Report Industry Investment Rating No relevant content provided. Core Views The reports focus on the market conditions, important news, logical analysis, and trading strategies of plastic (L) and polypropylene (PP) futures. The market shows fluctuations in prices and trading volumes, affected by various factors such as industry policies, economic data, and geopolitical events. The trading strategies suggest different positions (long, short, or hold) and stop - loss levels based on the analysis of these factors [1][2]. Summary by Relevant Catalogs Market Conditions - **L Plastic**: Prices show fluctuations, with some regions experiencing price increases or decreases. Trading volumes are affected by market sentiment, with downstream demand varying from cautious to slightly improved. For example, on 25 - 10 - 27, L2601 contract rose 36 points or 0.52% to 7005 points, and LLDPE market prices had small fluctuations [1]. - **PP Polypropylene**: Similar to L, PP prices also fluctuate. Some regions see price increases, while downstream demand remains relatively weak in general. On 25 - 10 - 27, PP2601 contract rose 29 points or 0.44% to 6691 points, and the PP market continued a small upward trend [1]. Important News - **Industry Policies**: The Ministry of Industry and Information Technology and other 7 departments issued the "Work Plan for Steady Growth of the Petrochemical and Chemical Industry (2025 - 2026)", aiming for an average annual growth of over 5% in industry added value from 2025 to 2026 [1]. - **Economic and Geopolitical Events**: Events such as the US government shutdown, US tariff policies, and geopolitical tensions in Venezuela have an impact on the market [10][13]. Logical Analysis - **Positive Factors**: Some factors are positive for the polyolefin market, such as the increase in domestic pipeline transportation investment, the increase in US manufacturing PMI, and the increase in the ratio of Baltic dry bulk freight index to Baltic crude oil freight index [17][24]. - **Negative Factors**: Other factors are negative, including the decrease in global stock market value, the decrease in domestic real - estate market indicators, and the decrease in some economic data [43][28]. Trading Strategies - **Unilateral Trading**: Strategies suggest different actions for L and PP contracts, such as holding long or short positions, setting stop - loss levels, or taking a wait - and - see approach [2]. - **Arbitrage**: Some reports suggest holding or taking a wait - and - see approach for L - PP spreads [2]. - **Options**: Most reports recommend a wait - and - see approach for options trading [2].

Core Viewpoint - The introduction of monthly average price futures for linear low-density polyethylene, polyvinyl chloride, and polypropylene on October 28 is expected to enhance risk management and pricing strategies across the plastic industry, addressing the gap in current pricing mechanisms and trade risk management [1][2][3]. Industry Insights - The new monthly average price futures will allow for more effective risk management, transitioning from "point-to-point" to "face-to-face" strategies, thereby reflecting the average price over a month rather than a specific point in time [1][2]. - This tool is anticipated to smooth out short-term market fluctuations and align with the emerging monthly settlement model in spot trading, providing a more accurate reflection of overall price levels [1][2]. - Companies like Mingri Holdings have already successfully utilized existing futures tools for hedging in domestic spot trading, but face challenges in import trading due to reliance on international monthly average pricing [1][2]. Benefits for Different Stakeholders - Upstream producers can embed "monthly average hedging costs" into their pricing models, enhancing their appeal to large clients by locking in profits without worrying about specific selling points [4]. - Midstream traders can stabilize profits by locking in price differentials between upstream and downstream, moving away from the traditional model of speculating on price movements [4]. - Downstream processing companies, especially smaller firms, will benefit directly from the new futures, allowing them to stabilize processing profits and manage raw material costs more effectively [4][5]. Market Dynamics - The monthly average price futures are expected to facilitate a shift from "rough pricing" to "refined pricing" within the plastic industry, promoting long-term contracts and reducing negotiation costs [3][5]. - The introduction of this tool is likely to encourage more companies to participate in the market, enhancing the overall pricing signals and risk management capabilities within the industry [6].

Investment Rating - The report maintains an "Optimistic" rating for the chemical industry [6][19]. Core Insights - The "14th Five-Year Plan" is expected to support high-quality development in the chemical industry, with an estimated market space of around 10 trillion yuan over the next five years [6][7]. - The introduction of the 2026 refrigerant quota plan is anticipated to lead to a contraction in R22 supply, while demand in the maintenance market remains [6][7]. - The semiconductor materials sector is expected to benefit from rising storage demand, with companies like Yake Technology and Anji Technology recommended for investment [6][7]. Summary by Sections Industry Dynamics - Oil supply is expected to increase significantly, driven by non-OPEC production, while global GDP growth is projected at 2.8%, stabilizing oil demand [6][7]. - Coal prices are expected to stabilize at a low level, and natural gas export facilities in the U.S. may accelerate, reducing import costs [6][7]. Chemical Sector Configuration - The report highlights a recovery in manufacturing, with the manufacturing PMI rising to 49.8% [9]. - The investment analysis suggests focusing on sectors benefiting from the "anti-involution" policy, including textiles, agriculture, and export-related chemicals [6][7]. Key Material Focus - Emphasis is placed on self-sufficiency in key materials, particularly in semiconductor and panel materials, with specific companies recommended for investment [6][7]. Price Movements - Recent price movements include a 5.8% increase in Brent crude oil prices and a 2.7% rise in PTA prices [12][13].

1. Report Industry Investment Rating No information provided. 2. Core Viewpoints of the Report - In the short - term, polyethylene (PE) shows a range - bound pattern, mainly driven by macro sentiment and cost factors, with limited fundamental drivers. In the long - term, the supply - demand pressure of PE is difficult to resolve, and the weak pattern is expected to continue [10][11]. - Recently, it is recommended to stay on the sidelines for unilateral trading due to numerous macro uncertainties and limited supply - demand drivers of polyolefins [10]. 3. Summary by Related Catalogs 3.1 Core Contradictions and Strategy Recommendations 3.1.1 Core Contradictions - Cost side: The dual pull of crude oil and coking coal has led to a rebound in the chemical sector. Crude oil prices have rebounded due to geopolitical issues, and coking coal has shown a strong upward trend due to supply - side factors [1]. - Supply - demand side: The PE supply pressure continues to increase, while the demand is generally weak in the second half of this year, and the demand growth drive will be more limited in the fourth quarter. PE is in a situation of strong supply and weak demand, with limited fundamental drivers [2]. 3.1.2 Trading Strategy Recommendations - Near - term trading logic: Polyolefin prices rebounded this week driven by crude oil and coking coal. It is recommended to stay on the sidelines for unilateral trading, and pay attention to macro and cost trends [10]. - Long - term trading expectation: In the long run, the supply of PE is expected to increase further in the fourth quarter, while there is no obvious demand growth driver, so the weak pattern is expected to continue [11]. 3.1.3 Industrial Customer Operation Recommendations - Price range prediction: The price range of polyethylene is predicted to be 6800 - 7200 [17]. - Hedging strategies: Different hedging strategies are provided for inventory management and procurement management, including shorting plastic futures, selling call options, buying plastic futures, and selling put options [17]. 3.2 This Week's Important Information and Next Week's Attention Events 3.2.1 This Week's Important Information - Negative information: The 3 - line HDPE unit of Zhenhai Refining & Chemical is expected to start two weeks ahead of schedule [19]. 3.2.2 Next Week's Important Events to Follow - From Tuesday this week, the plastic futures market showed a bottom - rebound trend, with strong downstream bottom - fishing willingness and a rapid increase in trading volume [20]. 3.3 Disk Interpretation 3.3.1 Price - Volume and Capital Interpretation - Unilateral trend: Driven by the cost side, PE started to rebound from Wednesday [26]. - Capital trend: This week, the open interest changed little, and the market still had a strong bearish sentiment [26]. - Basis structure: The basis of North China and South China weakened slightly, while that of East China strengthened [28]. - Spread structure: The near - term spread structure changed little, and the L1 - 5 spread showed a contango structure [31]. 3.4 Valuation and Profit Analysis - In the context of weak PE prices, the production profits of all production lines are compressed, and the coal - based production line with the best profit is also on the verge of loss [33]. 3.5 Supply - Demand and Inventory Deduction 3.5.1 Supply - Demand Balance Sheet Deduction - The current pattern of strong supply and weak demand of PE is difficult to change. The supply pressure will continue to increase, and the demand growth is limited, so the oversupply pattern is difficult to reverse [39]. 3.5.2 Supply - Side and Deduction - The current PE operating rate is 81.46% (- 0.3%), with little change. The supply pressure will continue to increase due to the return of maintenance units and new capacity put into production [43]. 3.5.3 Import - Export and Deduction - Import: The import of PE is expected to increase from the end of October to November due to the weak overseas supply - demand pattern [47]. - Export: Although the export of PE has increased, the overall volume is still small and has little impact on the supply - demand pattern [47]. 3.5.4 Demand - Side and Deduction - The current average operating rate of PE downstream industries is 45.75% (+ 0.83%). The agricultural film industry is in the peak season, but the demand growth of other downstream industries is limited [55].

1. Report Industry Investment Rating No information provided in the given content. 2. Core View of the Report The polyethylene market is under significant supply pressure and should be approached with a bearish outlook. The upstream supply is ample, and the downstream demand is gradually entering the off - season, with expected weakening. The upstream profit is expected to remain weak, and the market is likely to experience weak and volatile trends [1][7]. 3. Summary According to Relevant Catalogs 3.1 Recent Market Main Contradictions - Supply pressure is relatively large. Upstream has sufficient supply, and downstream demand is gradually decreasing as the peak season is ending [1][7]. 3.2 Polyethylene Industry Situation 3.2.1 Polyethylene Market Situation - **Production**: This week's production slightly decreased to 64.81 million tons. Next week, due to the restart of many maintenance devices, production may slightly increase to 65.72 million tons [5]. - **Imports and Exports**: The import volume is stable at 23.23 million tons, and the export volume is 2.50 million tons. In September, imports were 102 million tons, and exports were 9.9 million tons, slightly higher than expected [5]. - **Apparent Demand**: This week's calculated apparent demand increased slightly to 86.04 million tons [5]. - **Inventory**: There was a slight de - stocking this week, with the total inventory dropping from 106.40 million tons to 105.91 million tons. Next week, a slight inventory build - up is expected, reaching 109.06 million tons [5]. 3.2.2 Valuation - **Raw Material Cost and Upstream Profit**: Crude oil prices rebounded slightly, and coal prices strengthened slightly. PE costs have been oscillating upwards recently. With raw materials strengthening and finished product prices weakening, upstream profits are expected to remain weak next week [6]. - **Import and Export**: LL import profit improved from - 343 to - 155, while HD import profit decreased from 388 to 31. PE export profit weakened, and import profit deteriorated [6]. 3.2.3 Views on Upstream, Mid - stream, and Downstream - **Upstream**: There are many maintenance devices, but production is still high, and the upstream is mainly focused on active sales [7]. - **Mid - stream**: The mid - stream's sales situation is average. After the futures market weakened, futures - cash arbitrageurs actively sold [7]. - **Downstream**: This week's downstream transactions were average. The downstream mainly purchases as needed, and as the peak demand season is ending, demand is expected to decline slightly [7]. 3.3 Basis and Spread - **Basis**: The basis has been oscillating and weakening recently. For example, the North China basis decreased from - 10 to - 40 [6]. - **Inter - monthly Spread**: The inter - monthly spread has been oscillating. For example, the 1 - 5 month spread decreased from - 33 to - 52 [6]. - **Variety Spread**: HD - LL has been oscillating. The far - month LL - PP spread is recommended to be temporarily exited for observation [6]. 3.4 Summary and Outlook - **Strategy**: The market is expected to be weakly volatile. The recommended option strategy is to sell call options [7].

Summary of Key Points Core Viewpoint - Inke Recycling has shown a significant increase in stock price, reflecting positive market sentiment and upcoming corporate actions that may impact shareholder value [1][2]. Company Announcements - Inke Recycling will hold its second extraordinary general meeting of 2025 on November 6, 2025, to discuss six proposals, including amendments to the company's articles of association [1][3]. - The record date for shareholders to attend the meeting is October 29, 2025, and the meeting will take place in Shandong Province [1]. Investment Activities - Inke Recycling's wholly-owned subsidiary, Inke Environmental International (Hong Kong) Limited, plans to invest $30 million (approximately 213.17 million RMB) in Warburg Pincus Global Growth 15, L.P., representing about 0.18% of the fund's target size [2][3]. - The fund aims to raise $17 billion, focusing on energy transition, sustainable development, technology, and healthcare sectors [2]. - This investment is classified as a related party transaction due to common control with Inke Medical, which is also participating in the fund [2].

Investment Rating - The investment rating for the company is "Buy" [6] Core Insights - The company reported a revenue of 3.803 billion yuan for the first three quarters of 2025, representing a year-on-year increase of 17.18%, and a net profit attributable to shareholders of 283 million yuan, up 19.80% year-on-year. In Q3 alone, revenue reached 1.372 billion yuan, a 22.12% increase year-on-year and a 5.76% increase quarter-on-quarter, with a net profit of 93 million yuan, reflecting a 21.27% year-on-year increase but a 5.92% decrease quarter-on-quarter [1][2] Summary by Sections Sales Growth - The company experienced sales growth across multiple product lines in Q3, with year-on-year changes of +4.4% for electrical insulation, +22.3% for new energy, +18.4% for optical films, and +50.1% for electronic materials. Quarter-on-quarter changes were +19.6%, +6.0%, +7.7%, and +10.3% respectively. Average prices varied, with notable declines in new energy and optical films due to raw material price drops [2] Capacity Expansion - The company is set to benefit from significant growth in AI server demand, which will create substantial opportunities for its upstream supply chain, including copper-clad laminates and high-performance resins. The company currently has a production capacity of nearly 5,000 tons for high-speed resins, with a new 20,000-ton project under construction expected to be operational in 2026, potentially quadrupling its capacity [3] Financial Forecast - The company has adjusted its net profit forecast for 2025 to 400 million yuan, while maintaining projections of 790 million yuan and 1.19 billion yuan for 2026 and 2027 respectively. The current price corresponds to a PE ratio of 48.5 for 2025, 24.7 for 2026, and 16.4 for 2027. The company is recognized as a platform-type new materials company with promising products in high-end optical base films and high-speed resins [4]

Report Summary 1. Report Industry Investment Rating There is no information provided regarding the report industry investment rating. 2. Core Viewpoint The supply of plastics is expected to increase. Although the device maintenance remains at a medium level, some major overhaul devices are gradually resuming, which brings pressure to the supply side. The performance of the traditional peak demand season is lower than expected. Although the operating rates of most downstream industries remain at a high level for the year, the subsequent orders of some factories have slowed down. Downstream enterprises are highly cautious, with low willingness to purchase raw materials, and mainly make low - price just - in - time purchases. Overall, the supply - demand trend is loose [6]. 3. Summary by Directory Supply - PE production enterprise operating rate is 81.46%, a week - on - week decrease of 0.37%; PE weekly output is 648,100 tons, a week - on - week decrease of 0.37% [9]. - The report shows the historical data and trends of PE capacity utilization and weekly output in China from 2021 to 2025, and the production ratio of LLDPE, HDPE, and LDPE from October 8, 2024, to October 8, 2025 [12][15]. Demand - The weighted operating rate of PE downstream industries has seasonally increased, with a weighted operating rate of 45.75%, a week - on - week increase of 1.85% [9]. - The report presents a chart of the historical data and trends of the operating rate of PE downstream industries in China from 2021 to 2025, as well as the sub - item operating rates of different downstream industries such as agricultural film, packaging film, etc., from July 14, 2023, to July 14, 2025 [20]. Inventory - This week, PE enterprise inventory is 514,600 tons, a week - on - week decrease of 2.81%; social inventory is 545,400 tons, a week - on - week decrease of 0.04% [9]. - The report shows the historical data and trends of PE enterprise inventory and social inventory in China from 2021 to 2025 [24]. Upstream and Cost - The report displays the historical data and trends of the weekly output of ethylene produced by different methods (such as MTO) in China from 2021 to 2025, as well as the total weekly output of ethylene [29]. - It also shows the historical data and trends of the weighted operating rate and weighted output of ethylene downstream industries in China from 2021 to 2025 [32]. Price and Profit - This week, the PE spot price decreased by 0.21% week - on - week to 7,136 yuan/ton, and the PE futures price increased by 0.74% week - on - week to 6,999 yuan/ton [9]. - The report presents the profit charts of different production methods of LLDPE (oil - based, coal - based, etc.) from October 7, 2024, to October 7, 2025, and the oil - based profits of LLDPE, HDPE, and LDPE from June 10 to June 10 of different months [37]. - It also shows the import profit charts of LLDPE, HDPE, and LDPE from February 4, 2025, to August 4, 2025 [40]. Basis and Spread - The basis is 136, and the (1 - 5) spread is - 52 [9]. - The report shows the historical data and trends of the LLDPE basis in China from 2021 to 2025, as well as the 1 - 5 polyethylene spread from September 8, 2025, to October 8, 2025 [45].

1. Report Industry Investment Rating - No relevant content provided 2. Core View of the Report - The recent cost increase has driven the rebound of plastics, but the plastics themselves lack upward momentum. It is expected that plastics will mainly fluctuate weakly [1] 3. Summary by Relevant Catalogs 3.1 Market Analysis - On October 24, the number of maintenance devices changed little, and the plastic operating rate remained at around 86.5%, which is currently at a neutral level. The downstream operating rate of PE increased by 0.83 percentage points to 45.75% month - on - month. The agricultural film has entered the peak season, but the peak season is not as good as expected. After the National Day, the stocking demand weakened periodically, and downstream enterprises were not willing to purchase. The cost of crude oil has rebounded significantly at a low level, and new production capacity has been put into operation. There is no actual anti - involution policy in the plastics industry, which will affect the subsequent market [1] 3.2 Futures and Spot Market Conditions 3.2.1 Futures - The plastic 2601 contract opened higher, then reduced positions and oscillated downward. The lowest price was 6957 yuan/ton, the highest price was 7017 yuan/ton, and it finally closed at 6969 yuan/ton, below the 60 - day moving average, with a decline of 0.07%. The open interest decreased by 2302 lots to 529187 lots [2] 3.2.2 Spot - The PE spot market showed mixed trends, with price changes ranging from - 50 to + 50 yuan/ton. LLDPE was reported at 6910 - 7470 yuan/ton, LDPE at 9070 - 9930 yuan/ton, and HDPE at 7260 - 8090 yuan/ton [3] 3.3 Fundamental Tracking - Supply: On October 24, the number of maintenance devices changed little, and the plastic operating rate remained at around 86.5%, at a neutral level [4] - Demand: As of the week of October 24, the downstream operating rate of PE increased by 0.83 percentage points to 45.75% month - on - month. The agricultural film has entered the peak season, and orders and raw material inventories have increased, but are still lower than in previous years. Packaging film orders have increased slightly, and the overall downstream operating rate of PE is still at a relatively low level in the same period in recent years [4] - Inventory: During the National Day holiday, the petrochemical inventory increased by 270,000 tons month - on - month. On Friday, it decreased by 40,000 tons to 720,000 tons, 5,000 tons lower than the same period last year. The inventory accumulation during the National Day this year was similar to previous years, and the current petrochemical inventory is at a neutral level in the same period in recent years [4] - Raw Materials: The Brent crude oil 01 contract rose to $65/barrel. The price of Northeast Asian ethylene remained flat at $770/ton month - on - month, and the price of Southeast Asian ethylene remained flat at $780/ton month - on - month [4]

Core Insights - The plastic production in Hunan Province for June 2025 reached 32,000 tons, showing a year-on-year increase of 0.9%, with a growth rate 17.1 percentage points higher than the same period last year [1] - For the first half of 2025, the total plastic production in Hunan Province was 174,000 tons, reflecting a year-on-year decline of 6.3%, although the growth rate was 13.2 percentage points higher than the previous year [3] - Hunan's plastic production accounted for 0.3% of the national total in June 2025, while the first half of the year saw it represent 0.2% of the national output [1][3] Monthly Production Analysis - In June 2025, the plastic production in Hunan Province was 32,000 tons, with a significant increase in growth rate compared to the previous year [1] - The cumulative plastic production from January to June 2025 was 174,000 tons, indicating a decline compared to the same period last year [3] National Comparison - The growth rate of Hunan's plastic production in June 2025 was 11.2 percentage points lower than the national average [1] - The cumulative decline in Hunan's plastic production for the first half of 2025 was 16.6 percentage points lower than the national average [3]