Dye prices are expected to rise strongly, and silicone costs continue to rise.

> The latest CITIC Chemical Industry Prosperity Index we monitor is 26.70, which was 15.91 last week. The prosperity index has rebounded, and inventory replenishment continues. According to the operating rules of the inventory cycle, we judge that this round of inventory recovery is expected to last until April, which is conducive to secondary market risks. Preferences pick up. Last week, the secondary market basic chemicals index (CITIC) rose 2.07%, and the Shanghai Composite rose 1.80%. Oil prices remained stable. Brent settled at US$56.72/barrel on Friday, down 0.16% on the week. Currently, oil prices are still facing pressure from the increase in the number of US shale oil rigs, and oil prices will continue to be under pressure in the near future. The number of oil rigs in the United States in the week of February 10 was 591, an increase of 8 from the previous month and an increase of 17 from the previous value. Since oil prices have led the number of rigs for about three months, we predict that the number of U.S. crude oil rigs is expected to continue to rise in the near future.

Focus on dyes, soda ash, agrochemical sector (pesticides, urea), silicone, OLED materials, and titanium dioxide.

The dye peak season is approaching, industry inventories are low, and stricter environmental protection is expected to lead to a contraction in production capacity. Leading companies have jointly raised prices, and dye prices are expected to rise strongly.

The inventory of soda ash rebounded after the festival and the price fell slightly. However, the inventory is expected to be digested after the Lantern Festival as downstream workers resume work.

The price of urea in the agrochemical sector continues to rise, tariffs on chemical fertilizers have been removed, and the spring plowing season is approaching, so prices are expected to continue to rise.

As the prices of upstream raw materials fall, glyphosate has fallen back. The quotation in East China is 24,000 yuan/ton. We are optimistic about the stock replenishment market of glyphosate. The cost of silicone has increased. Recently, Jiangxi Xinghuo has begun maintenance and Dow Corning Wacker has stopped its operations. Prices are expected to continue to rise. The OLED industry chain is optimistic about the long term. Supply-side reform will accelerate the clearance of titanium dioxide production capacity. At the same time, we are optimistic about companies with good performance and extending into agrochemical services. Tetrafluoroethane (East China): The quotation of tetrafluoroethane in East China this week was 22,500 yuan/ton, with a weekly increase of 12.5%; from the upstream point of view, the price of raw material hydrofluoric acid continued to rise strongly, and tetrafluoroethane manufacturers due to secondary The hydrochloric acid produced expanded the warehouse and the load declined. High costs and declining market supply have driven up the price of tetrafluoroethane; from a downstream perspective, the traditional peak season for air-conditioning sales is coming from March to June. Domestic air-conditioning inventories are generally low, and downstream purchases will gradually increase. Rising demand will drive up the price of tetrafluoroethane. rise. Ammonium chloride (Shaanxi): The price of ammonium chloride in Shaanxi this week was 550 yuan/ton, with a weekly increase of 12.24%. From the supply side, domestic manufacturers mostly control ammonium chloride by temporarily not accepting orders and waiting to purchase. Shipments have made the supply of ammonium chloride tight; from the demand side, the arrival of spring has increased demand, and the rise in urea prices has also boosted the rise in ammonium chloride prices. Supply and demand work together to promote the rise in ammonium chloride prices. East China): The quotation price of tetrafluoroethane in East China this week is 22,500 yuan/ton, with a weekly increase of 12.5%; from an upstream perspective, the price of raw material hydrofluoric acid continues to rise strongly, and tetrafluoroethane manufacturers have expanded their inventories due to the by-product hydrochloric acid. The load has declined. High costs and declining market supply have driven up the price of tetrafluoroethane; from a downstream perspective, the traditional peak season for air-conditioning sales is coming from March to June. Domestic air-conditioning inventories are generally low, and downstream purchases will gradually increase. Rising demand will drive up the price of tetrafluoroethane. rise. Ammonium chloride (Shaanxi): The price of ammonium chloride in Shaanxi this week was 550 yuan/ton, with a weekly increase of 12.24%. From the supply side, domestic manufacturers mostly control ammonium chloride by temporarily not accepting orders and waiting to purchase. Shipments have made the supply of ammonium chloride tight; from the demand side, the arrival of spring has increased demand, and the rise in urea prices has also boosted the rise in ammonium chloride prices. Supply and demand work together to promote the rise in ammonium chloride prices. Rising; from a downstream perspective, the traditional peak season for air-conditioning sales from March to June is approaching. Domestic air-conditioning inventories are generally low, and downstream purchases will gradually increase. Rising demand will drive up the price of tetrafluoroethane. Ammonium chloride (Shaanxi): The price of ammonium chloride in Shaanxi this week was 550 yuan/ton, with a weekly increase of 12.24%. From the supply side, domestic manufacturers mostly control ammonium chloride shipments by temporarily not accepting orders and waiting to purchase, which makes the supply of ammonium chloride tight; from the demand side, the arrival of spring has led to an increase in demand, and the rise in urea prices has also It has a boosting effect on the rise in ammonium chloride prices. Supply and demand work together to promote the rise in ammonium chloride prices.