The firefighting foams are mixture of air, water, and concentrates that suppress fire by forming a layer that shield between fuel/source and oxygen. Significant increase in fire related accidents especially in the oil & gas industry surges demand for efficient safety measures such as firefighting foam, which drives the market growth. Furthermore, stringent rules & regulations by government that mandate fire safety measures also boosts the demand for firefighting foam acting as driving factor for market growth. However, rise in awareness toward presence of PFOS and PFAS in firefighting foam contaminating drinking water sources have led to introduction of acts and laws that restricts the usage of fluorine-based firefighting foam use, which hampers the market growth. Meanwhile, R&D activities regarding fluorine-free firefighting foam is expected to offer lucrative opportunity for industry growth.

Expanded polypropylene foam is an environmentally-friendly product, it can be recycled easily, and is 100% non-toxic. Recycling of polypropylene is emerging as an important, and economically viable option on a large scale. The recycling process involves five steps, namely collection, sorting, cleaning, reprocessing by melting and producing new products from recycled PP. Thus, the first three steps are the same as recycling most other commodities. However, the last two are critical. In the reprocessing phase, collected PP products are fed into an extruder, where it is melted at 2,400 °C and cut into granules. These pellets are then ready for use in the production of new products.  Efforts to improve polypropylene recycling have been ongoing which will aid the EPP foam market to expand during the forecast timeframe. Nextek Ltd, a UK-based plastic design and recycling consulting company has invented an innovative process to decontaminate food grade polypropylene for reuse in a closed loop back into food packaging. The Nextek developed process involves two steps: The first phase involves melting PP at nearly 250 °C to get rid of contaminant molecules. The second and last step includes removing residual molecules during under vacuum and solidification at about 140 °C. The products made following this process can be blended with virgin PP at a rate up to 50%.

2020年上半年行业营收保持微增。SW化工板块（剔除SW石油化工） 2020H1实现营业收入9304.67亿元。上半年化工品价格出现较大程度下滑， 但由于2016-2018年化工景气周期内新增在建产能逐步转固转产，量增价减 带动行业营收同比微增0.3%。

阿里全网：8 月护肤同比增长 23%。2020 年 8 月美容护肤/美体/精油品类 GMV 为 141.1 亿元，同比+23%，8 月淡季增速环比下降 10pct。 分品类看：乳液面霜、面部精华增速快。乳液面霜、面部精华同比+57%、5 4%，洁面、化妆水 GMV 同比增长超 30%。面部精华、化妆水、乳液面霜、眼 部护理维持升级趋势。

基础化工板块 Q2 恢复增长趋势，上半年整体业绩触底反弹。上半年行业整体营收同比-0.53%，基本恢复到去年同 期水平，其中 Q2 同比大幅转正为 5.71%。上半年行业整体归母净利润同比-13.46%，受疫情和油价双重冲击较为明显， 其中 Q2 同比-0.42%，行业整体触底反弹开始复苏的趋势较为明显。

20H1 化妆品行业恢复速度优于社零，线上渠道高增长支撑多数龙头经 受住疫情考验，Q2 普遍展现良好复苏态势，建议积极关注行业各环节 优质龙头。

我们的投资主线可以分为传统和新材料两条主线，传统主线中我 们建议关注低估值优质龙头（产业链一体化）及近消费端细分领域（钛 白粉、高倍甜味剂），新材料主线中建议关注国产替代的优质子行业（胶 粘剂行业、碳纤维、半导体材料、尾气处理材料等）。基于行业整体现 状，我们维持基础化工行业“中性”评级。

2020 年 8 月份中信基础化工行业指数上涨 3.20%，在 30 个中信一 级行业中排名第 12 位。子行业中，氨纶、纯碱和聚氨酯板块表现居前。 主要产品中，8 月份化工品整体较 7 月份有所上涨，上涨品种数量大 幅下降，下跌品种数量有所下降。上涨品种中，碳酸二甲酯、纯碱、 TDI、维生素 D3、聚合 MDI 涨幅居前。9 月份的投资策略上，建议关注 钛白粉、纯碱和 MDI 产业链。