1. Report Industry Investment Rating - Not provided in the document 2. Core Viewpoints of the Report - The asphalt spot and futures prices have dropped significantly, and the market focus will shift from the end - stage to winter storage. The cost side is affected by crude oil price changes, and the production and demand of asphalt are facing different situations in different links of the industrial chain, with a generally bearish outlook on prices [1][22] 3. Summaries According to the Table of Contents 3.1 Asphalt Industry Chain Overview - **Supply - Demand Balance**: From October 27 to November 23, the weekly total asphalt production decreased by 5.8% from 56.4 tons to 53.1 tons, and then increased. The total domestic asphalt production in November is expected to be 222.8 tons, a 16.9% month - on - month and 11.0% year - on - year decrease. The total weekly import remained stable at 8 tons and then decreased to 7 tons. The total apparent demand decreased by 13.2% from 78 tons to 67 tons. The total inventory decreased by 4.2% from 198 tons to 189 tons [14] - **Valuation and Profit**: The cost of diluted asphalt with and without quota decreased. The profit of main refineries increased from - 80 to - 23, and the profit of some refineries decreased. The spread between residue oil and asphalt is expected to rise, and the import profit from Iran in East China remained stable. The basis is expected to maintain a positive basis [16] - **Market Outlook**: The upstream, mid - stream, and downstream of the asphalt industry chain are all bearish on prices. The upstream cost is affected by crude oil, the mid - stream has intense brand competition and weak demand, and the downstream demand is shrinking and purchasing is cautious [22] 3.2 Asphalt Refinery Profits - The document provides multiple profit charts of refineries using different raw materials such as heavy diluted asphalt and heavy high - sulfur Middle Eastern oil, including comprehensive profits and itemized profits of asphalt, diesel, and gasoline [28][39] 3.3 Asphalt Supply - **Refinery Maintenance**: Multiple refineries have carried out or are planning maintenance, including Sinochem Quanzhou, PetroChina Qinhuangdao, etc., mainly for reasons such as production transfer and regular shutdown [50] - **Production Volume**: The daily asphalt production shows different trends in different years. The production of main refineries, Sinopec refineries, and refineries using different raw materials (diluted asphalt with or without quota) also has different changes in monthly and cumulative values [54][56][58] - **Import and Inventory**: The asphalt import volume and diluted asphalt import volume have their own trends, and the diluted asphalt port inventory also shows different changes in different regions [79][82][86] 3.4 Refinery Production Choices - **Profit and Price**: Comparing data from 2024 to 2025, the prices of Brent, WTI, Shandong diesel, etc. have changed, and the comprehensive profits of medium - quality refineries and Shandong local refineries have also changed accordingly [90] - **开工率**: The operating rates of main refineries' atmospheric and vacuum distillation units, Shandong local refineries' atmospheric and vacuum distillation units, and the national coking operating rate have different trends in different years [95][97] - **Production Volume of Related Products**: The production volumes of gasoline and diesel show different trends in monthly, cumulative, and weekly values [100][102]

Investment Rating - The report maintains a "Positive" investment rating for the oil processing industry, consistent with the previous rating [1]. Core Insights - International oil prices have declined due to concerns over interest rate cuts and strong demand for safe-haven assets, alongside weak manufacturing data from Asia and the US. As of November 7, 2025, Brent and WTI prices were $63.63 and $59.84 per barrel, respectively [2][9]. - The oil and petrochemical sector has shown strong performance, with the sector rising by 4.47% as of November 7, 2025, compared to a 0.82% increase in the CSI 300 index [10][13]. - The report highlights significant increases in US crude oil imports and a rise in total crude oil inventory, indicating a potential shift in market dynamics [49][53]. Summary by Sections Oil Price Review - As of November 7, 2025, Brent crude futures settled at $63.63 per barrel, down $1.14 (-1.76%) from the previous week, while WTI crude futures also fell by $1.14 (-1.87%) to $59.84 per barrel [22][24]. Offshore Drilling Services - The number of global offshore self-elevating drilling rigs remained stable at 369, and floating drilling rigs at 130 as of November 3, 2025 [26]. Crude Oil Supply - US crude oil production reached 13.651 million barrels per day as of October 31, 2025, an increase of 0.07 million barrels per day from the previous week. The number of active drilling rigs was stable at 414 [40][41]. Crude Oil Demand - US refinery crude oil processing increased to 15.256 million barrels per day as of October 31, 2025, with a refinery utilization rate of 86.00%, down 0.6 percentage points from the previous week [52]. Crude Oil Inventory - Total US crude oil inventory was 831 million barrels as of October 31, 2025, reflecting an increase of 5.7 million barrels (+0.69%) from the previous week [53]. Refined Oil Prices - In North America, the average prices for diesel, gasoline, and jet fuel were $102.44, $80.90, and $94.67 per barrel, respectively, as of November 7, 2025 [82][86].

Investment Rating - The industry investment rating is "Positive" based on the performance of the refining sector and the overall market conditions [150]. Core Insights - The report highlights that low inventory levels of polyester filament support product prices and improve profitability [1]. - The Brent crude oil average price for the week ending November 7, 2025, was $64.23 per barrel, reflecting a decrease of 1.45% [2][3]. - Domestic and international refining project price differentials have shown positive trends, with domestic projects at 2327.79 CNY/ton (+0.78%) and international projects at 1361.85 CNY/ton (+4.33%) [2][3]. Summary by Sections Refining Sector - The report notes that international oil prices experienced fluctuations due to various geopolitical factors and economic data, with Brent and WTI prices at $63.63 and $59.75 per barrel, respectively [15]. - Domestic refined oil prices showed slight fluctuations, with diesel, gasoline, and aviation kerosene averaging 6682.71 CNY/ton, 7614.29 CNY/ton, and 5865.29 CNY/ton [15]. Chemical Sector - The chemical market is described as relatively weak, with no significant improvement in price differentials despite declining costs [2]. - Polypropylene prices and differentials have shown stability, with average prices for various types of polypropylene reported [56][71]. Polyester & Nylon Sector - The report indicates that polyester filament supply is supported by low inventory levels, leading to slight price increases [90]. - The average prices for polyester filament types are reported, with POY at 6507.14 CNY/ton, FDY at 6721.43 CNY/ton, and DTY at 7803.57 CNY/ton [108]. Market Performance of Major Refining Companies - The report tracks the stock performance of six major refining companies, with notable increases in stock prices for companies like Rongsheng Petrochemical (+5.99%) and Hengli Petrochemical (+8.02%) over the past week [137][140]. - The overall performance of the refining index has increased by 52.08% since September 4, 2017, outperforming the broader market indices [138].

Core Viewpoint - As of November 7, 2025, International Industry (000159) saw a stock price increase of 5.12% from the previous week, closing at 6.36 yuan, with a market capitalization of 3.057 billion yuan [1] Group 1: Stock Performance - The highest intraday price on November 7 was 6.44 yuan, while the lowest intraday price on November 3 was 6.07 yuan [1] - The current total market capitalization is 3.057 billion yuan, ranking 62 out of 64 in the photovoltaic equipment sector and 4538 out of 5166 in the A-share market [1] Group 2: Shareholder Changes - As of October 31, 2025, the number of shareholders decreased to 38,800, a reduction of 2,230 shareholders or 5.44% from the previous period [2] - The average number of shares held per shareholder increased from 11,700 shares to 12,400 shares, with an average holding value of 75,000 yuan [2]

Report Industry Investment Rating - Not provided in the content Core View of the Report - The asphalt market is experiencing a downward trend with fluctuating prices. Supply is expected to increase due to planned refinery restarts, while demand will gradually weaken. The market is digesting news such as Russian oil sanctions and OPEC+ production decisions, and the asphalt futures price is showing a weak and fluctuating trend [1]. Summary by Relevant Catalogs 1. Market Analysis - Supply: This week, the asphalt operating rate decreased by 1.8 percentage points to 31.5%, which is 3.5 percentage points higher than the same period last year and at a relatively low level in recent years. In November, the domestic asphalt production is expected to be 2.228 million tons, a decrease of 454,000 tons or 16.9% from the previous month, and a decrease of 274,000 tons or 11.0% year-on-year. Some refineries plan to restart production, which will increase asphalt output [1]. - Demand: This week, the operating rates of most downstream asphalt industries increased. The road asphalt operating rate increased by 1 percentage point to 34%, slightly exceeding the level of the same period last year, but it is restricted by funds and weather. Northern projects are rushing to work, and the market is actively shipping, but funds are still a constraint, and subsequent demand will gradually weaken. In the south, rainfall has increased, and there is more inquiry for low - priced goods [1]. - Inventory: As of the week of November 7, the inventory - to - sales ratio of asphalt refineries continued to decline slightly and remained at the lowest level in recent years [1][4]. - Crude Oil: The market is digesting the news of Russian oil sanctions. The meeting between the leaders of China and the United States basically met market expectations, and the relationship between the two countries has not changed fundamentally. OPEC+ decided to increase production by 137,000 barrels per day in December but suspend production increase in the first quarter of next year. Crude oil prices are fluctuating [1]. - Basis: The long - term low - price resources of refineries are being released intensively. Recently, the basis of asphalt in Shandong has dropped significantly from a high level and is currently at a neutral level. Spot prices are continuously following the decline [1]. 2. Futures and Spot Market Conditions - Futures: Today, the asphalt futures 2601 contract fell 2.40% to 3048 yuan/ton, below the 5 - day moving average. The lowest price was 3038 yuan/ton, the highest was 3112 yuan/ton, and the open interest increased by 12,624 to 214,266 lots [2]. - Basis: The mainstream market price in Shandong has dropped to 3060 yuan/ton, and the basis of the asphalt 01 contract has risen to 12 yuan/ton, at a neutral level [3]. 3. Fundamental Tracking - Supply: Some refineries such as Zhonghua Quanzhou and Zhongyou Qinhuangdao have stopped asphalt production, and the asphalt operating rate has decreased by 1.8 percentage points to 31.5%, which is 3.5 percentage points higher than the same period last year and at a relatively low level in recent years [1][4]. - Investment Data: From January to September, the national highway construction investment decreased by 6.0% year - on - year, and the cumulative year - on - year growth rate slightly rebounded compared with January - August 2025 but was still negative. From January to September 2025, the cumulative year - on - year growth rate of the actual completed fixed - asset investment in road transportation was - 2.7%, a slight rebound from - 3.3% in January - August 2025 but still in a negative growth situation. From January to September 2025, the cumulative year - on - year growth rate of fixed - asset investment in infrastructure construction (excluding electricity) decreased from 2.0% in January - August 2025 to 1.1% [4]. - Social Financing: From January to September 2025, the social financing stock increased by 8.7% year - on - year, and the growth rate decreased by 0.1 percentage point compared with January - August. In September, the new social financing reached 3.53 trillion, but it was 233.5 billion less than the same period last year under a high base. Attention should be paid to the progress of forming physical workload [4]. - Inventory: As of the week of November 7, the inventory - to - sales ratio of asphalt refineries decreased by 1.2 percentage points to 14.1% compared with the week of October 31 and remained at the lowest level in recent years [4].

Core Viewpoint - On November 7, Rongsheng Petrochemical executed a block trade of 1 million shares, amounting to 10.8 million yuan, which accounted for 1.01% of the total trading volume for the day, with the transaction price remaining stable at 10.8 yuan, equal to the market closing price [1][2]. Group 1: Trade Details - The block trade occurred on November 7, 2025, involving the stock code 002493 for Rongsheng Petrochemical [2]. - The transaction price was set at 10.80 yuan per share, with a total volume of 1 million shares traded [2]. - The total transaction amount reached 10.8 million yuan [1][2].

Core Viewpoint - Rongsheng Petrochemical's stock has reached a new high in trading volume since October 9, 2024, indicating strong market interest and performance [2] Group 1: Trading Performance - As of 14:43, Rongsheng Petrochemical's trading volume was 1.017 billion RMB, marking a new high since October 9, 2024 [2] - The latest stock price increased by 4.66%, with a turnover rate of 1.01% [2] - The previous trading day's total volume was 361 million RMB [2] Group 2: Company Background - Rongsheng Petrochemical Co., Ltd. was established on September 15, 1995, with a registered capital of 9.989 billion RMB [2]

Core Viewpoint - The analysis from Zhaochuang Information indicates that during the current retail price adjustment cycle for refined oil (from October 27 to November 10), international crude oil prices have shown a narrow fluctuation and a downward trend in average values, leading to a significant decrease in the crude oil price change rate, which is expected to result in a retail price increase for refined oil, although the anticipated increase is narrowing [1] Group 1 - The crude oil price change rate as of November 6 is reported at 3.12%, suggesting an expected increase in gasoline and diesel prices by 135 yuan per ton, translating to an increase of 0.11 yuan per liter for 92 gasoline, 95 gasoline, and 0 diesel [1] - The price adjustment window is set to open on November 10 at 24:00, with one working day remaining before the adjustment [1] - The probability of a price increase for refined oil is high, but the expected increase margin is likely to further narrow before the adjustment [1]

Report Industry Investment Rating No information about the report industry investment rating is provided in the content. Core Viewpoints of the Report - The supply pressure of asphalt is expected to increase as refineries have recently increased production schedules [7]. - The overall demand for asphalt is lower than the historical average and is affected by the off - season, resulting in less - than - expected and sluggish demand [7]. - The cost support for asphalt is expected to weaken in the short term due to the decline in crude oil prices [7]. - The asphalt market is expected to experience narrow - range fluctuations in the short term, with the asphalt 2601 contract oscillating between 3085 - 3133 [7]. - The bullish factor is that the relatively high cost of crude oil provides some support, while the bearish factors include insufficient demand for high - priced goods and a downward trend in overall demand along with an increasing expectation of an economic recession in Europe and the United States [9][10]. Summary by Relevant Catalogs 1. Daily Views - **Supply Side**: In November 2025, the total planned production of asphalt from local refineries is 1.312 million tons, a month - on - month increase of 18.2% and a year - on - year decrease of 6.5%. The sample capacity utilization rate of domestic petroleum asphalt this week is 33.3174%, a month - on - month increase of 0.239 percentage points. The national sample enterprises' shipment is 331,300 tons, a month - on - month increase of 13.98%. The sample enterprises' output is 556,000 tons, a month - on - month increase of 0.72%. The estimated maintenance volume of sample enterprise equipment is 608,000 tons, a month - on - month decrease of 10.05%. Refineries have increased production this week, increasing supply pressure, and it may further increase next week [7]. - **Demand Side**: The开工 rate of heavy - traffic asphalt is 31.5%, a month - on - month increase of 0.01 percentage points; the开工 rate of building asphalt is 11.6%, a month - on - month increase of 0.17 percentage points; the开工 rate of modified asphalt is 15.0301%, a month - on - month increase of 2.94 percentage points; the开工 rate of road - modified asphalt is 33%, a month - on - month increase of 1.00 percentage point; the开工 rate of waterproofing membranes is 30%, unchanged from the previous month. Overall, the current demand is lower than the historical average [7]. - **Cost Side**: The daily processing profit of asphalt is - 594.72 yuan/ton, a month - on - month increase of 2.50%. The weekly delayed coking profit of Shandong local refineries is 594.5071 yuan/ton, a month - on - month decrease of 13.47%. The loss of asphalt processing has increased, and the profit difference between asphalt and delayed coking has decreased. With the decline of crude oil, the support is expected to weaken in the short term [7]. - **Basis**: On November 6th, the spot price in Shandong is 3100 yuan/ton, and the basis of the 01 contract is - 9 yuan/ton, with the spot at a discount to the futures, showing a neutral situation [7]. - **Inventory**: The social inventory is 937,000 tons, a month - on - month decrease of 6.76%; the in - plant inventory is 685,000 tons, a month - on - month decrease of 3.52%; the port diluted asphalt inventory is 200,000 tons, a month - on - month decrease of 33.33%. All types of inventories are in a continuous destocking state, showing a neutral situation [7]. - **Market**: The MA20 is downward, and the futures price of the 01 contract closes below the MA20, showing a bearish situation [7]. - **Main Position**: The main position is net short, with a shift from long to short, showing a bearish situation [7]. 2. Asphalt Futures Market - **Basis Trend**: The report presents the historical trends of the Shandong and East China asphalt basis from 2020 to 2025, which can help investors understand the relationship between spot and futures prices [17][19]. - **Spread Analysis** - **Main Contract Spread**: The report shows the historical trends of the 1 - 6 and 6 - 12 contract spreads of asphalt from 2020 to 2025, which can be used for spread trading analysis [22]. - **Asphalt - Crude Oil Price Trend**: It shows the historical price trends of asphalt, Brent crude oil, and West Texas Intermediate (WTI) crude oil from 2020 to 2025, helping to analyze the relationship between asphalt and crude oil prices [25]. - **Crude Oil Crack Spread**: It presents the historical crack spreads of asphalt against SC, WTI, and Brent crude oils from 2020 to 2025, which is useful for analyzing the profitability of asphalt refining [28][29]. - **Asphalt, Crude Oil, and Fuel Oil Price Ratio Trend**: It shows the historical price ratio trends of asphalt against SC crude oil and fuel oil from 2020 to 2025, which can assist in cross - commodity price analysis [33]. 3. Asphalt Spot Market - **Regional Market Price Trends**: The report shows the historical price trend of Shandong heavy - traffic asphalt from 2020 to 2025, reflecting the price changes in the local asphalt market [35]. 4. Asphalt Fundamental Analysis - **Profit Analysis** - **Asphalt Profit**: It shows the historical profit trend of asphalt from 2019 to 2025, helping to understand the profitability of asphalt production [38]. - **Coking - Asphalt Profit Spread Trend**: It presents the historical spread trend between coking and asphalt profits from 2020 to 2025, which can be used to analyze the profit differences between different production processes [42]. - **Supply Side** - **Shipment Volume**: It shows the historical weekly shipment volume of asphalt small - sample enterprises from 2020 to 2025, which can reflect the supply situation in the market [44]. - **Diluted Asphalt Port Inventory**: It presents the historical domestic diluted asphalt port inventory from 2021 to 2025, which is important for analyzing the supply of raw materials [46]. - **Production Volume**: It shows the historical weekly and monthly production volumes of asphalt from 2019 to 2025, helping to understand the overall supply capacity [49]. - **Marine Oil Price and Venezuelan Crude Oil Monthly Production Trend**: It presents the historical price trend of Marine oil and the monthly production trend of Venezuelan crude oil from 2018 to 2025, which can affect the cost and supply of asphalt [53]. - **Local Refinery Asphalt Production**: It shows the historical production volume of local refinery asphalt from 2019 to 2025, which reflects the production contribution of local refineries [55]. - **Capacity Utilization Rate**: It presents the historical weekly capacity utilization rate of asphalt from 2021 to 2025, which can reflect the operating efficiency of the production side [58]. - **Maintenance Loss Estimation**: It shows the historical estimated maintenance loss of asphalt from 2018 to 2025, which can affect the supply in the market [60]. - **Inventory** - **Exchange Warehouse Receipt**: It presents the historical trends of exchange warehouse receipts (total, social inventory, and in - plant inventory) of asphalt from 2019 to 2025, which can reflect the inventory situation in the futures market [63]. - **Social Inventory and In - Plant Inventory**: It shows the historical trends of social inventory (70 samples) and in - plant inventory (54 samples) of asphalt from 2022 to 2025, which are important indicators for analyzing the overall inventory situation [67]. - **In - Plant Inventory Inventory Ratio**: It presents the historical in - plant inventory inventory ratio of asphalt from 2018 to 2025, which can reflect the inventory management efficiency of enterprises [70]. - **Import and Export Situation** - **Export and Import Trends**: It shows the historical export and import trends of asphalt from 2019 to 2025, which can affect the domestic supply and demand balance [73]. - **Korean Asphalt Import Spread Trend**: It presents the historical spread trend of Korean asphalt imports from 2020 to 2025, which can be used for import cost analysis [76]. - **Demand Side** - **Petroleum Coke Production**: It shows the historical production volume of petroleum coke from 2019 to 2025, which can be related to the demand for asphalt [79]. - **Apparent Consumption**: It presents the historical apparent consumption of asphalt from 2019 to 2025, which reflects the overall market demand [82]. - **Downstream Demand** - **Highway Construction and Fixed - Asset Investment in Transportation**: It shows the historical trends of highway construction and fixed - asset investment in transportation from 2020 to 2025, which can affect the demand for asphalt [85]. - **New Local Special Bonds and Infrastructure Investment Completion**: It presents the historical trends of new local special bonds and infrastructure investment completion from 2019 to 2025, which are related to the demand for asphalt in infrastructure construction [86]. - **Downstream Machinery Demand**: It shows the historical sales trends of asphalt concrete pavers, domestic excavators, and road rollers, as well as the monthly working hours of excavators from 2019 to 2025, which can reflect the downstream construction demand [90][92]. - **Asphalt Operating Rate** - **Heavy - Traffic Asphalt Operating Rate**: It presents the historical operating rate of heavy - traffic asphalt from 2019 to 2025, which can reflect the production and demand situation of heavy - traffic asphalt [94]. - **Operating Rate by Use**: It shows the historical operating rates of building asphalt and modified asphalt from 2019 to 2025, which can reflect the demand in different application scenarios [97]. - **Downstream Operating Conditions**: It presents the historical operating rates of shoe - material SBS - modified asphalt, road - modified asphalt, and waterproofing membrane - modified asphalt from 2019 to 2025, which can reflect the downstream demand for asphalt [99][101]. - **Supply - Demand Balance Sheet**: It provides the monthly asphalt supply - demand balance sheet from January 2024 to October 2025, including production, import, export, inventory, and downstream demand, which can help comprehensively analyze the supply - demand relationship in the asphalt market [104].

Core Viewpoint - The company has significantly increased the yield of transformer oil base oil through technical optimizations and operational improvements, responding to the rising market demand driven by accelerated domestic power infrastructure construction [1][2]. Group 1: Production Enhancements - The yield of transformer oil components from the first set of atmospheric distillation units has increased from 10.5% to approximately 12%, enhancing raw material utilization [1]. - The hydrogenation treatment unit has doubled its output of transformer oil base oil since July, with the product yield rising from 8% to around 20%, achieving a historical high [2]. Group 2: Technical Innovations - The company has implemented a series of technical measures, including optimizing operational parameters and introducing a new refining process to efficiently recover previously underutilized transformer oil components [1]. - The second set of precision distillation units focuses on controlling raw material properties and optimizing operational processes to maximize the utilization of effective components during production [1]. Group 3: Market Impact - The company has established a normalized production increase model for transformer oil base oil, ensuring stable production capabilities across the entire supply chain from raw material assurance to product delivery [2]. - The continuous supply of qualified transformer oil base oil is filling market gaps and providing solid energy support for domestic power infrastructure construction, emphasizing the company's commitment to "increased production without quality degradation" [2].