Investment Rating - The report maintains a positive outlook on the PCB upstream industry chain, particularly focusing on copper foil, electronic cloth, and equipment [1][11]. Core Insights - The report emphasizes the importance of monitoring the price trends of AI copper foil and the recent price increases announced by several CCL companies, indicating a favorable market environment for AI copper foil due to low domestic replacement rates and a healthy competitive landscape [1][11]. - The report highlights the robust growth potential in the African building materials sector, particularly for local manufacturing companies like Keda Manufacturing, which is expected to benefit from increased local production and supply chain protection [12][13]. - Traditional building materials are showing signs of recovery, with improved land acquisition sentiment and a potential stabilization in new construction starts, suggesting a positive trend for the real estate sector [13]. Summary by Sections Weekly Discussion - Continued recommendation for PCB upstream industry chain, focusing on AI copper foil, electronic cloth, and equipment due to favorable market conditions and limited domestic competition [1][11]. Cyclical Linkage - Cement prices are under pressure, with a national average of 340 RMB/t, down 42 RMB year-on-year, while glass prices are declining, indicating a challenging environment for these sectors [14][15]. - The report suggests that the demand for AI materials, particularly high-end copper foil and special fiberglass, remains strong, with price trends serving as key indicators of market health [15][16]. Market Performance - The building materials index showed a positive performance of 4.07% during the week, with specific segments like fiberglass and cement also reflecting gains, indicating a recovering market sentiment [18][29]. Building Materials Price Changes - National cement prices increased by 0.2% week-on-week, with regional variations in price adjustments, reflecting a gradual recovery in demand as weather conditions improve [29][30]. - The floating glass market continues to face challenges, with prices declining and inventory pressures persisting, although some signs of demand recovery are noted [39][40]. Fiberglass Market - The domestic fiberglass market remains stable, with prices holding steady, while electronic cloth prices are also stable, indicating a balanced supply-demand scenario [61][62]. Carbon Fiber Market - The carbon fiber market is stable, with prices averaging 83.75 RMB/kg, reflecting steady production rates and cautious demand from downstream industries [67][68].

Group 1 - The domestic commodity futures market closed mostly higher during the night session, with non-metallic building materials leading the gains [1] - Glass prices increased by 4.93%, while PVC rose by 2.32% [1] - The black series commodities generally saw increases, with coking coal up by 3.38%, coke by 2.26%, hot-rolled coil by 1.75%, rebar by 1.30%, and iron ore by 0.95% [1] Group 2 - Energy products performed strongly, with fuel oil rising by 2.01% and low-sulfur fuel oil by 1.03% [1] - Most chemical products also saw gains, including styrene up by 2.20%, butadiene rubber by 1.32%, polypropylene by 0.83%, asphalt by 0.77%, plastic by 0.75%, ethylene glycol by 0.64%, and rubber by 0.27% [1] - Oilseeds and oils showed mixed results, with palm oil up by 1.69%, soybean meal by 0.79%, soybean two by 0.62%, and soybean oil by 0.39%, while soybean one fell by 0.52% [1] Group 3 - Agricultural and sideline products experienced slight fluctuations, with pulp up by 0.64%, corn starch by 0.64%, and corn by 0.61% [1]

Investment Rating - The report maintains a positive outlook on the African building materials sector and local manufacturing leader Keda Manufacturing, particularly following the ignition of Keda's base in Côte d'Ivoire in June [1][13]. Core Insights - The Kenyan government has implemented a tiered tax on imported building materials, including a 3% export promotion tax on ceramic tiles and sanitary ware, aimed at reducing import dependency and fostering local manufacturing [1][13]. - The report emphasizes the importance of local production and consumption integration, highlighting Keda Manufacturing's efforts to establish local production in multiple African countries [1][13]. - The report identifies potential investment opportunities in the PCB upstream new materials sector, particularly in electronic cloth and copper foil, driven by high demand in AI applications [2][14]. - The waterproofing industry is experiencing frequent price increases, indicating a consensus among leading companies to curb malicious competition and stabilize prices [3][15]. - The cement sector is undergoing capacity reduction efforts, with the China Cement Association advocating for a unified approach to actual and registered production capacities [3][15]. Summary by Sections Weekly Discussion - Keda Manufacturing is recognized as a leader in local production within Africa, with recent developments in Côte d'Ivoire and supportive government policies in Kenya [1][13]. Cycle Interaction - Cement prices have shown a slight decline, with an average price of 347 RMB/t, down 46 RMB year-on-year, while glass prices have increased slightly to 1204.97 RMB/t [4][16]. - The report notes a stable demand for glass and fiberglass, with the latter maintaining a price of 3669 RMB/t [4][16][61]. National Subsidy Tracking - The report highlights government initiatives to boost consumption, including subsidies for building materials, which may benefit companies like Sangor and North New Materials [5][17]. Important Changes - Several companies, including Zhongcai Technology and China Jushi, have announced significant profit increases for the first half of 2025, indicating strong performance in the building materials sector [6][21].

Group 1 - The domestic commodity futures market closed mostly higher during the night session, with the black series showing a general increase [1] - Coking coal rose by 2.60%, iron ore increased by 1.87%, coking coal gained 1.52%, hot-rolled coil went up by 1.39%, and rebar climbed by 1.36% [1] - In the non-metallic building materials sector, glass increased by 2.54%, while in the chemical products category, rubber rose by 1.19%, and butadiene rubber increased by 1.18% [1] Group 2 - In the oilseed and oil category, soybean meal rose by 0.99%, and soybean oil increased by 0.81% [1] - Energy products generally declined, with fuel oil down by 1.49%, low-sulfur fuel oil decreasing by 0.57%, and LPG falling by 0.48% [1] - In the chemical products sector, asphalt decreased by 0.28%, polypropylene fell by 0.18%, and soybean oil dropped by 0.34% [1]

Core Viewpoint - The domestic commodity futures market experienced a majority of price increases during the night session, particularly in the chemical sector, indicating a positive trend in commodity prices overall [1] Group 1: Chemical Products - The price of 20 rubber increased by 2.91% [1] - Rubber prices rose by 2.28% [1] - Styrene saw an increase of 1.60% [1] - Butadiene rubber rose by 1.59% [1] Group 2: Black Metals - Coking coal prices increased by 2.03% [1] - Coke prices rose by 1.59% [1] - Iron ore saw a price increase of 1.09% [1] Group 3: Non-Metallic Building Materials - Glass prices increased by 1.85% [1] - PVC prices rose by 1.20% [1] Group 4: Agricultural Products - Pulp prices increased by 1.33% [1] Group 5: Oils and Fats - Soybean meal rose by 0.24% [1] - Soybean oil remained stable [1] - Soybean one decreased by 0.10% [1] - Palm oil fell by 0.44% [1] Group 6: Energy Products - LPG prices increased by 0.34% [1] - Low sulfur fuel oil decreased by 0.30% [1] - Fuel oil fell by 0.60% [1]

Investment Rating - The report maintains a positive outlook on the pearl pigment market, highlighting its growth potential and investment opportunities [13][14]. Core Insights - The pearl pigment market is characterized by its small and fragmented nature, with significant profit potential driven by new consumer applications in cosmetics, automotive, and batteries. The global market for pearl pigments is projected to grow from 23.5 billion CNY in 2023 to 44 billion CNY by 2030, with a CAGR of 9.4% from 2023 to 2030 [13]. - The report emphasizes the importance of local operational capabilities for companies looking to expand into Africa, particularly in East Africa, where economic growth and political stability are improving [14]. - The upcoming China-Central Asia Summit is expected to create investment opportunities in Central Asia, with a focus on companies like Xinjiang Communications Construction and Qing Song Jianhua [15]. Summary by Sections Weekly Discussion - The pearl pigment market is expected to benefit from increased demand in cosmetics and automotive sectors, with a significant portion of the market being high-end [13]. - The report suggests monitoring the acquisition activities in the pearl pigment sector, particularly the acquisition of a stake in a major Korean manufacturer by a specific company [13]. Cyclical Linkage - Cement prices have decreased to 360 CNY per ton, with a national average shipment rate of 45.7% [16]. - The average price of float glass has dropped to 1229.90 CNY per ton, reflecting a decline in demand and increased inventory levels [16]. - The report highlights the challenges faced by the construction materials sector, including fluctuating prices and demand pressures [16]. National Subsidy Tracking - Recent adjustments to national subsidy policies for home appliances have led to limited supply and increased competition among consumers [17]. - The report anticipates a potential restart of subsidy programs due to rapid consumption of existing funds [17]. Significant Changes - A company plans to invest in a wind turbine blade manufacturing facility in Uzbekistan, with a total investment of approximately 25.24 million USD [18]. - Another company is acquiring a 51% stake in a chemical firm for about 170 million CNY, enhancing its market position [18]. Market Performance - The construction materials index has shown a decline of 2.14% in the past week, with specific sectors like glass manufacturing and fiberglass experiencing larger drops [20]. - The report notes that the cement market is under pressure due to seasonal factors, with expectations of continued price adjustments [29].

Core Insights - The monitoring of prices for 50 key production materials across nine categories indicates that in mid-May 2025, 24 products saw price increases, 24 experienced declines, and 2 remained stable [1]. Group 1: Price Changes in Key Categories - In the black metal category, rebar prices increased by 2.5 yuan per ton (0.1%), while ordinary medium plates decreased by 9.4 yuan per ton (-0.3%) [2]. - In the non-ferrous metals category, aluminum ingot prices rose by 487.9 yuan per ton (2.5%), while zinc ingot prices fell by 75.0 yuan per ton (-0.3%) [2]. - Chemical products showed significant price increases, with pure benzene rising by 520.6 yuan per ton (9.3%) and styrene increasing by 583.3 yuan per ton (8.1%) [2]. - In the petroleum and natural gas sector, liquefied natural gas prices dropped by 49.2 yuan per ton (-1.1%), while diesel prices increased slightly by 7.9 yuan per ton (0.1%) [2]. - Coal prices generally decreased, with ordinary mixed coal dropping by 21.9 yuan per ton (-4.3%) [2]. Group 2: Agricultural Products and Inputs - Among agricultural products, the price of rice increased by 27.9 yuan per ton (0.7%), while the price of soybeans rose by 50.2 yuan per ton (1.2%) [3]. - Fertilizer prices showed mixed results, with urea increasing by 19.9 yuan per ton (1.0%), while compound fertilizer prices fell by 12.1 yuan per ton (-0.4%) [3]. - The price of natural rubber rose by 289.6 yuan per ton (2.0%), indicating a positive trend in the forestry sector [3]. Group 3: Monitoring Methodology and Scope - The price monitoring encompasses over 2,000 wholesalers, agents, and distributors across more than 300 trading markets in 31 provinces [6]. - The methodology includes on-site price collection, as well as inquiries via phone, instant messaging, and email [7]. - The price changes are categorized based on percentage fluctuations, with a total of 50 products monitored across nine categories [8].

Core Viewpoint - The monitoring of market prices for 50 important production materials across nine categories indicates a mixed trend, with 20 products experiencing price increases, 25 seeing declines, and 5 remaining stable from mid-April to late April 2025 [2][3]. Price Changes Summary 1. Black Metals - Rebar (Φ20mm, HRB400E) increased by 27.5 CNY to 3193.3 CNY per ton, a rise of 0.9% - Wire rod (Φ8-10mm, HPB300) rose by 33.3 CNY to 3358.3 CNY per ton, an increase of 1.0% - Ordinary medium plate (20mm, Q235) increased by 17.5 CNY to 3548.8 CNY per ton, a rise of 0.5% - Hot-rolled ordinary plate (4.75-11.5mm, Q235) saw a slight increase of 3.0 CNY to 3310.2 CNY per ton, a rise of 0.1% - Seamless steel pipe (219*6, 20) decreased by 12.0 CNY to 4143.6 CNY per ton, a decline of 0.3% - Angle steel (5) fell by 18.3 CNY to 3503.7 CNY per ton, a decrease of 0.5% [4]. 2. Nonferrous Metals - Electrolytic copper (1) increased by 1826.5 CNY to 77680.7 CNY per ton, a rise of 2.4% - Aluminum ingot (A00) rose by 234.6 CNY to 19952.9 CNY per ton, an increase of 1.2% - Lead ingot (1) increased by 87.5 CNY to 16800.0 CNY per ton, a rise of 0.5% - Zinc ingot (0) rose by 222.9 CNY to 22862.9 CNY per ton, an increase of 1.0% [4]. 3. Chemical Products - Sulfuric acid (98%) decreased by 24.6 CNY to 661.4 CNY per ton, a decline of 3.6% - Caustic soda (liquid, 32%) increased by 8.6 CNY to 867.1 CNY per ton, a rise of 1.0% - Methanol (first grade) saw a slight decrease of 1.4 CNY to 2393.8 CNY per ton, a decline of 0.1% - Pure benzene (industrial grade) decreased by 188.0 CNY to 6092.0 CNY per ton, a decline of 3.0% - Styrene (first grade) fell by 169.6 CNY to 7416.0 CNY per ton, a decline of 2.2% [4]. 4. Energy Products - Liquefied natural gas (LNG) decreased by 21.2 CNY to 4460.4 CNY per ton, a decline of 0.5% - Liquefied petroleum gas (LPG) fell by 108.0 CNY to 4924.0 CNY per ton, a decline of 2.1% - Gasoline (95 National VI) decreased by 83.0 CNY to 8540.8 CNY per ton, a decline of 1.0% - Diesel (0 National VI) fell by 79.0 CNY to 7018.2 CNY per ton, a decline of 1.1% [4]. 5. Coal - Anthracite (washed lump) increased by 27.5 CNY to 960.0 CNY per ton, a rise of 2.9% - Ordinary mixed coal (4500 kcal) decreased by 5.4 CNY to 520.6 CNY per ton, a decline of 1.0% - Shanxi large mixed coal (5000 kcal) fell by 9.4 CNY to 588.6 CNY per ton, a decline of 1.6% [4]. 6. Agricultural Products - Rice (glutinous) increased by 12.7 CNY to 3938.0 CNY per ton, a rise of 0.3% - Wheat (national standard grade three) rose by 17.8 CNY to 2405.8 CNY per ton, an increase of 0.7% - Corn (yellow corn grade two) increased by 19.6 CNY to 2215.3 CNY per ton, a rise of 0.9% - Soybeans (yellow soybeans) rose by 54.0 CNY to 4242.4 CNY per ton, an increase of 1.3% [5].