China Galaxy Securities released a research report saying that on the cost side, Brent crude oil prices are expected to maintain a wide range of medium to high levels in the short term. On the supply side, on the one hand, the pace of capital expenditure in China's chemical industry has been cautious in recent years, and production capacity under construction and stock will gradually be digested; on the other hand, domestic supply-side self-regulation restrictions have been strengthened, and backward overseas production capacity has been cleared up at an accelerated pace, and the supply side is expected to shrink. On the demand side, domestic switching between old and new kinetic energy continues to advance, overseas orders are gradually returning to the country, and demand for chemicals can be expected to grow. The bank believes that supply-side contraction and demand-side momentum are expected to help the chemical industry to prosper, and it is recommended to focus on flexible investment opportunities in related cycles.

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