The new chemical industry cycle begins, and opportunities for Petrochemical ETF (159731) are emerging

As of 13:35 on February 25, the Petrochemical ETF (159731) increased by 1.80%. Leading stocks include Sichuan Falong, Mongol Cang, Yuntianhua, and Hebang Biological, which saw the largest gains. In terms of net capital inflow, the Petrochemical ETF (159731) has accumulated a total net inflow of 1.239 billion yuan over the past 20 trading days. The latest share count for the ETF is 1.762 billion shares, with a current scale of 1.858 billion yuan.

Boosted by the rise in crude oil prices during the Spring Festival, chemical prices generally experienced a strong start. Looking at the most prosperous polyester industry chain, terminal companies generally resumed work earlier after the Spring Festival in 2026. According to CCF reports, Shaoxing China Textile City and Guangzhou International Textile City markets opened on the eighth and tenth days of the Lunar New Year, respectively, whereas in previous years, operations typically resumed around the fifteenth day.

According to CITIC Futures analysis, chemical products generally experienced inventory accumulation during the Spring Festival, with polyolefin two-oil inventories rising 104% compared to before the holiday; pure benzene, styrene, ethylene glycol, and other varieties also saw stockpiling. However, even with inventory buildup, the chemical industry may continue to fluctuate after the holiday, as downstream and end-user resumption of work and production are expected to support a volatile pattern while awaiting clearer demand signals.

Southwest Securities believes that from a global perspective, the chemical industry is already at the start of a new cycle of prosperity. Chinese chemical companies have grown stronger over the past few years, establishing a more solid profit foundation and greater profit elasticity.

The Petrochemical ETF (159731) and its associated funds (017855/017856) closely track the CSI Petrochemical Industry Index. According to Shenwan’s first-level industry distribution, basic chemicals account for 60.02%, and the oil and petrochemical sector accounts for 32.43%, allowing investors to share in the profit recovery of downstream chemical products. With industry structure optimization and supply-demand adjustments, the long-term narrative of the industry is improving.

Daily Economic News