Investment Rating - The industry investment rating is "Buy" for companies with strong fundamentals and low correlation to oil prices, suggesting a bottom-fishing strategy [10][18]. Core Viewpoints - The report indicates a recovery in macro expectations, with a notable increase in oil prices due to supply risks from geopolitical tensions and seasonal demand [10][14]. - The report emphasizes the importance of focusing on domestic demand and opportunities in new material substitutions, particularly in the agricultural chemical sector during the spring planting season [10][18]. Summary by Sections 1. Core Viewpoints - Oil prices have risen this week, with a focus on companies that have strong fundamentals and are less affected by oil price fluctuations [10][18]. - Recommendations include companies like Wanhua Chemical, Huamao Technology, Runfeng Co., Guoguang Co., and Hualu Hengsheng, highlighting their unique market positions and growth potential [10][18]. 2. Oil and Chemical Price Information 2.1 Oil - As of June 6, Brent oil prices increased by 4.02% to $66.47 per barrel, driven by supply risks and seasonal demand [14]. - U.S. crude oil commercial inventories decreased by 4.3 million barrels to 436.1 million barrels [14]. 2.2 Chemicals - Among 188 monitored chemical products, the top three price increases this week were for liquid chlorine (up 11.8%), natural gas (up 9.3%), and hydrochloric acid (up 4.6%) [15]. - The report notes significant monthly price changes, with hydrochloric acid increasing by 54.5% [10][15]. 3. Price and Spread Changes - The report highlights the top three products with the largest weekly spread increases: R410a spread (up 200.0%), acrylic acid butyl ester spread (up 58.2%), and PTA (up 45.9%) [10][20]. - Monthly spread changes show significant increases in the electric stone method PVC spread (up 216.9%) [10][20].

Investment Rating - The report does not explicitly provide an investment rating for the chemical industry Core Views - In May 2025, the basic chemical index increased by 2.12%, ranking 19th among primary industries, with 22 out of 32 sub-industries showing growth [2][11] - The report highlights significant price increases in hydrochloric acid (43.38%), nitrogen (19.95%), and TDI (17.10%) among other chemicals [3][26] - The report notes the successful launch of production lines in SAILUN's factories in Indonesia and Mexico, marking a significant step in the company's global strategy [4] Summary by Sections Market Overview - In May 2025, major market indices showed positive growth: Shanghai Composite Index increased by 2.09%, Shenzhen Component Index by 1.42%, and the ChiNext Index by 2.32% [11] - The basic chemical index's performance was relatively strong, with 379 companies reporting positive returns and 159 companies reporting negative returns [22] Price Movements - The top ten chemicals with the highest price increases in May 2025 included hydrochloric acid (43.38%), nitrogen (19.95%), and TDI (17.10%) [3][26] - Conversely, the chemicals with the largest price declines included TMA (-36.36%) and dichloropropane (-22.38%) [34] Sub-Industry Performance - Among the secondary sub-industries, chemical fibers led with a growth of 7.98%, followed by agricultural chemicals at 3.89% [16] - The top five performing tertiary sub-industries included polyester (19.53%) and pesticides (10.97%) [18][21] Company Performance - The report lists the top ten basic chemical companies by monthly growth, with Suzhou Longjie leading at 84.09% [23] - The bottom ten companies included Boyuan Co., which saw a decline of -22.97% [25] Industry Insights - The report discusses the stable demand for hydrochloric acid, with supply issues noted in Hunan and Fujian provinces [28] - It also highlights the impact of environmental inspections on bromine production, leading to reduced supply and increased prices [29]

Investment Rating - The industry investment rating is "Positive (Maintain)" [7] Core Views - Oil prices are experiencing fluctuations due to tariff negotiations, OPEC+ production changes, and Middle East tensions. The report emphasizes a focus on leading companies with strong fundamentals and low correlation to oil prices, suggesting bottom-fishing strategies. There is a recommendation to pay attention to domestic demand and opportunities in new material domestic substitution, particularly in the agricultural chemical sector during the spring farming season [14][16]. Summary by Sections 1. Core Views - The report highlights the importance of monitoring oil prices and related inventory levels, with U.S. crude oil commercial inventory at 443.1 million barrels, a weekly increase of 20 barrels. Gasoline inventory decreased by 4.5 million barrels to 229.5 million barrels, while distillate inventory decreased by 2.4 million barrels to 106.9 million barrels [3][16]. 2. Price Changes - Among 188 monitored chemical products, the top three price increases this week were for polymer MDI (up 6.0%), DEG (up 5.7%), and diethanolamine (up 5.7%). The largest decreases were for silicone oil (down 12.9%), DMC (down 11.1%), and natural gas (down 9.5%). Monthly price increases were led by trichloroethylene (up 16.3%), epoxy chloropropane (up 9.2%), and diethanolamine (up 7.7%) [10][17]. 3. Investment Recommendations - Recommended companies include: - Wanhua Chemical: Core product MDI shows recent profit improvement, with upcoming petrochemical and new material projects [14]. - Huangma Technology: A leading special polyether company that has entered a growth phase [14]. - Runfeng Co., Ltd.: A rare company with global formulation registration and sales channels [14]. - Guoguang Co., Ltd.: A leading domestic differentiated formulation company in the plant growth regulator sector [14]. - Hualu Hengsheng: Core product prices are recovering alongside falling coal prices, leading to continuous improvement in price differentials [15].

Group 1 - The chemical index outperformed the oil index during the week of April 21-25, with the chemical raw materials index rising by 2.26%, chemical machinery index by 3.18%, pharmaceutical index by 3.29%, and pesticide and fertilizer index by 2.78% [1] - In contrast, the oil processing index fell by 0.48%, while the oil extraction index saw a slight increase of 0.01%, and the oil trading index dropped by 2.87% [1] - International crude oil prices experienced narrow fluctuations, with WTI settling at $63.02 per barrel, down 2.57% from April 17, and Brent at $66.87 per barrel, down 1.60% [1] Group 2 - The top five performing listed chemical companies in the Shanghai and Shenzhen markets included XianDa Co. with a rise of 49.54%, Zhongxin Fluorine Materials up by 40.89%, Weike Technology up by 33.65%, Zhenhua Co. up by 33.55%, and Xinhang New Materials up by 31.20% [2] - Conversely, the five companies with the largest declines were Jinlitai down by 43.85%, Guoli Technology down by 30.11%, ST Haiyue down by 21.88%, Fanli Technology down by 21.81%, and Yida Co. down by 21.64% [2]