Investment Rating - Industry investment rating: Stronger than the market, maintained [1] Core Views - Focus: OPEC+ plans to increase production by 547,000 barrels per day in September, leading to a rise in US crude oil and gasoline inventories, resulting in a decline in energy prices and weaker performance in the petrochemical sector [2] - Review: The petrochemical index closed at 2283.32 points, down 0.05% from the previous week, with oilfield services showing the best performance within the sector, increasing by 3.77% [3][5] - Crude Oil: Energy prices are declining, with US crude oil inventories rising and mixed performance in refined oil inventories [6][11] - Polyester: Prices of polyester filament are stable with an upward trend, and inventory days for Jiangsu and Zhejiang weaving machines are decreasing, indicating an increase in operating rates [15][21] - Olefins: Sample prices for polyolefins remain stable, while inventories are increasing [22][25] Summary by Sections Crude Oil - Energy prices are on a downward trend, with Brent crude futures and TTF natural gas futures closing at $66.33 per barrel and €30.92 per megawatt-hour, down 0.8% and 4.0% respectively from the previous week [8] - US crude oil and petroleum product inventories (excluding strategic reserves) stand at 1,267,347 thousand barrels, an increase of 7,522 thousand barrels from the previous period [12] Polyester - The prices of polyester filament (POY, DTY, FDY) are reported at 6,750, 7,950, and 7,100 yuan per ton, with price differentials increasing by 184, 154, and 254 yuan per ton respectively compared to last week [16] - Inventory days for polyester filament in Jiangsu and Zhejiang have decreased, with FDY, DTY, and POY inventory days at 23.3, 28.2, and 16.1 days respectively [21] Olefins - Sample prices for polyethylene and polypropylene are reported at 7,830 and 8,050 yuan per ton, with a slight increase of 0.51% and no change respectively from the previous week [25] - The total petrochemical inventory for polyolefins is 770,000 tons, an increase of 20,000 tons from the previous week [25]

Refining Projects - Domestic refining project price spread this week is 2601 CNY/ton, up by 97 CNY/ton (4% week-on-week) [2] - International refining project price spread this week is 1110 CNY/ton, up by 11 CNY/ton (1% week-on-week) [2] Polyester Sector - Average prices for POY, FDY, and DTY are 6729, 7043, and 7929 CNY/ton respectively, with week-on-week changes of +4, +32, and -4 CNY/ton [2] - Weekly profits for POY, FDY, and DTY are 16, -40, and -50 CNY/ton respectively, with week-on-week changes of -2, +17, and -6 CNY/ton [2] - Inventory days for POY, FDY, and DTY are 16.1, 23.3, and 28.2 days respectively, with week-on-week changes of -3.6, -2.4, and -1.8 days [2] - The operating rate for polyester filament is 90.6%, down by 0.6 percentage points week-on-week [2] Oil and Chemical Sector - PX average price this week is 832.1 USD/ton, down by 6.6 USD/ton, with a price spread against crude oil of 347.9 USD/ton, up by 3.3 USD/ton [2] - Domestic gasoline and diesel prices have decreased this week [2] - The operating rate for PX is 82.9%, up by 0.6 percentage points week-on-week [2] Risks - Potential delays in project implementation [2] - Slower-than-expected recovery in demand due to macroeconomic slowdown [2] - Geopolitical risks leading to fluctuations in raw material prices [2]

Investment Rating - The industry investment rating is "Positive" as the industry index is expected to outperform the benchmark [137]. Core Insights - The report highlights that mainstream filament enterprises are reducing production, while downstream concentrated purchasing is driving inventory reduction [2]. - The Brent crude oil weekly average price as of August 15, 2025, was $66.33 per barrel, reflecting a decrease of 2.00% [2][3]. - The domestic key refining project price difference was 2400.36 CNY/ton, with a week-on-week increase of 27.32 CNY/ton (+1.15%) [2][3]. - The report indicates a mixed performance in the chemical sector, with some products experiencing price increases due to supply constraints [2]. Summary by Sections Refining Sector - Market sentiment is cautious due to geopolitical events and rising U.S. oil production, leading to a slight decline in international oil prices [2][13]. - Domestic refined oil prices are fluctuating, with diesel, gasoline, and aviation kerosene averaging 7015.71 CNY/ton, 8122.57 CNY/ton, and 5978.29 CNY/ton respectively [13]. Chemical Sector - The report notes that the cost support for chemicals is weak, leading to varied price movements, but overall price differences are expanding [2][40]. - Polyethylene prices have seen a slight increase, with LDPE, LLDPE, and HDPE averaging 9535.71 CNY/ton, 7314.00 CNY/ton, and 8000.00 CNY/ton respectively [48]. Polyester Sector - The polyester industry chain is experiencing stable prices, with significant inventory reduction in filament due to production cuts and concentrated purchasing [2][99]. - The average price for polyester filament is reported at 6717.86 CNY/ton for POY, 7060.71 CNY/ton for FDY, and 7928.57 CNY/ton for DTY [99]. Market Performance of Major Refining Companies - As of August 15, 2025, the stock price changes for six major refining companies were as follows: Rongsheng Petrochemical (+0.88%), Hengli Petrochemical (-0.59%), Dongfang Shenghong (+0.34%), Hengyi Petrochemical (+2.35%), Tongkun Co. (+6.16%), and Xin Fengming (+8.70%) [124]. - Over the past month, the stock price changes were: Rongsheng Petrochemical (+7.21%), Hengli Petrochemical (+8.36%), Dongfang Shenghong (+3.24%), Hengyi Petrochemical (+3.22%), Tongkun Co. (+17.49%), and Xin Fengming (+21.50%) [124].

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]