Core Viewpoint - The increasing adoption of futures tools by petrochemical companies in China is enhancing price risk management across the industry chain, leading to cost reduction and improved competitiveness for both upstream and downstream partners [1][2]. Group 1: Industry Adoption of Futures Tools - The petrochemical industry is increasingly utilizing futures tools to manage price risks amid volatile raw material prices, creating a collaborative risk defense system across the supply chain [2][3]. - Long-established companies like Longchang Group have developed a mature futures and spot trading model, which effectively manages operational risks and supports downstream partners in optimizing procurement costs [2][4]. Group 2: Risk Management Strategies - Longchang Group employs hedging strategies to reduce inventory exposure risks and mitigate operational risks from raw material price fluctuations [2][5]. - The company dynamically manages exposure through a "rolling inventory" concept, continuously switching different inventory resources to lower costs and enhance profitability without increasing exposure [2][5]. Group 3: Downstream Support and Cost Optimization - Futures and options tools are helping downstream companies optimize costs and improve efficiency, allowing them to better serve their end customers [3][6]. - Longchang Group's unique combination of futures and spot trading provides differentiated risk management services throughout the entire business chain, enhancing customer relationships and loyalty [5][8]. Group 4: Regional Economic Development - The use of futures tools is significantly contributing to the collaborative development of the petrochemical industry and supporting the economic transformation of the northwest region of China [9][11]. - The futures market provides essential price information and risk management capabilities, enabling companies in the northwest to stabilize their operations and improve their competitive edge [11][12]. Group 5: Training and Knowledge Enhancement - Longchang Group is actively involved in training initiatives to enhance the understanding and application of futures tools among regional enterprises, addressing the knowledge gap compared to coastal regions [10][11]. - The company aims to promote practical experiences in financial derivatives usage, helping businesses develop tailored risk management models that align with their operational realities [12].

1. Report Industry Investment Rating No relevant content provided. 2. Core View of the Report The PP supply - demand pattern remains unchanged with no further macro - level positive factors. The spot trading atmosphere is light, and it is expected that PP will fluctuate weakly in the near term. Due to the possibility of new PP capacity coming online this year and the gradual end of the peak season for agricultural films, the L - PP spread is expected to narrow [1]. 3. Summary by Relevant Catalogs 3.1 Market Analysis - As of the week of December 12, the PP downstream operating rate increased by 0.06 percentage points to 53.99% week - on - week, at a relatively low level compared to the same period in previous years. However, the operating rate of the plastic weaving industry, the main downstream of the drawstring, decreased by 0.04 percentage points to 44.06% week - on - week, and the plastic weaving orders continued to decline slightly, slightly lower than the same period last year [1]. - On December 12, the restart of maintenance devices such as the single - line of Zhong'an United drove the PP enterprise operating rate up to around 85%, at a neutral level, and the production ratio of standard drawstring rose to around 28% [1][4]. - Recently, the de - stocking of petrochemicals has been slow, and the current petrochemical inventory is at a relatively high level compared to the same period in recent years. The cost of crude oil has decreased as some previously malfunctioning oil fields in Iraq resumed production, the US is still actively promoting peace talks between Russia and Ukraine, and the crack spread of refined oil in Europe and the US has continued to decline [1]. - There is new production capacity of 400,000 tons/year from PetroChina Guangxi Petrochemical put into operation in mid - October, and the number of maintenance devices has slightly decreased recently. The downstream has entered the end of the peak season, orders for plastic weaving and other products have started to decline, the price of BOPP film has dropped again, and there is a lack of large - scale centralized procurement in the market, which has limited support for the market [1]. 3.2 Futures and Spot Market Conditions - In the futures market, the PP2601 contract decreased in an oscillatory manner with a position reduction. The lowest price was 6,110 yuan/ton, the highest price was 6,186 yuan/ton, and it finally closed at 6,129 yuan/ton, below the 20 - day moving average, with a decline of 1.18%. The open interest decreased by 58,109 lots to 293,184 lots [2]. - In the spot market, most of the PP spot prices in various regions declined. The drawstring was quoted at 5,970 - 6,330 yuan/ton [3]. 3.3 Fundamental Tracking - On the supply side, on December 12, the restart of maintenance devices such as the single - line of Zhong'an United drove the PP enterprise operating rate up to around 85%, at a neutral level [4]. - On the demand side, as of the week of December 12, the PP downstream operating rate increased by 0.06 percentage points to 53.99% week - on - week, at a relatively low level compared to the same period in previous years. However, the operating rate of the plastic weaving industry, the main downstream of the drawstring, decreased by 0.04 percentage points to 44.06% week - on - week, and the plastic weaving orders continued to decline slightly, slightly lower than the same period last year [4]. - On Friday, the early petrochemical inventory decreased by 10,000 tons week - on - week to 680,000 tons, 60,000 tons higher than the same period last year. Recently, the de - stocking of petrochemicals has been slow, and the current petrochemical inventory is at a relatively high level compared to the same period in recent years [4]. 3.4 Raw Material End Information The Brent crude oil 02 contract dropped below $62 per barrel, and the CFR propylene price in China remained flat at $745 per ton week - on - week [6].

Report Industry Investment Rating - Not provided Core Viewpoints - The plastic supply and demand pattern remains unchanged, the trading atmosphere is weak, and there is no further macro - level positive news. It is expected that plastics will fluctuate weakly in the near future. Due to the possible new plastic production capacity and the gradual exit of the agricultural film peak season, the L - PP spread is expected to decline [1] Summary by Directory Market Analysis - On December 12, the number of overhauled plastic devices changed little, and the plastic operating rate remained at around 90%, at a neutral level. The PE downstream operating rate decreased by 0.76 percentage points to 43.00% week - on - week. The agricultural film is gradually exiting the peak season, with orders and raw material inventory decreasing. Packaging film orders also declined slightly. The overall PE downstream operating rate is at a relatively low level in recent years. Petrochemical inventory is at a relatively high level in recent years, and the destocking is slow. The cost of crude oil has decreased. New production capacity has been put into operation, and the plastic operating rate has increased slightly. It is expected that the downstream operating rate will decline, and the plastic will fluctuate weakly [1] Futures and Spot Market Conditions - Futures: The plastic 2605 contract increased in positions and declined in a volatile manner, with a closing price of 6486 yuan/ton, a decline of 1.83%, and the position increased by 28241 lots to 479677 lots [2] - Spot: Most PE spot markets declined, with price changes ranging from - 150 to + 0 yuan/ton. LLDPE was reported at 6400 - 6620 yuan/ton, LDPE at 8050 - 8830 yuan/ton, and HDPE at 6770 - 7420 yuan/ton [3] Fundamental Tracking - Supply: On December 12, the number of overhauled devices changed little, and the plastic operating rate remained at around 90%, at a neutral level [4] - Demand: As of the week of December 12, the PE downstream operating rate decreased by 0.76 percentage points to 43.00% week - on - week. The agricultural film is gradually exiting the peak season, with orders and raw material inventory decreasing. Packaging film orders also declined slightly. The overall PE downstream operating rate is at a relatively low level in recent years [4] - Inventory: The petrochemical early - morning inventory on Friday decreased by 10,000 tons to 680,000 tons, 60,000 tons higher than the same period last year. The petrochemical destocking is slow, and the inventory is at a relatively high level in recent years [4] - Raw materials: The Brent crude oil 02 contract fell below $62/barrel. The Northeast Asian ethylene price remained flat at $725/ton week - on - week, and the Southeast Asian ethylene price remained flat at $745/ton week - on - week [4]

Production Capacity and Progress - The first BOPP production line was officially launched in November 2025, with a second line expected to be operational in the second half of 2026. The first line has achieved stable mass production of various thicknesses of BOPP capacitor film products, with thin films entering mass delivery after customer validation [1] - The BOPP production line focuses on thin and ultra-thin film products, with an estimated annual capacity of approximately 2,400 tons per line, depending on product thickness. A total of nine production lines are planned, with two in the first phase and subsequent lines to be added based on market demand [1] Product Applications and Differentiation - The BOPP film is positioned as ultra-thin electrical-grade film, including capacitor film and electrode film, used in the production of thin-film capacitors and battery electrode collectors. It features strong self-healing, high insulation resistance, low dielectric loss, high dielectric strength, and long service life [2] - In contrast, ordinary BOPP packaging materials are typically around 20 microns thick, focusing on basic packaging protection and appearance, with core characteristics including moderate mechanical strength and good transparency [2] Solid-State Battery Developments - The subsidiary, Xiamen Changsu, has pioneered solid-state battery-specific BOPA film, currently in the market promotion phase. The company is also involved in drafting and implementing standards for aluminum-plastic films used in solid-state batteries [3] - As the solid-state battery industry accelerates, the company plans to closely monitor market penetration rates and promote the production and sales of solid-state battery-specific films [3] Existing and Future Capacity for BOPA and PA6 - The current annual production capacity for PA6 (Nylon 6) chips is 145,000 tons, with 210,000 tons of additional capacity under construction, expected to be operational by 2027 [4][5] - The company currently operates 14 BOPA production lines with a total capacity of 145,000 tons, with plans for additional lines in both domestic and international locations, aiming for a total capacity of 275,000 tons upon completion of all projects [5] Utilization of PA6 Chips - The PA6 chips are primarily used internally for the production of BOPA films, with some sales based on market demand. Besides BOPA films, PA6 chips have various applications in textiles, industrial fibers, and engineering plastics [5] - The integrated supply chain for PA6 and BOPA films enhances cost competitiveness, quality control, and innovation capabilities, aligning with green production trends [5]

Production Capacity and Planning - The current annual production capacity of PA6 chips is 145,000 tons, with a planned additional capacity of 210,000 tons by 2027, including 140,000 tons from IPO funding and 70,000 tons from self-financing [1] - The company has 14 BOPA film production lines with a total capacity of 145,000 tons, with plans to add 40,000 tons in the Quanzhou base and 90,000 tons in Indonesia by 2027 [2] Market and Customer Insights - In the first half of 2025, overseas revenue accounted for over 50% of total sales, indicating significant growth in international markets [3] - The company has established a strong overseas marketing team, covering key regions such as Europe and Southeast Asia, which supports market expansion after the establishment of production capacity in Indonesia [7] Product Development and Technology - The first BOPP film production line was launched in November 2025, with a second line expected in late 2026, focusing on thin and ultra-thin film products [4] - BOPP film production lines are expected to have an annual capacity of approximately 24,000 tons, depending on product thickness, with a total of nine lines planned [4] Raw Material Supply and Industry Barriers - The supply of electrical-grade polypropylene remains low in domestic production, with the company sourcing materials from overseas suppliers [5] - The BOPP capacitor film industry has high entry barriers due to the quality of raw materials and the maturity of production technology, which are critical for product performance [5] Customer Base and Sales Growth - Recent sales growth has been driven by both existing and new customers, with a focus on increasing coverage of small and medium-sized clients [6] - The company benefits from stable demand from large enterprises, which helps optimize production scheduling and capacity utilization [6] Environmental Initiatives - BOPLA, a biodegradable film material made from polylactic acid, offers strong biodegradability and physical strength, making it suitable for various applications while supporting sustainability goals [8][9] - BOPA film materials provide excellent barrier properties, extending the shelf life of products and reducing the need for additives, making them ideal for food and consumer goods [9]

【期现行情】 期货方面： PP2601合约减仓震荡下行，最低价6161元/吨，最高价6220元/吨，最终收盘于6162元/吨， 在20日均线下方，跌幅1.14%。持仓量减少30955手至380203手。 【冠通期货研究报告】 PP日报：震荡下行 发布日期：2025年12月10日 【行情分析】 截至12月5日当周，PP下游开工率环比上涨0.10个百分点至53.93%，处于历年同期偏低水平。但 其中拉丝主力下游塑编开工率环比持平于44.1%，塑编订单环比小幅下降，略低于去年同期。12月10 日，检修装置变动不大，PP企业开工率维持在84%左右，处于中性偏低水平，标品拉丝生产比例下跌 至25.5%左右。月初石化累库较多，目前石化库存处于近年同期偏高水平。成本端，伊拉克部分前期 故障油田恢复生产，叠加欧美成品油裂解价差持续下跌，原油价格下跌。供应上，新增产能40万吨/ 年的中石油广西石化10月中旬投产，近期检修装置略有减少。下游进入旺季尾声，塑编等订单开始 下降，BOPP膜价格下跌后暂稳，市场缺乏大规模集中采购，对行情提振有限，贸易商普遍让利以刺 激成交。国家发展改革委会同有关部门及相关行业协会召开会议，研究制定价格 ...

1. Report Industry Investment Rating - No information provided about the report industry investment rating 2. Core Viewpoints - The PP market is expected to experience weak and volatile trends in the near future due to unchanged supply - demand patterns and no significant macro - level positive news [1] - The L - PP spread is expected to decline as there may be new plastic production capacity coming online this year and the peak season for agricultural films is ending [1] 3. Grouped Summaries 3.1 Market Analysis - As of the week ending December 5, the downstream PP operating rate rose 0.10 percentage points to 53.93% week - on - week, remaining at a relatively low level compared to the same period in previous years [1][4] - On December 9, the operating rate of PP enterprises increased to around 84% due to the resumption of some maintenance devices, and the production ratio of standard - grade drawstring products rose to around 27.5% [1][4] - The petrochemical inventory is at a relatively high level compared to the same period in recent years, with the early petrochemical inventory on Tuesday increasing 0.5 tons to 69.5 tons week - on - week, 3.5 tons higher than the same period last year [1][4] - Crude oil prices dropped as some previously malfunctioning oil fields in Iraq resumed production and the crack spread of refined oil in Europe and the US continued to decline [1] - The downstream market is at the end of the peak season, with orders for drawstring products and BOPP films decreasing, and the market lacks large - scale centralized procurement [1] 3.2 Futures and Spot Market - The PP2601 futures contract decreased in an oscillatory manner with a decline of 1.18%, closing at 6192 yuan/ton. The trading volume decreased by 11,906 lots to 411,158 lots [2] - Most spot prices of PP in various regions declined, with drawstring products priced at 6050 - 6380 yuan/ton [3] 3.3 Raw Material End - The Brent crude oil 02 contract fell below $63 per barrel, and the CFR propylene price in China remained unchanged at $745 per ton week - on - week [6]

Group 1 - Guangzhou Wenwu Technology Co., Ltd. has been established with a registered capital of 1 million RMB [1] - The company's business scope includes sales of plastic processing special equipment, plastic products, hardware products, and automotive parts [1] - Additional services offered by the company include technology intermediary services, trade brokerage, and various manufacturing and processing services [1] Group 2 - The company is involved in the manufacturing of industrial robots, electronic special equipment, and molds [1] - It also provides technical services, development, consulting, and technology transfer [1] - The company engages in the rental of mechanical equipment and the import and export of goods [1]

1. Report Industry Investment Rating - Not provided in the content 2. Core View of the Report - Plastic and PP prices are expected to be weakly volatile in the near term. The L - PP spread is predicted to decline due to potential new plastic capacity and the end of the agricultural film peak season [3]. 3. Summary by Relevant Catalogs 3.1 Plastic and PP开工率 - Plastic开工率下降1.5个百分点至87.5%左右，处于中性水平，因新增裕龙石化HDPE 2线等检修装置 [15]. - PP开工率上涨0.5个百分点至81.5%左右，处于中性偏低水平，因东莞巨正源一期二线、独山子石化老二线等检修装置重启开车 [15]. 3.2 Plastic and PP下游开工率 - As of the week of December 5, PE下游开工率环比下降0.54个百分点至43.76%，处于近年同期偏低位水平，农膜进入旺季尾声，农膜和包装膜订单均下降 [21]. - As of the week of December 5, PP下游开工率环比上涨0.10个百分点至53.93%，处于历年同期偏低水平，拉丝主力下游塑编开工率环比持平于44.1%，塑编订单环比小幅下降，略低于去年同期 [21]. 3.3 Plastic基差 - The basis of the 01 contract dropped to 4 yuan/ton, at a relatively low level, as the decline of the spot price was greater than that of the futures price [25]. 3.4 Plastic and PP库存 - On Friday, the early petrochemical inventory decreased by 10,000 tons to 670,000 tons week - on - week, 60,000 tons higher than the same period last year. Petrochemical inventory is currently at a relatively high level in recent years [28].

Group 1: Company Overview - Shandong Kaiguite Plastic Industry Co., Ltd. is a leading enterprise in the high-end plastic industry park in Ju County, with products exported to Europe, America, and Central Asia [1] - The company has experienced a 60% year-on-year increase in order volume, particularly for self-developed high-end products like rice husk tableware and functional preservation films, achieving a daily shipment volume of 5,000 to 6,000 boxes [1] - To seize market opportunities and strengthen its industry position, the company plans to expand biodegradable product capacity and upgrade product testing equipment, enhancing core competitiveness through technological iteration [1] Group 2: Financial Services - Ju County Rural Commercial Bank focuses on online digital financial services, with the "Plastic Ten Thousand Families" special credit product at its core, precisely addressing the high-quality development needs of plastic enterprises [2] - The bank has integrated multi-dimensional data from various government departments and industry associations to create a comprehensive data system, enabling it to capture the financing needs of enterprises for capacity expansion and upgrades [2] - The "Plastic Ten Thousand Families" service allows for a streamlined online financing process, with loans approved and funds disbursed within 48 hours, significantly improving the efficiency of obtaining financing for enterprises [2][3] Group 3: Impact on Industry - Shandong Kaiguite Plastic Industry has deeply integrated with the "Plastic Ten Thousand Families" online digital financial service, allowing for efficient management of loans and repayments through mobile banking [3] - The bank has provided over 210 million yuan in loans to 25 enterprises in the Ju County plastic industry association, leading to an increase in production capacity of nearly 20,000 tons and promoting the transformation of the county's plastic industry towards environmental protection, high-end products, and internationalization [3] - The online service model of the bank has broken spatial and temporal limitations, enhancing financing efficiency and positioning "Plastic Ten Thousand Families" as a strong engine for high-quality development in the county's plastic industry [3]