Report Information - Report Title: Synthetic Rubber Morning Report [2] - Research Team: Energy and Chemicals Team of the Research Center [3] - Report Date: February 2, 2026 [3] - Data Sources: Mysteel, Wind [9] Summary of Key Points 1. BR (Butadiene Rubber) Futures Market - **Closing Price**: The closing price of the BR main contract on January 30th was 13,390, with no daily change and a weekly increase of 125 [4]. - **Open Interest**: The open interest on January 30th was 53,381, a daily decrease of 14,803 and a weekly decrease of 38,273 [4]. - **Trading Volume**: The trading volume on January 30th was 672,720, a daily increase of 204,234 and a weekly decrease of 74,749 [4]. - **Warehouse Receipt Quantity**: The warehouse receipt quantity on January 30th was 28,320, with no daily change and a weekly increase of 800 [4]. - **Virtual - Physical Ratio**: The virtual - physical ratio on January 30th was 9.42, a daily decrease of 3 and a weekly decrease of 7 [4]. Price Differences - **Spread between Butadiene and Styrene - Butadiene Rubber (SBR)**: The spread on January 30th was -90, a daily increase of 100 and a weekly decrease of 25 [4]. - **Spread between Contracts**: The 02 - 03 spread on January 30th was -82, a daily decrease of 5 and a weekly increase of 5; the 03 - 04 spread was -60, a daily decrease of 5 and a weekly decrease of 100 [4]. - **Spread between Different Rubber Types**: The RU - BR spread on January 30th was 2,970, a daily decrease of 330 and a weekly increase of 5; the NR - BR spread was -152, a daily decrease of 220 [4]. Spot Market - **Domestic Market Prices**: The Shandong market price on January 30th was 12,950, with no daily change and a weekly increase of 50; the Transfar market price was 12,900, with no daily or weekly change; the Qilu ex - factory price was 13,000, with no daily or weekly change [4]. - **International Market Prices**: The CFR Northeast Asia price on January 30th was 1,550, with no daily or weekly change; the CFR Southeast Asia price was 1,785, with no daily change and a weekly increase of 35 [4]. Profit - **Spot Processing Profit**: The spot processing profit on January 30th was -164, a daily decrease of 51 and a weekly increase of 407 [4]. - **Import Profit**: The import profit on January 30th was 282, a daily decrease of 4 and a weekly increase of 77 [4]. - **Export Profit**: The export profit on January 30th was 500, a daily increase of 3 and a weekly increase of 175 [4]. 2. BD (Butadiene) Spot Market - **Domestic Market Prices**: The Shandong market price on January 30th was 10,700, a daily increase of 50 and a weekly decrease of 350; the Jiangsu market price was 10,600, a daily increase of 50 and a weekly decrease of 300; the Yangzi ex - factory price was 10,600, with no daily change and a weekly decrease of 200 [4]. - **International Market Price**: The CFR China price on January 30th was 1,270, with no daily change and a weekly increase of 70 [4]. Profit - **Ethylene Cracking Profit**: The ethylene cracking profit on January 29th was -27 [4]. - **Carbon Tetra - Extraction Profit**: The carbon tetra - extraction profit on January 29th was 3,513 [4]. - **Butene Oxidative Dehydrogenation Profit**: The butene oxidative dehydrogenation profit on January 30th was 1,940, a daily increase of 22 and a weekly decrease of 370 [4]. - **Import Profit**: The import profit on January 30th was 478, a daily increase of 47 and a weekly decrease of 829 [4]. - **Export Profit**: The export profit on January 30th was -1,034, a daily increase of 98 and a weekly increase of 2,471 [4]. 3. Production Profits of Related Products - **SBR Production Profit**: The SBR production profit on January 30th was 588, with no daily change and a weekly increase of 313 [4]. - **ABS Production Profit**: The ABS production profit on January 29th was -1,315 [4]. - **SBS Production Profit**: The SBS production profit on January 30th was -1,175, with no daily change [4].

Group 1 - The Huajin Aramco fine chemical and raw material engineering project has successfully completed the mechanical completion of all 32 major production units, including a 1.65 million tons/year ethylene unit and a 2 million tons/year aromatics combined unit [1] - The total investment for the project is 83.7 billion yuan, making it a significant project in the comprehensive strategic cooperation between China and Saudi Arabia, and the largest investment project by Saudi Arabia in China [1] - The project, which started construction in March 2023, is expected to be completed by 2025 and has set multiple industry records, including the largest single ethylene unit in China [1] Group 2 - The city of Panjin has planned 60 downstream projects related to the Huajin Aramco project, with 118 target enterprises in reserve and a planned downstream industrial cluster area of 3.57 square kilometers [2] - Once completed, the project is expected to generate annual revenues exceeding 100 billion yuan, total profits over 10 billion yuan, and tax revenues exceeding 20 billion yuan, positioning it as a world-class petrochemical and fine chemical industry base [2] - The project aims to strengthen cooperation with Saudi Arabia and other Middle Eastern countries in areas such as specialty chemicals, high-performance rubber, and engineering plastics, promoting further partnerships in Panjin [2]

Core Insights - The Huajin Amoco fine chemical and raw material engineering project has reached a significant milestone with the mechanical completion of all 32 major production units, including a 1.65 million tons/year ethylene unit and a 2 million tons/year aromatics unit, achieving its annual target [1][2]. Group 1: Project Overview - The project commenced on March 29, 2023, with a total investment of 83.7 billion yuan, focusing on the construction of 15 million tons/year refining and 1.65 million tons/year ethylene among other units [1]. - The construction involved multiple concurrent activities such as concrete work, pipeline installation, and equipment setup, requiring high precision and overcoming significant logistical challenges [1]. Group 2: Key Achievements - The 1.65 million tons/year ethylene unit is the largest single ethylene unit in China and serves as a leading facility in the chemical region, with critical construction milestones achieved through dedicated installation teams [2]. - The project team successfully completed the lifting of a 4,366-ton residue tower in one attempt, marking a record in the industry for similar equipment [2]. - A comprehensive inspection system was established for the polyether polyol unit, ensuring traceability and verifiability throughout the construction process [2]. Group 3: Future Implications - The mechanical completion of the 32 major units marks not only a key milestone but also the beginning of new objectives, aiming to enhance the petrochemical industry's structure from "coarse to fine" [2]. - Once operational, the project is expected to streamline the upstream and downstream supply chain, reduce the yield of finished oil products, and elevate the value chain [2].

Core Viewpoint - The company, Lihua Yihui Chemical Co., Ltd., has released its third-quarter operational data for 2025, ensuring the accuracy and completeness of the information provided in the report [7]. Financial Data - The financial statements for the third quarter of 2025 have not been audited [3]. - The report includes key financial data and indicators, with a focus on the company's performance over the specified period [3][4]. Major Products and Performance - The company has detailed the production, sales, and revenue realization of its main products, which include phenolic and ketone-related products, new energy materials, specialty chemicals, and industrial gases [7][8]. - Specific product categories mentioned are phenol, acetone, isopropanol, bisphenol A, dimethyl carbonate, propylene, and hydrogen, among others [7][8]. Price Changes - The report outlines the price changes for major products and raw materials, although specific figures are not provided in the summary [9]. Other Important Information - There are no other significant events affecting the company's operations during the reporting period [9].

Group 1 - The company guarantees the authenticity, accuracy, and completeness of the semi-annual report, and assumes legal responsibility for any false records or misleading statements [1][5][11] - The semi-annual report has not been audited [3][8] - The board of directors approved the profit distribution plan or capital reserve transfer plan, which is not applicable for this period [4] Group 2 - The company, Li Hua Yi Wei Yuan Chemical Co., Ltd., is identified by the stock code 600955 and is involved in the chemical industry [5][10] - The company has disclosed its major operating data for the first half of 2025, including production, sales, and revenue for key products [5][8] - The report includes information on the price changes of major products and raw materials [8] Group 3 - The board of directors held its ninth meeting on August 26, 2025, with all members present [2][12] - The board approved the semi-annual report and its summary, which complies with regulatory requirements [13][27] - The board also approved the cancellation of the supervisory board and the revision of the company's articles of association, which will be submitted for shareholder approval [15][29][54] Group 4 - The company will hold its first extraordinary general meeting of 2025 on September 12, 2025, with both on-site and online voting options available [33][35] - Shareholders must register to attend the meeting, with specific requirements outlined for both individual and corporate shareholders [44][45] - The meeting will address various proposals that have been previously approved by the board and supervisory board [38]

Summary of Conference Call Records Industry Overview - The records primarily discuss the **LPG (Liquefied Petroleum Gas)** market and its relationship with the **crude oil** market, particularly in the context of geopolitical tensions in the Middle East and trade dynamics between the US and China [1][2][3][4][6][16]. Key Points and Arguments 1. **Geopolitical Impact on Oil Prices**: - The easing of geopolitical tensions in the Middle East has led to a decrease in geopolitical premiums, with Brent crude oil prices expected to fluctuate and struggle to return to $80 per barrel [1][4][15]. - Recent events, including US military actions and diplomatic negotiations, have caused significant volatility in oil prices, with Brent crude reaching a peak of $79.4 per barrel before falling to $66.5-$67 [2][15]. 2. **LPG Market Trends**: - The LPG market is closely linked to crude oil prices, showing a weakening trend influenced by trade wars and geopolitical developments [1][6][7][16]. - Future LPG market performance is anticipated to remain weak, driven by global economic conditions and energy price fluctuations [1][7][16]. 3. **Carbon Four's Role**: - Carbon four (C4) has gained importance in the LPG futures market as a deliverable commodity, with its price being influenced by crude oil and its derivatives [8][9][10]. - The relationship between crude oil prices and LPG is primarily transmitted through C4 prices, affecting the pricing of LPG significantly [8][10][16]. 4. **Supply and Demand Dynamics**: - The supply of LPG has been impacted by increased production from domestic refineries, which has limited price increases despite rising crude oil prices [12][13]. - The demand for C3 (propane) is increasing, while C4 demand remains weak, potentially making C4 the cheapest deliverable commodity in the LPG futures market [3][24]. 5. **Future Price Predictions**: - The overall outlook for the LPG futures market is pessimistic, with expectations of continued price declines as C4 becomes the cheapest deliverable commodity [14][24]. - The LPG market is expected to follow crude oil prices more closely than propane demand, indicating a bearish trend [17][24]. 6. **Impact of Trade Policies**: - Changes in China's import structure have led to increased demand for Middle Eastern sources, making Saudi CP propane prices more resilient compared to oil prices [20]. - The ongoing trade tensions and tariff uncertainties have shifted Chinese importers' preferences towards Middle Eastern LPG, affecting pricing dynamics [11][20]. 7. **Shipping Costs and Geopolitical Risks**: - Shipping costs from the Middle East to the Far East have increased due to geopolitical instability, currently averaging $85-$86 per ton [21]. - The geopolitical situation has caused many importers to adopt a wait-and-see approach, impacting LPG trade flows and inventory levels [21][22]. 8. **Domestic Demand Trends**: - Residential demand for LPG is declining due to the increasing adoption of natural gas pipelines, while industrial demand remains uncertain due to economic conditions and trade policies affecting propane and butane usage [23][24]. Other Important Insights - The records highlight the significant influence of US political figures, particularly President Trump, on oil market expectations through public statements regarding oil prices [5][15]. - The relationship between domestic LPG prices and international benchmarks is complex, with various factors including tariffs, geopolitical risks, and market dynamics influencing pricing strategies [19][20]. This comprehensive analysis provides a detailed understanding of the current state and future outlook of the LPG market in relation to crude oil prices and geopolitical factors.