Investment Rating - The report maintains a rating of "B" for the new materials sector, indicating a positive outlook for the industry [2]. Core Insights - The new materials sector has shown an upward trend, with the new materials index increasing by 1.37%, although it underperformed compared to the ChiNext index, which rose by 1.81% [2]. - The report highlights the implementation of "anti-involution" policies in the new energy vehicle industry, which are expected to enhance the profitability of companies within the supply chain [4]. - The forecast for new energy vehicle sales in 2025 is projected to reach 16 million units, representing a year-on-year growth of 24.26%, indicating sustained growth in the industry [4]. Market Performance - The new materials sector experienced a weekly increase, with notable performances in various sub-sectors: synthetic biology index up by 4.18%, semiconductor materials up by 0.81%, electronic chemicals up by 1.10%, biodegradable plastics up by 1.74%, industrial gases up by 3.16%, and battery chemicals up by 1.45% [2][16]. - The overall market performance for the week (July 14-18, 2025) showed the CSI 300 index rising by 1.09%, the Shanghai Composite Index by 0.69%, and the ChiNext index by 3.17% [12]. Price Tracking - The report provides a weekly price tracking of various chemical products, including amino acids, biodegradable plastics, industrial gases, and vitamins, indicating stable prices for many products with slight fluctuations [3][11]. - For instance, the price of valine is reported at 14,400 RMB/ton with a weekly increase of 0.35%, while arginine is at 24,500 RMB/ton with a decrease of 2.00% [3]. Investment Recommendations - The report suggests focusing on companies such as Jun Ding Da, Times New Materials, Prit, and Nanjing Julong, which are expected to benefit from the favorable policies and market conditions [5].

Core Insights - The chemical new materials industry in China is rapidly developing but faces structural deficiencies, particularly in high-end supply, which is expected to improve by 2030 with a projected self-sufficiency rate of 90% [1][2] - Key areas for development include automotive, electronic information, aerospace, rail transportation, energy conservation, new energy, healthcare, and national defense, with a focus on addressing supply bottlenecks in critical raw materials [2] Industry Overview - The chemical new materials industry is expanding, with continuous improvements in the industrial system and technological innovation capabilities [1] - There is a growing number of specialized chemical new materials parks, and foreign investment in China's chemical new materials market is increasing [1] Challenges and Opportunities - Structural contradictions are prominent, including insufficient high-end supply, bottlenecks in key raw materials and special equipment, and a fragmented market with high entry barriers [1] - Despite current supply shortages, the self-sufficiency rates for various high-end materials are projected to rise significantly by 2030, including 83% for high-end polyolefin plastics and 90% for special rubber and elastomers [1] Strategic Recommendations - Companies should focus on optimizing and enhancing key chemical new materials while addressing supply bottlenecks in critical supporting materials [2] - Emphasis should be placed on technological advancements and policy-driven investment opportunities, with a call for mergers and acquisitions to strengthen industry influence [2] - Companies are encouraged to balance strengthening existing advantages with innovation and exploring new business areas to foster growth [2]

Core Viewpoint - The article discusses the current state and future prospects of China's chemical new materials industry, highlighting the continuous expansion of production capacity, technological innovations, and the emergence of specialized chemical parks, while also addressing structural challenges and the need for high-quality development. Group 1: Industry Overview - In 2023, China's chemical new materials capacity reached approximately 49 million tons per year, with an output exceeding 36 million tons and a production value of over 1.37 trillion yuan, remaining stable compared to 2022, although lithium battery materials saw a decline from 540 billion yuan to 480 billion yuan [5][20]. - The chemical industry is experiencing a transition from high-speed growth to high-quality development, with total revenue of 15.95 trillion yuan in 2023, a decrease of 1.1% year-on-year, and total profits of 873.4 billion yuan, down 20.7% [20][21]. Group 2: Technological Innovations - Since the 13th Five-Year Plan, the chemical new materials sector has seen significant technological advancements, with breakthroughs in key technologies such as photovoltaic-grade EVA, optical-grade PMMA, and high-strength carbon fibers [7][8]. - A number of critical products have broken foreign monopolies and achieved industrialization, including HDI, PC, PPS, and electronic-grade chemicals [8][10]. Group 3: Key Players and Market Dynamics - Major companies in the sector include Sinopec, PetroChina, and China National Chemical Corporation, focusing on high-end polyolefins, synthetic rubber, and carbon fibers [11]. - Private enterprises are also making strides in specialized fields such as EVA, fluorinated chemicals, and nylon, contributing to the development of China's new materials industry [11]. Group 4: Specialized Chemical Parks - Several specialized chemical parks have emerged, such as the Shanghai Chemical Park and Ningbo Petrochemical Economic Development Zone, which are becoming core drivers for the development of new materials [11][12]. Group 5: Investment Trends and Policy Guidance - Under the guidance of industrial policies, there is a high investment enthusiasm in the chemical new materials sector, focusing on high-end polyolefins, engineering plastics, and functional films [17][23]. - The industry is urged to prioritize the import of high-potential products to address supply shortages and enhance domestic production capabilities [23][24]. Group 6: Challenges and Future Directions - The industry faces structural contradictions, including insufficient high-end supply and bottlenecks in key raw materials and technologies [18][20]. - The focus is shifting towards high-quality development, with an emphasis on enhancing product quality and meeting the growing domestic demand for high-performance materials [21][22].

Core Viewpoint - The chemical new materials industry is expected to enter a rapid growth phase driven by policy support, industrial transformation, and increasing domestic demand for high-performance materials in sectors such as semiconductors, electronics, and renewable energy [2][11][12]. Group 1: Industry Growth and Market Potential - The global chemical new materials market was valued at approximately $370 billion in 2019 and is projected to reach $480 billion by 2025, with a CAGR of about 4.4% [3][16]. - The domestic market for chemical new materials is estimated to grow from approximately 900 billion yuan in 2019 to 1.5 trillion yuan by 2025, reflecting a CAGR of 8.6% [3][25]. - The demand for chemical new materials is expected to continue growing due to the transformation and upgrading of industries such as semiconductors, electronics, and renewable energy [3][25]. Group 2: Policy Support and Technological Advancements - The Chinese government has increased support for high-end manufacturing and new materials since the US-China trade tensions began in 2018, with policies aimed at promoting self-sufficiency in the supply chain [2][12]. - The Ministry of Industry and Information Technology released a directory in December 2021 that includes over 300 types of new materials, highlighting the government's commitment to advancing this sector [4][12]. - Domestic companies have significantly increased their R&D investments, with a reported 17 billion euros in 2019, reflecting a CAGR of 36% from 2014 to 2019 [4][27]. Group 3: Domestic Industry Landscape - The domestic chemical new materials industry has a strong foundation, with a market value of approximately 600 billion yuan in 2019, but still relies heavily on imports for high-end products [17]. - Key domestic players such as Wanhua Chemical, Hualu Hengsheng, and Jinhai Technology are making strides in the new materials sector through innovation and technology adoption [33]. - The industry is characterized by a significant opportunity for domestic substitution, particularly in high-end polyolefins, engineering plastics, and functional films, where self-sufficiency remains low [17][19]. Group 4: Emerging Opportunities and Trends - The demand for high-performance fibers, films, and electronic chemicals is expected to grow rapidly, driven by advancements in sectors like renewable energy and electronics [5][25]. - Emerging materials such as aerogels and biobased materials are gaining traction, with domestic companies positioned to capture early market share in these innovative fields [5][19]. - The lifecycle of many new materials in China is still in the early stages, indicating substantial room for growth and development compared to more mature markets in developed countries [19][20].

Core Viewpoint - The 9th China (Zibo) Chemical Technology Equipment Exhibition aims to leverage Zibo's strong chemical industry base to promote high-quality development and innovation in the sector [3][4]. Industry Overview - Zibo has 482 chemical enterprises with an industrial scale of 374.29 billion, accounting for nearly one-seventh of Shandong province's total [3]. - The city has developed three major industry segments: petrochemicals, fine chemicals, and new chemical materials, along with four key industrial chains including polyolefins and polyurethane [3]. Exhibition Details - The exhibition will cover an area of 80,000 square meters and attract over 1,200 domestic and international enterprises, marking a new high in scale and influence [3]. - The event will feature a forum on "Industrial Internet + AI Technology Empowering Chemical Industry Development," focusing on AI applications and digital transformation paths for the chemical sector [3][4]. Operational Model - The exhibition adopts a collaborative model of "government guidance + association hosting + enterprise undertaking," with a focus on market-oriented operations [4]. - A targeted invitation strategy was employed, reaching out to over 30 chemical parks and 200 industry leaders to ensure effective participation [4]. Innovation and Sustainability - The exhibition emphasizes precision and professionalism, with a scientific layout of exhibition areas based on chemical equipment subfields and supply chain systems [4]. - Local enterprises like Heda Group and Dongyue Group will showcase cutting-edge products, highlighting the strength and innovation of Shandong's high-end chemical industry cluster [5]. Future Goals - The Shandong High-end Chemical Industry Development Promotion Association aims to transform the exhibition into a key hub connecting policies, technologies, and markets, fostering efficient circulation and deep integration of various elements [5].