Recently, the FDPE unit constructed by the Nantong Blue Island New Materials Full-Density Polyethylene Project Department of the Fifth Branch reached a critical milestone: the successful hoisting and positioning of the light-end stripper (3200-C-3201). As the first of the unit's six columns to be installed, the success of this "first lift" establishes a solid foundation for the subsequent centralized hoisting of similar equipment. It also marks the full-scale commencement of the installation phase for large-scale columns within the unit, representing a significant milestone in the overall progress of the project schedule.

Mitsubishi Chemical Group, Asahi Kasei Corporation, and Mitsui Chemicals, Inc. announced plans to establish a new joint operating entity to manage two ethylene production facilities in western Japan. As part of a comprehensive operational reform, the companies will shut down the Asahi Kasei Mitsubishi Chemical ethylene cracker in Mizushima and integrate the cracker operated by Osaka Petrochemical Industries Ltd. in Takaishi, targeting completion by the end of fiscal year 2031, or March 2032.

The overall supply pressure remains relatively high. However, domestically, only Zhejiang Jiahe has a planned new capacity of 300,000 tons in 2026, and overseas, the planned UAE project has been postponed, indicating that the supply expansion is nearing its end. On the demand side, the operating rate of finished product manufacturers is weakly stable, and the terminal demand is in the off-season, with construction sites in the north suspending work and order intake being poor. In terms of inventory, social warehouses are accumulating inventory, while factory warehouses are destocking, and the registered warehouse receipt volume remains at a high level. Regarding costs, the price of calcium carbide has rebounded slightly, with the calcium carbide method experiencing increased losses and the ethylene method experiencing reduced losses, while the chlor-alkali profit remains at a low level. From a policy perspective, the VAT export rebate for PVC will be canceled from April 1, 2026. Overall, the weak supply-demand pattern of PVC has not changed for the time being. The cancellation of the export rebate will directly increase the export cost of PVC, but before April 1, there may be a rush to export. In the medium and long term, attention should be paid to the disruption to supply caused by increased competition among upstream enterprises. In the short term, the chemical sector is collectively strengthening. For single-leg trading, a short-term bullish approach is recommended, with the 2605 contract's range referring to 4750-5000. In terms of arbitrage, attention can be paid to the 3-5 contract calendar spread.

A-share coal chemical industry concept continues to strengthen, Liuhua shares hit the daily limit, followed by Baofeng Energy, Shanxi Coking Coal, Baotailong, Xinghua Shares, Yunwei Shares, Huachang Chemical and others.

Recently, Zhenhai Refining & Chemical Co. The propylene dimerization pilot plant has successfully produced qualified 4-methyl-1-pentene product for the first time, with an average purity exceeding 98%.This marks a significant phased technological breakthrough in China's synthesis of this high-end specialty monomer. 4-methyl-1-pentene is a key monomer for synthesizing poly(4-methyl-1-pentene) (PMP), which is used to manufacture ECMO membrane oxygenators.Nuclear pore membrane material Core ingredients For a long time, the PMP resin industry chain has been firmly controlled by Japan's Mitsui Chemicals. The localization rate of 4-methyl-1-pentene is zero, leaving it 100% dependent on imports, which represents a genuine "bottleneck" technology.

Exxon Mobil announced on January 24 that it would suspend operations of some units at its Baytown, Texas refining and petrochemical complex due to expected freezing weather in the next three days. The complex, located east of Houston, includes a chemical plant, an olefins plant, and a refinery with a daily processing capacity of 564,400 barrels. The company's community alert did not specify the scope of the shutdowns, but the cold snap could lead to a short-term tightening of energy supplies in the region. As one of the largest refining bases in the United States, the complex experienced a complete shutdown in 2022 due to a winter storm, which then caused a 3% disruption to the nation's refining capacity.

January 27th report. Heng Hui Security During investor relations activities, the company stated that its "4,800-ton annual ultra-high molecular weight polyethylene fiber project" has made substantial progress, with 2 production lines achieving stable mass production and successfully completing the first batch of order deliveries. The remaining production lines are being accelerated for installation and commissioning. Of the company's planned new total capacity of 12,000 tons, the remaining 7,200 tons of capacity will be dynamically adjusted and initiated opportunistically based on the overall strategic rhythm and market demand, ensuring that capacity release is precisely matched with market demand.

Recently, the 150,000 tons/year autoclave process project for Shaanxi Yanchang China Coal Yulin Energy & Chemical Co., Ltd. (referred to as "Yuchenghua"), EPC contracted by Beijing Petrochemical Engineering Co., Ltd. (referred to as "BPEC").EVAThe kick-off meeting for the supporting facilities and system engineering of the EVA project was successfully held, marking the official entry of the project into the comprehensive implementation phase. Shaanxi Yanchang Zhongmei Yulin Energy Chemical Co., Ltd. plans to build a 150,000 tons/year autoclave EVA unit (the EVA unit can produce four products, including EVA, EnBA, EMAA, and LDPE, with the capacity of a single product not exceeding 150,000 tons/year, which can be switched according to market demand, and the total capacity of different product combinations is 150,000 tons/year) on the reserved open space in the existing plant area. Other auxiliary facilities include: packaging plant, circulating water field, ground flare, peroxide warehouse, 2# general substation, tank farm and central control room renovation, etc.

  On January 23rd, butadiene rubber (BR) continued to hit the daily limit in early trading, currently up 6.99%. A research report from Guotai Junan Futures on January 23rd indicates that in the short term, capital flow determines capital price. Against the backdrop of a macro narrative of incremental capital allocating to the chemical sector, butadiene and butadiene rubber are expected to remain strong in the short term. There are two main reasons: first, in the presence of substitution demand within the rubber sector, overall synthetic rubber industry spot transactions remain neutral, maintaining high apparent demand for synthetic rubber; second, butadiene's strong short-term fundamentals are driving up the cost of synthetic rubber. On the butadiene raw material side, butadiene currently presents a strong reality and strong expectations. On the supply side, ethylene cracking operating rates in China remain high, and domestic butadiene production is at a high level compared to recent years. On the other hand, ethylene plants are facing pressure on profits, limiting operating rates in the Asian region. As a result, supply is contracting, and rising international butadiene prices are driving China's butadiene prices higher. On the demand side, synthetic rubber maintains high demand for butadiene due to high production profits, while ABS and SBS demand for butadiene remains stable. Overall, butadiene's short-term fundamentals are neutral to strong, providing support for spot prices. On the butadiene rubber side, apparent demand remains high, and there are no significant contradictions in the fundamentals, mainly fluctuating following the cost side.

PVC continuous main futures contract rose 1% during the day, now trading at 4874.00 yuan.

Recently, the RongSheng Energy Technology (Inner Mongolia) Co., Ltd. Green Coal Chemical Integration Project officially commenced construction in the West Industrial Zone of the Dalu Industrial Park, Jungar Banner, Ordos City. Jointly invested by RongSheng Group, ManShi Group, and Jungar Banner GuoXing Group, the project has a total investment of approximately 160 billion yuan, covers an area of 28 square kilometers, and is a leading comprehensive benchmark project in the domestic coal chemical industry. Centered on building a "coal-chemical-new materials" full industry chain, the project plans to convert 35 million tons of raw coal annually, forming a production capacity of 6.5 million tons of coal-based new materials per year. The product system covers more than 20 kinds of high-end chemicals and new materials such as polyolefins, specialty rubber, and carbon fiber, which will be widely used in high-end manufacturing fields. In addition, the project is equipped with a 4 billion cubic meter coal-to-natural gas plant and ultra-high voltage power grid facilities to achieve the coordinated development of new material production and clean energy output.

The core dynamic of Sinochem Quanzhou's 450,000 mt/year styrene monomer (SM) unit is the early conclusion of its maintenance (the unit underwent an unplanned shutdown starting in December 2025, with the original maintenance schedule lasting until late February 2026). The restart is now significantly ahead of the previous late-February plan and is scheduled for January 25. The synchronized supporting benzene unit has completed its maintenance; it is expected that load rates will gradually increase after the restart, with the units anticipated to reach full capacity in February.

On January 22nd, the main continuous contract for styrene rose 2% intraday, now trading at 7542.00 yuan.

Recently, the construction bidding announcement for Civil Construction Section 2 of the Refining and Chemical Main Unit (Chemical Section 5) of the Yulong Island Refining and Chemical Integration Project (Phase I) was released. The scope of the tender includes civil construction works such as reaction dams, compressor buildings, and low-circulation frames (excluding commercial concrete, with materials and machinery provided by subcontractors who bear the costs). This project, invested by Shandong Yulong Petrochemical Co., Ltd., is a 20 million tons/year refining and 3 million tons/year ethylene integrated project, covering an area of 368,600 m2, with a total investment of approximately RMB 125.4 billion. The entire project is divided into 21 units. Sinopec Jilin Chemical Construction Co., Ltd. is responsible for the construction of Chemical Bid Section 5 (one set of 200,000 tons/year EVA/LDPE kettle-type plant), with a planned start-up date of December 30, 2027.

  January 21st news, according to Longzhong Information today: Tangshan Xuyang's 300,000 tons/year styrene unit shut down due to a malfunction, mainly sending contracts from inventory, and will not be quoted externally today.

Recently, China Petroleum & Chemical Corporation Shanghai Petrochemical Company Limited (Shanghai Petrochemical) announced a forecast of losses for its 2025 performance. It is estimated that the net loss attributable to equity holders of the Company will be approximately RMB 1.289 billion to RMB 1.576 billion, and the estimated net loss attributable to equity holders of the Company after excluding non-recurring gains and losses will be approximately RMB 1.280 billion to RMB 1.564 billion.

According to CPRJ on January 21st, Vioneo, a subsidiary of AP Møller Holding, has abandoned its €1.5 billion plan to build a green polyolefin project in Antwerp, Belgium, and instead plans to build its first commercial-scale plant in China. Judy Hicks, Vice President of Corporate Affairs at Vioneo, told Chemical Week on January 20th that a specific location in China has not yet been selected, adding that the company made the decision to change the project location at the end of 2025.

January 16th News: Recently, the polyethylene unit intelligent virtual factory project, jointly developed by SUPCON Technology and Sinopec Research Institute of Petroleum Processing, successfully completed its handover at the Daqing Petrochemical Research Center. The project's construction tasks were completed on schedule and smoothly, with engineering quality, safety, and progress controlled throughout. It has officially transitioned from the engineering construction phase to the system joint debugging, testing, and trial operation phase. This marks a significant breakthrough for "AI+Meta-factory" technology in the field of high-end petrochemical material research and development, injecting strong momentum into PetroChina's "Digital Intelligence Petroleum" construction.

January 16th News: Dai Houliang, Secretary of the Party Group and Chairman of China National Petroleum Corporation (CNPC), announced that the second phase of CNPC Dushanzi Petrochemical Tarim 1.2 million tons/year ethylene project will be fully completed and put into operation in 2026. The equipment localization rate for this project exceeds 98%, with major equipment such as ethylene three machines with all-electric drive and extrusion pelletizing units achieving domestic production for the first time. The project aims to create a zero-carbon petrochemical industrial park through a "blue hydrogen to blue ammonia + carbon dioxide to urea" green production and carbon dioxide utilization model.

On January 15th, Baofeng Energy (600989.SH) released its preliminary announcement of increased annual performance for 2025. According to the announcement, based on preliminary calculations by the finance department, the company expects to achieve net profit attributable to shareholders of the listed company of 11 billion to 12 billion yuan in 2025, an increase of 4.662 billion to 5.662 billion yuan year-on-year, representing a year-on-year increase of 73.57% to 89.34%. At the same time, the company expects to achieve net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses of 11.2 billion to 12.2 billion yuan in 2025, an increase of 4.420 billion to 5.420 billion yuan year-on-year, representing a year-on-year increase of 65.19% to 79.94%. Baofeng Energy stated that during the reporting period, the company's Inner Mongolia olefin project was put into production, and the production and sales volume of olefin products increased significantly year-on-year, which is the main reason for the expected increase in performance this period.