Core Viewpoint - The Indonesian palm oil industry has shown strong growth in the first eight months of the year, with both production and export values increasing significantly [1] Production and Export Performance - From January to August, the cumulative production of crude palm oil and palm kernel oil reached 39.04 million tons, a year-on-year increase of approximately 13% compared to 34.52 million tons in the same period last year [1] - The growth in production is attributed to improved plantation efficiency, strong demand for biodiesel, and robust export performance [1] Domestic Consumption and Export Trends - In August, domestic palm oil consumption rose to 2.1 million tons, with the energy sector making a significant contribution; biodiesel consumption increased by 5.71% year-on-year, reaching 1.11 million tons [1] - Although palm oil exports in August slightly decreased by 1.81% from July to 3.47 million tons, the export value increased by 3.5% month-on-month to $3.82 billion, with an average export price of $1,204 per ton [1] - Cumulatively, from January to August, Indonesia's palm oil export value reached $24.78 billion, a substantial year-on-year increase of nearly 43% [1] Future Outlook - GAPKI anticipates that with the continued recovery in global demand and sustained high prices, the Indonesian palm oil industry is expected to maintain a steady growth momentum, with annual export value potentially exceeding $30 billion [1]

Core Viewpoint - Indonesia plans to increase crude palm oil (CPO) production from 48.2 million tons in 2024 to 60 million tons by 2030 in response to rising demand in food, biofuels, and oleochemical sectors [1] Group 1: Production Goals and Challenges - The Indonesian Palm Oil Association (Gapki) indicates that due to aging plantations, CPO and palm kernel oil (PKO) production is expected to see a modest increase of 1.7% to 53.6 million tons by 2025 [1] - Aging palm oil plantations are causing stagnation in CPO production growth, which is gradually pushing prices higher [1] Group 2: Market Dynamics - Recent increases in palm oil prices have drawn market attention, with the Indonesian President announcing a crackdown on illegal resource extraction [1] - Government investigations have revealed the seizure of 3.1 million hectares of illegal palm oil plantations, contributing to supply tightening and concerns over export restrictions, which support the strengthening of international palm oil prices [1]

Core Viewpoint - The China Securities report indicates a 4.51% increase in the CITIC Basic Chemical Industry Index for July 2025, ranking 13th among 30 CITIC primary industries, with a recommendation to focus on pesticide, organic silicon, and polyester filament industries in August 2025 [1][2][5] Market Review - In July 2025, the CITIC Basic Chemical Industry Index outperformed the Shanghai Composite Index by 0.77 percentage points and the CSI 300 Index by 0.96 percentage points, with a year-on-year increase of 41.50%, surpassing the Shanghai Composite Index by 13.06 percentage points and the CSI 300 Index by 16.24 percentage points [2] Sub-industry and Stock Performance - Among 33 CITIC tertiary sub-industries in July 2025, 26 experienced gains, with modified plastics, polyurethane, and civil explosives leading the way with increases of 16.69%, 14.01%, and 12.09% respectively. Conversely, nylon, fluorochemicals, and lithium battery chemicals saw declines of 3.99%, 1.26%, and 1.25% respectively [3] - Out of 523 stocks in the basic chemical sector, 310 rose while 211 fell, with the top gainers being Xinwei New Materials (1083.42%), Dongcai Technology (84.92%), and Honghe Technology (58.84%). The largest declines were seen in Jiyuan Group (-26.23%), Keheng Co. (-25.78%), and Zhongyida (-23.69%) [3] Product Price Tracking - In July 2025, international oil prices continued to rise, with WTI crude increasing by 6.37% to $69.26 per barrel and Brent crude by 7.28% to $72.53 per barrel. Among 319 tracked products, 103 saw price increases, with TDI, trichloromethane, and coking coal leading the gains at 43.29%, 32.79%, and 32.56% respectively. However, 177 products experienced price declines, with the largest drops in methyl acrylate (-24.08%) and butyl acrylate (-10.61%) [4] Industry Investment Recommendations - The industry maintains a "market perform" investment rating, anticipating a potential improvement in certain sub-industries as the chemical industry's anti-involution policies take effect, particularly in the pesticide, organic silicon, and polyester filament sectors for August 2025 [5]

Investment Rating - The report maintains an investment rating of "in line with the market" for the basic chemical industry [7][5]. Core Viewpoints - The basic chemical industry index rose by 4.51% in July 2025, outperforming the Shanghai Composite Index and the CSI 300 Index by 0.77 and 0.96 percentage points, respectively [10][7]. - The report suggests continued focus on the pesticide, organic silicon, and polyester filament sectors, which are expected to benefit from the anti-involution policies [5][7]. Summary by Sections Market Review - The basic chemical industry index has increased by 41.50% over the past year, ranking 14th among 30 major industries [10][7]. - In July 2025, 26 out of 33 sub-industries saw an increase, with modified plastics, polyurethane, and civil explosives leading the gains at 16.69%, 14.01%, and 12.09%, respectively [11][10]. Product Price Tracking - The report indicates a continued downward trend in chemical product prices, with 177 products showing a decrease in July 2025 [7][11]. - Notable price increases were observed in TDI, trichloromethane, and coking coal, with respective rises of 43.29%, 32.79%, and 32.56% [7][11]. Industry and Company News - The report highlights the launch of a three-year action plan by the China Pesticide Industry Association to combat issues like hidden additives and illegal production in the pesticide sector [29][30]. - A significant investment of 2.32 billion yuan by Shandong Haihua in Inner Mongolia's largest natural soda ash mine is noted, aimed at optimizing product structure and expanding development space [34][35].

Core Viewpoint - The European Union will establish export quotas for Indonesian palm oil, which will subsequently receive a 0% tariff rate [1] Group 1 - The decision by the EU is expected to significantly impact the Indonesian palm oil industry by providing a competitive advantage through reduced tariffs [1] - This move aligns with the EU's broader strategy to regulate palm oil imports while supporting sustainable practices [1]