According to the latest research report by Huatai Securities, the chemical industry continues to grapple with a weak overall price spread, attributed to sluggish demand and the commissioning of new capacities. Nonetheless, the report anticipates a cyclical recovery for chemicals in the second half of 2025, driven by demand recovery, a slowdown in capital expenditure, and autonomous supply-side adjustments. In the near term, oil prices are swayed by concerns over demand and weakened supply coordination, yet cost reductions and demand improvements bode well for the sustained recovery of downstream segments. Looking ahead to the medium to long term, oil prices are expected to find a bottom support, while leading enterprises aim to achieve growth through cost reduction measures. For bulk chemicals, focus should shift to industry structure optimization and the value restoration of leading enterprises. Downstream product and fine chemical demand has shown signs of improvement, gross profit margins have recovered, and these segments are being fueled by exports and new technologies. High-quality, asset-heavy chemical enterprises are anticipated to witness an improvement in cash flow, which could lead to an increase in their dividend payout willingness.