Organic silicon supply growth rate peaks, Petrochemical ETF (159731) may benefit from the chemical industry recovery

As of 13:40, the Petrochemical ETF (159731) increased by 0.19%, with leading holdings including Huayu Hengsheng, Yangnong Chemical, Wanhua Chemical, and Hengli Petrochemical. In terms of net capital inflow, the Petrochemical ETF (159731) has seen a total net inflow of 1.095 billion yuan over the past 20 trading days. The latest share count for the ETF is 1.752 billion shares, with a current scale of 1.874 billion yuan.

On the news front, by 2025, no new capacity will be added to China’s methylchlorosilane (DMC) industry, and combined with ongoing overseas capacity reductions, supply growth has officially peaked. On the demand side, emerging sectors such as new energy vehicles and photovoltaics continue to grow rapidly, coupled with increased export volumes, significantly improving the industry’s supply and demand balance. Against this backdrop, leading industry companies have convened a development seminar, reaching agreements on dynamic pricing mechanisms and production cuts for silicone products, helping industry profits enter a recovery cycle.

Huatai Securities believes that by 2026, the chemical industry’s prosperity will be driven by both cyclical and growth factors, resonating upward.

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

Daily Economic News