Core Viewpoint - The restructuring between Sinopec and China National Aviation Fuel Corporation aims to streamline the aviation fuel supply chain from upstream production to downstream refueling, accelerating the industrialization of Sustainable Aviation Fuel (SAF) in China, which is expected to benefit domestic biodiesel producers [1][4]. Group 1: Restructuring Details - Sinopec and China National Aviation Fuel Corporation are undergoing a restructuring approved by the State Council, marking a significant move in the integration of state-owned enterprises [2]. - This merger combines the strengths of Sinopec, the world's largest refining company, and China National Aviation Fuel, Asia's largest aviation fuel service provider, enhancing the competitiveness of China's aviation fuel industry [3]. Group 2: SAF Market Dynamics - The global demand for SAF is increasing, driven by regulations such as the EU's ReFuelEU, which mandates that by 2025, 2% of aviation fuel used at EU airports must be SAF, with targets of 6%, 20%, and 70% by 2030, 2035, and 2050 respectively [5]. - In China, a pilot program for SAF blending will begin in March 2025, with an estimated annual SAF blending volume of 32,000 tons from four major airports, contributing to the growing domestic demand [5]. Group 3: Investment Opportunities - The rising demand and prices for SAF are expected to tighten the supply of raw materials, particularly waste oils, which have a theoretical annual production capacity of 12 million tons in China, with current collection at about 5 million tons [6]. - As the SAF industry accelerates, the focus of supply chain challenges will shift from SAF availability to raw material supply, prompting a comprehensive recommendation for investment in the waste oil-SAF full industry chain [6].

Report Information - Report Type: Fixed Income Report - Release Time: January 13, 2026 - Analysts: Liang Weichao (SAC Registration No.: S1340523070001), Cui Chao (SAC Registration No.: S1340523120001) [1][2] Investment Rating - The provided content does not mention the report's industry investment rating. Core Viewpoints - High - frequency economic data focuses on: production - end heat differentiation with increased coke oven, blast furnace, and PX operating rates and increased rebar production, but decreased asphalt and automobile tire operating rates; decreased commercial housing transactions and land supply areas; overall price recovery with rising energy and metal prices (copper prices hitting new highs) and falling agricultural product prices (except for rising pork prices). Short - term focus on the implementation of fiscal and monetary coordinated policies [3][35] Section Summaries Production - Steel: In the week of January 9, coke oven capacity utilization increased by 0.87 pct, blast furnace operating rate increased by 0.37 pct, and rebar production increased by 8.56 tons. - Petroleum Asphalt: In the week of January 7, the operating rate continued to decline by 2.0 pct at a low level. - Chemicals: On January 9, the PX operating rate increased by 1.67 pct, and the PTA operating rate remained flat. - Automobile Tires: In the week of January 8, the all - steel tire operating rate decreased by 0.13 pct, and the semi - steel tire operating rate decreased by 2.36 pct [4][13][14] Demand - Real Estate: In the week of January 11, commercial housing transaction area decreased, inventory - to - sales ratio increased, land supply area decreased, and residential land transaction premium rate increased. - Movie Box Office: In the week of January 4, it increased by 515 million yuan compared with the previous week. - Automobile: In the week of December 31, the daily average retail sales of automobile manufacturers increased by 33,000 vehicles, and the daily average wholesale sales increased by 91,000 vehicles. - Shipping Freight Rates: In the week of January 9, the SCFI index decreased by 0.54%, the CCFI index increased by 4.21%, and the BDI index dropped significantly by 10.31% at a high level [5][17][21][24] Prices - Energy: On January 9, Brent crude oil prices rose by 4.26% to $63.34 per barrel, and coking coal futures prices rose by 6.5% to 1,188 yuan per ton. - Metals: On January 9, LME copper, aluminum, and zinc futures prices changed by +4.31%, +3.81%, and +0.85% respectively, and domestic rebar futures prices rose by 0.61%. - Agricultural Products: On January 9, the overall price of agricultural products declined, with the 200 - index of agricultural product wholesale prices dropping by 0.56%. Pork, eggs, vegetables, and fruits prices changed by +1.18%, +2.03%, -1.43%, and -0.63% respectively compared with the previous week [6][26][28] Logistics - Subway Passenger Volume: On January 11, the seven - day moving average of subway passenger volume in Beijing and Shanghai increased. - Flight Volume: On January 11, the seven - day moving average of domestic and international flight volumes decreased. - Urban Traffic: On January 11, the seven - day moving average of the peak congestion index in first - tier cities increased [7][31][33]

Core Viewpoint - ExxonMobil Chemical has been granted a patent for a method and system for improving hydrocarbons, with the announcement number CN116806254B and an application date of January 2022 [1] Group 1 - The patent focuses on enhancing the quality of hydrocarbons, indicating potential advancements in chemical processing technology [1] - The patent was officially granted by the National Intellectual Property Administration, showcasing the company's commitment to innovation in the chemical sector [1]

Group 1: Investment Ratings - High - sulfur fuel oil: Short - term neutral, slightly bearish [3] - Low - sulfur fuel oil: Short - term neutral, slightly bearish [3] - Cross - variety: None [3] - Cross - period: None [3] - Spot - futures: None [3] - Options: None [3] Group 2: Core Views - The market of high - sulfur fuel oil in the US Gulf has weakened, and the price spread between high - and low - sulfur fuel oils has rebounded. The main contract of SHFE fuel oil futures closed down 1.32% at 2,461 yuan/ton, while the main contract of INE low - sulfur fuel oil futures closed up 0.93% at 3,026 yuan/ton [1] - With the escalating situation in Iran, the short - term oil price trend is volatile and bullish, but it is greatly affected by news, and the market may fluctuate repeatedly. The fundamentals of fuel oil have both long and short factors, with limited overall contradictions [2] - The large inflow of heavy oil from Venezuela to the US has increased the production of high - sulfur fuel oil in US Gulf refineries, leading to a significant decline in crack spreads, a wider price spread between the East and West regions of fuel oil, and potential growth in cargo inflows. The Singapore and domestic markets may face potential resistance. After the decline in crack spreads, refinery demand is expected to be boosted, providing support to the market. If the conflict in the Iranian region escalates, high - sulfur fuel oil supply may face a downward risk [2] - For low - sulfur fuel oil, the overall contradictions are currently limited. With the changes in the refinery operations in Nigeria and Kuwait, local supply may increase, and market pressure may rise. In the long run, the contradictions of large surplus capacity and the replacement of the ship - fuel demand share will continue to be a resistance factor, but the high premium of gasoline and diesel will continue to divert low - sulfur oil components, providing some support to the market [2] Group 3: Figures and Data - Figures related to Singapore fuel oil: Singapore high - sulfur 380 fuel oil spot price, Singapore low - sulfur fuel oil spot price, Singapore high - sulfur fuel oil swap near - month contract, Singapore low - sulfur fuel oil swap near - month contract, Singapore high - sulfur fuel oil near - month spread, Singapore low - sulfur fuel oil near - month spread [4] - Figures related to fuel oil FU futures: Main contract closing price, index closing price, near - month contract closing price, near - month contract spread, main contract trading volume and open interest, total trading volume and open interest [4] - Figures related to low - sulfur fuel oil LU futures: Main contract closing price, index closing price, near - month contract price, near - month spread, main contract trading volume and open interest, total trading volume and open interest [4]

Core Viewpoint - The asphalt market is experiencing a price surge due to international supply disruptions, but this is expected to be temporary as demand remains weak and inventory levels are high [1][4]. Group 1: Price Movements - In late December 2025, the average ex-factory price of 70 asphalt in Shandong was 2900 yuan per ton, which rose to a peak of 3150 yuan by January 5, 2026, marking a significant increase [2]. - The futures market also reflected this trend, with the asphalt 2602 contract rising by 4.4% within a week [2]. - The price fluctuations are linked to a significant reduction in Venezuelan crude oil exports, which have decreased sharply, impacting regional raw material availability [2][3]. Group 2: Supply and Demand Dynamics - The asphalt market is currently constrained by weak demand and high inventory levels, with a reported asphalt production of 553,000 tons in the last week before New Year's, a 14% increase week-on-week [4]. - The operating rate for modified asphalt production was only 20%, continuing a four-week decline, while Shandong's refineries reported a 19% increase in shipments to 148,600 tons [4]. - Social and factory inventories reached 666,000 tons, up 4% week-on-week, indicating a weak fundamental structure in the off-season [4]. Group 3: Future Outlook - Domestic asphalt consumption is projected to reach 30.78 million tons in 2025, an increase of 1.88 million tons or 6.49% year-on-year [5]. - However, the real estate market is expected to slow down, and infrastructure investments will focus more on quality and efficiency, leading to a decline in overall asphalt demand [5]. - The total asphalt supply for the year is estimated at 31.43 million tons, with a supply-demand gap of approximately 880,000 tons, indicating a trend of oversupply [5][6].

Core Viewpoint - Jingmen Petrochemical has successfully delivered its first batch of microcrystalline wax transported in liquid containers to the European market, marking a significant shift from its previous solid-state export method [1] Group 1: Transportation Innovation - The company has implemented liquid container transportation to enhance its international market reach, reducing intermediate repackaging steps and improving quality control precision [1] - This new transportation method significantly lowers costs compared to traditional solid packaging, providing a competitive advantage [1] Group 2: Market Expansion Strategy - Jingmen Petrochemical is accelerating the development of small packaging for microcrystalline wax to meet diverse purchasing needs of downstream customers [1] - The company aims to further expand its international market presence through this initiative [1]

荆门石化针对渣油加氢、催化裂化等关键装置开展优化攻关，从源头提升优质汽油组分收率;同时持续 优化汽油调和方案，精准把控关键质量指标，确保产品质量优于国家标准，最大限度提高95号汽油产出 率。此外，该公司建立精细化客户数据库，实施"一省一策"差异化营销;完善快速响应机制，针对不同 客户群体设计差异化权益组合，深化"炼销一体"协同机制，确保资源高效配置;统筹仓储与运力资源， 灵活调配管输、铁路、公路等多种出厂方式，确保高产情况下的高效交付。 中化新网讯 2025年，荆门石化95号高标号汽油产销量首次达到50.03万吨，比上年提高7.5%，创历史新 高。 ...

Group 1 - The RCEP has provided continuous policy dividends over the past four years, injecting new development momentum into China's petrochemical industry and promoting a transition from scale expansion to quality improvement [1] - From January to November 2025, the trade volume of oil and chemical products between China and other RCEP countries reached $239.3 billion, with imports at $140.7 billion and exports at $98.6 billion [1] - The petrochemical trade volume within the RCEP region reached $292.8 billion in 2022, accounting for 27.8% of China's total petrochemical foreign trade, and increased to 28.3% in 2024 [1] Group 2 - China, as the world's largest energy consumer, relies heavily on imports, with RCEP countries like Australia and ASEAN nations being significant energy suppliers [2] - Over 80% of China's imports from RCEP countries consist of energy resources and high-end chemicals [2] - The number of RCEP origin certificates declared by companies like Bettery New Materials Group increased to 207 in 2025, with a total value of 370 million yuan, resulting in a tax reduction of approximately 7.3 million yuan [2] Group 3 - The lithium battery sector exemplifies the integration of regional production networks, with China's exports of lithium battery products to ASEAN rising from $3.505 billion in 2021 to $5.511 billion in 2024, reflecting an annual growth rate of 16.28% [3] - In the first eleven months of 2025, the export value reached a record high of $6.828 billion, showcasing the collaborative effects of the regional production network [3] - The issuance of RCEP origin certificates by Hangzhou Customs increased from 52,800 in 2022 to 87,100 in the first eleven months of 2025, benefiting industries like plastics and chemicals [3] Group 4 - Experts suggest that China should leverage RCEP as a strategic pivot to optimize energy layout and export structure, deepen regional technological cooperation, and enhance the resilience and competitiveness of the regional industrial chain [4]

Core Insights - The China Petroleum and Chemical Industry Index has seen a strong increase of 1.49% as of January 13, 2026, with notable gains from stocks such as Kasei Biotech (up 11.71%) and Xingfa Group (up 8.42%) [1] - The Petrochemical ETF (159731) has risen by 1.17%, reaching a latest price of 0.95 yuan, and has experienced a total net inflow of 57.72 million yuan over the past four days [1] - The Petrochemical ETF has achieved a net value increase of 50% over the past two years, with a maximum monthly return of 15.86% since its inception [1] Fund Performance - The Petrochemical ETF has a current scale of 307 million yuan, marking a one-year high [1] - The longest consecutive monthly gain for the ETF was 8 months, with a maximum cumulative increase of 41.6% [1] - The average return during the months of increase is 5.25%, and the ETF has outperformed its benchmark with an annualized excess return of 2.19% over the past year [1] Top Holdings - As of December 31, 2025, the top ten weighted stocks in the China Petroleum and Chemical Industry Index account for 56.73% of the index, including Wanhua Chemical, China Petroleum, and China Petrochemical [1] - The top ten stocks by weight are: - Wanhua Chemical (10.47%) - China Petroleum (7.63%) - Salt Lake Co. (6.44%) - China Petrochemical (6.44%) - CNOOC (6.44%) [3]

Report Summary 1. Report Industry Investment Rating No relevant information provided. 2. Core View of the Report - Polyolefins have been boosted since the beginning of the year, but the fundamental support is not solid. The supply pressure of polypropylene has eased due to more temporary maintenance, while the overall supply pressure of plastics has slightly increased. The demand for mulch film has driven a slight increase in the start - up of agricultural film, and the start - up of other sectors is basically stable. The replenishment of some downstream factories has slightly increased, but the increase is limited. Enterprises' resistance to high prices restricts the price increase. In the short term, international oil prices have risen due to the Iranian protest activities threatening supply, but overseas geopolitical conflicts cannot change the oversupply pattern of crude oil. Polyolefins are expected to rise first and then fall driven by supply recovery, demand entering the off - season inventory digestion cycle [4]. 3. Summary by Relevant Catalogs 3.1 Market Review and Outlook - **Plastic Futures**: L2605 opened lower, fluctuated upward during the session, and closed up at 6737 yuan/ton, up 90 yuan/ton (1.35%), with a trading volume of 500,000 lots and a decrease of 509 lots in positions to 490,780 lots. - **PP Futures**: PP2605 closed at 6560 yuan/ton, up 68 yuan, with a gain of 1.05%, and a decrease of 614 lots in positions to 502,700 lots [3][4]. 3.2 Industry News - **Inventory**: On January 12, 2026, the inventory level of major producers was 575,000 tons, a decrease of 35,000 tons (5.74%) from the previous working day, compared with 560,000 tons in the same period last year. - **PE Market**: Most PE market prices rose. Linear futures opened higher and fluctuated. The market trading atmosphere was average. As some ex - factory prices were raised, traders followed suit and raised their quotes, and downstream buyers were cautious in purchasing. The LLDPE prices in North China, East China, and South China were 6430 - 6600 yuan/ton, 6450 - 6800 yuan/ton, and 6600 - 6850 yuan/ton respectively. - **Propylene Market**: The mainstream price of the Shandong propylene market was temporarily referred to as 5770 - 5820 yuan/ton, unchanged from the previous working day. The overall shipment of production enterprises was smooth, the propylene offer was adjusted steadily, and there was still a premium situation in the actual order auction of some enterprises. The purchasing enthusiasm of downstream factories remained high, and the overall market trading atmosphere was good. - **PP Market**: The PP market showed an obvious upward trend, and the price center of some markets rose by 50 - 70 yuan/ton. Traders' quotes followed the upward trend significantly, and the market center rose. Downstream factories were cautious in purchasing and still resisted high - priced goods, resulting in poor market transactions. The regional price ranges were 6130 - 6250 yuan/ton in North China, 6230 - 6400 yuan/ton in East China, and 6150 - 6450 yuan/ton in South China [5][6]. 3.3 Data Overview - The report presents multiple data charts, including L basis, PP basis, L - PP spread, settlement price of the main crude oil futures contract, two - oil inventory, and two - oil inventory year - on - year increase/decrease rate, with data sources from Wind and Zhuochuang Information [8][10][11].