply chain, with a reshaping of the supply-demand dynamics for upstream lithium battery materials, recommending a focus on new energy-related materials [1] 2. The ongoing "anti-involution" efforts in the chemical industry are leading to self-regulation across multiple sectors, which is likely to support a bottoming out and recovery in chemical product prices [1] 3. The chemical sector itself is experiencing high prosperity, with core businesses expected to maintain robust growth [1]

Market Overview - Major indices opened higher with Shanghai Composite Index up 0.11%, Shenzhen Component Index up 0.37%, and ChiNext Index up 0.43% [1] - Key sectors showing gains include fluorine chemical, phosphorus chemical, and precious metals [1] Index Performance - Shanghai Composite Index: 4001.79, up 0.11%, with 1183 gainers and 702 losers [2] - Shenzhen Component Index: 13453.37, up 0.37%, with 1549 gainers and 854 losers [2] - ChiNext Index: 3221.93, up 0.43%, with 753 gainers and 438 losers [2] Institutional Insights - CITIC Securities emphasizes the importance of identifying performance elasticity and focusing on structural market trends, particularly in AI and new energy sectors [2] - China Galaxy Securities highlights the ongoing adjustment in the tech sector and suggests focusing on themes like anti-involution and dividends, with a rotation among sectors such as electric grid equipment and lithium batteries [3] - Huatai Securities recommends a "dumbbell" strategy for short-term investments, focusing on low-valuation sectors and potential recovery in dividend-paying stocks [4]

Group 1 - CITIC Securities maintains a bullish outlook on gold stocks, indicating a decrease in volatility for commodities and stock indices [1] - The sentiment index for A-shares and Hong Kong stocks has declined, with a notable drop in the VIX for major indices [1] - Institutional focus is shifting towards defense, military, and non-bank financial sectors, while interest in the telecommunications sector is decreasing [1] Group 2 - CICC forecasts a more balanced market style for A-shares by 2026, driven by the restructuring of the international monetary order and the AI revolution [2] - The report emphasizes the importance of fundamentals and the movement of global and domestic funds in shaping market dynamics [2] - Three main investment themes are suggested: growth in prosperous sectors, breakthroughs in external demand, and cyclical reversals [2] Group 3 - China Galaxy Securities highlights the ongoing adjustment in the technology sector, with a focus on the rotation of market themes [3] - The report notes that the market is expected to maintain rapid rotation, with sectors like electric grid equipment, lithium batteries, and chemicals showing upward trends [3] - Key investment themes include anti-involution, new productive forces, consumer sectors, and "dual heavy" areas benefiting from project construction [3]

Core Viewpoint - The electrolyte market has seen a significant price increase due to tight supply of key additives like lithium hexafluorophosphate, VC, and FEC, driven by sustained growth in downstream demand [2][3] Demand - The energy storage sector is expected to drive a new lithium battery cycle, with Q1 2026 anticipated to remain strong despite seasonal trends. Historical large-scale lithium cycles have been primarily demand-driven, with the upcoming period from 2025 to 2027 expected to be driven by global energy transition [2][3] - According to CESA's database, China's new overseas orders/cooperation in energy storage reached 214.7 GWh from January to September 2025, marking a year-on-year increase of 131.75%. As these orders materialize, Q1 2026 is expected to be robust [2][3] Supply Elasticity - The supply elasticity in the electrolyte segment is the lowest, while structural demand and supply resonance exist in copper foil, separators, and high-end lithium iron phosphate. The negative electrode supply faces high energy consumption constraints [3] - New capacity for lithium hexafluorophosphate and lithium iron phosphate is slow to build due to environmental regulations and construction timelines of approximately 1 to 1.5 years for hexafluorophosphate and about 1 year for lithium iron phosphate. The demand for fourth-generation lithium iron phosphate products is strong [3] - The graphite anode segment has high energy consumption characteristics, with an expansion period of about 1 year. Other segments like copper foil also face significant environmental pressures. The wet separator market is expected to gain market share due to energy storage demand, remaining tight [3] Investment Recommendations - The company is optimistic about the lithium battery upcycle driven by energy storage demand and suggests focusing on companies such as CATL, EVE Energy, Tiankang Materials, Dafa, Putailai, Shanta Technology, Fulin Precision, Wanrun New Energy, Sungrow Power, Haibo Sichuang, Huasheng Lithium Battery, Shida Shenghua, and Enjie [3]

Core Viewpoint - The urgent demand for AI computing power, combined with the global push for carbon emission reduction, will drive a major cycle in clean energy and new grid construction over the next 3-5 years [2][3] Energy Storage - The electricity shortage narrative continues in North America, with a resonance between the Chinese and American markets; the white paper on "China's Actions for Carbon Peak and Carbon Neutrality" further establishes the critical role of energy storage [2][3] Lithium Battery - The price of lithium iron phosphate continues to rise, with a significant increase in demand for power battery cells; the average price of lithium iron phosphate power batteries rose by 4.19% compared to the previous week [2][3] - Graphitization of negative electrodes is under pressure from demand growth and cost, leading to a strong desire for price increases among graphitization companies [2] Wind Power - Wind turbine prices and quantities continue to exceed expectations, with a positive outlook on the extent and duration of profit recovery; Jiangsu's plan for 35.8GW of wind power, with over 90% from offshore wind, is expected to boost the offshore wind sector [2][3] Photovoltaics - As the year-end approaches, the production schedule in the photovoltaic industry is seasonally weakening, but the decline in production is less than previously predicted; a total of 51GW of modules are expected to be produced, with a 4% decrease [3] - The ongoing electricity shortage and strengthened domestic carbon reduction goals may gradually trigger a recovery in market expectations for photovoltaic demand [3] Hydrogen Energy and Fuel Cells - The demand for Solid Oxide Fuel Cells (SOFC) is exceeding expectations, with new supply chain opportunities emerging; the position of hydrogen energy as a new growth pole in the "14th Five-Year Plan" is established [3][6] Industry Events - The State Council's white paper on carbon peak and carbon neutrality was released, and the National Energy Administration issued guidelines for the integration of coal and new energy [6] - The approval of the Panshi ultra-high voltage AC project, with a total investment of 23.2 billion, is expected to start construction in the first half of 2026 [6]