Institutions Bullish on Chemical Sector's "Break of Dawn" at Start of 15th Five-Year Plan; Zhong Yi Da Surges to Daily Limit

GateUser-bd883c58 · 2026-03-18T06:03:10+00:00

On March 17, the chemical sector rallied in the afternoon, with multiple stocks hitting daily limits. Analysis suggests that improved sentiment in the chemical industry is driven by commodity cycles, rising oil prices, and improved supply-demand dynamics. Regional tensions in the Middle East also serve as a near-term catalyst for market movement. It is expected that chemical resource prices will gradually improve throughout the year.

GateUser-bd883c58

2026-03-18 06:03:10

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On March 17th, the chemical sector continued to rise in the afternoon, with Zhongyida (600610.SH) hitting the daily limit-up. Taihe Shares (301665.SZ), Jinzhengda (002470.SZ), China Salt Chemical (600328.SH), Jiangtian Chemical (300927.SZ), Hongbaoli (002165.SZ), Hubei Yihua (000422.SZ), and Longbai Group (002601.SZ) also followed the upward trend.

BOC Securities pointed out that the cyclical rotation of bulk commodities, the support from rising crude oil prices, and the continuous improvement in industry supply and demand patterns together form the core logic for the upward trend of the A-share chemical industry. In the short term, the escalation of Middle East tensions pushes up oil prices, which transmits costs to chemical products and acts as a catalyst for the market; in the medium term, the logic of commodity rotation from industrial products to energy chemicals to agricultural products is being demonstrated and reinforced, supported by the domestic peak demand season; in the long term, policies to “counter internal competition” improve the supply-demand structure, leading to increased market share for leading companies and potential profit recovery. Throughout the year, the cyclical resource sector is expected to gradually expand from non-ferrous metals to the chemical sector.

Some brokerages stated that as a typical cyclical industry, chemicals usually go through a five-year cycle, experiencing four stages: “profit growth - capacity expansion - profit bottoming out - capacity clearing/ demand expectations improving.” With the slowdown in capital expenditure growth, anti-internal competition policies, overseas interest rate cuts, and expanded domestic demand, the outlook for the chemical industry during the 14th Five-Year Plan period is optimistic. Currently, the industry is at a cyclical bottom, and the improvement in supply and demand patterns may accelerate the recovery of industry prosperity.

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