Huatai Securities: The high prosperity of the PX industry in 2026 may continue, and domestic leading companies in the petrochemical industry are expected to benefit.

Huatai Securities research report indicates that the concentration of China's PX industry is relatively high, with a CR5 based on equity capacity calculations reaching 62% as of November 2025. The main companies and capacities include Rongsheng Petrochemical with 6.8 million tons, Sinopec with 6.11 million tons, Hengli Petrochemical with 5.2 million tons, PetroChina with 4.77 million tons, and a certain factory in Lianyungang with 4 million tons. In addition, Tongkun Corporation, holding a 20% stake in Zhejiang Petrochemical, has an equity capacity of 1.96 million tons. Considering no clear PX new capacity in China in 2026, the stimulus of the Fed rate cuts on the global macroeconomy and travel demand may gradually show, potentially impacting the PX unit load with an increase in overseas gasoline and diesel price differentials. Huatai Securities believes that the supply and demand of PX domestically and internationally in 2026 may remain in tight balance, and the industry's high prosperity is expected to continue. Integrated leading enterprises with PX capacity are expected to benefit.