Huatai Securities: Industry Prosperity Expected to Rise in 2026 as Petrochemical Supply Continues to Optimize

People’s Financial News, March 18 — Huatai Securities pointed out that at the end of February 2026, the CCPI raw material price spread was 2,470, the lowest percentile since 2012. As corporate capital expenditure gradually decreases, supply in the petrochemical industry is expected to improve gradually. The products priced higher in February were mainly driven by tight supply and strong willingness of leading companies to raise prices. It is believed that industry profits have bottomed out in recent years. Under policies such as “anti-involution,” supply-side adjustments are expected to accelerate, and profits for bulk chemicals may improve. In the medium to long term, driven by the exit of high-energy-consuming facilities in Europe and the U.S. and increased demand from economic growth in Asia, Africa, and Latin America, exports have become an important growth engine for the domestic chemical industry. Industry capital expenditure growth has been declining since June 2025, and with supply-side optimization, the industry’s prosperity is expected to rise in 2026.