According to the CITIC Construction Investment Securities Research Report, chemicals are gradually entering the peak season, focusing on sectors and individual stocks that improved month-on-month in the third quarter. After experiencing downstream inventory removal in April and May, the current downstream inventory is low. The apparent demand for the transition from inventory removal to normal procurement will improve, and the actual demand from September to October will also be high. However, considering that oil prices are still in a period of high prices and high volatility, downstream will not be too willing to make up stocks, maintaining the view that weak stocks will be replenished this fall. In the long run, leading chemical companies are already excellent at the bottom of the cycle and have sufficient value, but in the short term, they still face the risk of a month-on-month decline in performance due to a high base in the second quarter and weak inventory replenishment in the third quarter. The proposal focuses on industries and individual stocks that are expected to see further upward results in the third quarter, including: overseas refined oil products, fluorochemical refrigerants that have risen sharply in volume and price, potash fertilizer with new production capacity that continues to be released, and tires with a significant decline on the cost side.

According to the CITIC Construction Investment Securities Research Report, chemicals are gradually entering the peak season, focusing on sectors and individual stocks that improved month-on-month in the third quarter. After experiencing downstream inventory removal in April and May, the current downstream inventory is low. The apparent demand for the transition from inventory removal to normal procurement will improve, and the actual demand from September to October will also be high. However, considering that oil prices are still in a period of high prices and high volatility, downstream will not be too willing to make up stocks, maintaining the view that weak stocks will be replenished this fall. In the long run, leading chemical companies are already excellent at the bottom of the cycle and have sufficient value, but in the short term, they still face the risk of a month-on-month decline in performance due to a high base in the second quarter and weak inventory replenishment in the third quarter. The proposal focuses on industries and individual stocks that are expected to see further upward results in the third quarter, including: overseas refined oil products, fluorochemical refrigerants that have risen sharply in volume and price, potash fertilizer with new production capacity that continues to be released, and tires with a significant decline on the cost side.