Core Viewpoint - The Chinese Nitrogen Fertilizer Industry Association has issued an initiative to stabilize the domestic fertilizer market and ensure agricultural production, in response to speculative capital driving up fertilizer prices due to information asymmetry and market expectations since April 30 [1] Group 1: Price Adjustments - Key nitrogen fertilizer companies are urged to reduce urea ex-factory prices within three days to not exceed the levels prior to May 6, with a maximum increase of 100 yuan per ton compared to the end of April prices [1] - Non-compliance with this self-regulatory initiative may result in suspension of membership services and other policy consequences for the offending companies [1] Group 2: Industry Self-Regulation - The association emphasizes the need for industry self-regulation to ensure orderly and healthy urea exports, discouraging low-price competition that undermines the market [1] - Actions that contribute to "involution" and aggressive price competition for international market share will not be recognized by the association [1] Group 3: Sustainable Development - The collective effort is aimed at achieving sustainable and healthy development within the nitrogen fertilizer industry [1]

Core Viewpoint - The company Huayu has been recognized as the "Water Efficiency Leader" in the coal-to-methanol industry for 2024 by the China Fertilizer Industry Association, marking its fourth consecutive year of receiving this honor [1] Group 1: Water Management Practices - Since its inception, the company has prioritized water conservation management, achieving a water intake of 6.98 cubic meters per ton of product and a water reuse rate exceeding 98% [1] - The company employs advanced coal chemical technologies to control water usage from the source, including steam condensate recovery and high-efficiency cooling systems [2] - A comprehensive water management system has been established, including a water consumption plan and monitoring systems to prevent leaks and optimize water use [3] Group 2: Wastewater Treatment and Zero Discharge - The company has implemented advanced technologies for zero wastewater discharge, resulting in a wastewater discharge of only 1.04 cubic meters per ton of product for 2024, with significant improvements in water reuse and efficiency [4] - Investments of 134 million yuan have been made in wastewater treatment projects, achieving a 43.9% reduction in wastewater discharge, a 63.4% reduction in COD, and a 49.2% reduction in ammonia nitrogen [4] - The company has established a scientific water conservation planning and responsibility system to enhance deep wastewater recycling and smart manufacturing [4]

Investment Rating - The report maintains a recommendation for the chemical industry, indicating a positive outlook for the sector [6]. Core Viewpoints - The report highlights the significant price increases in active dyes (+10%) and PTA (+3.17%), suggesting potential investment opportunities in companies related to these products [4][20]. - It recommends focusing on companies like Huaitong Co., which is expected to benefit from the application of modified plastics in the robotics sector, and Runtong Co., which may gain from the rising prices of active dyes [5]. Industry Performance - In the first week of May, the chemical sector (Shenwan) experienced a decline of 0.50%, slightly underperforming the Shanghai A-share index, which fell by 0.49% [2][12]. - The dynamic PE ratio for the chemical sector stands at 24.05, which is lower than the average PE of 11.90 since 2015 [2][12]. Sub-industry Trends - Among the 15 sub-industries, five saw increases, with daily chemical products leading at +8.85%, while five sub-industries experienced declines, with synthetic leather dropping by -8.89% [3][15]. Price and Spread Trends - The report lists the top five products with the highest weekly price increases: active dyes (+10%), PTA (+3.17%), and butadiene (+2.86%) [4][20]. - The report also notes significant changes in price spreads, with the melamine spread increasing by +73.47% and the PTA spread by +39.52% [4][36]. Inventory Changes - Key products with notable inventory changes include potassium chloride (-17.88%) and epoxy propane (-8.96%), indicating shifts in supply dynamics [5][56].