High oil prices transmit to the chemical industry chain, and the Harvest Chemical ETF focuses on a new cycle of industry prosperity

GateUser-bd883c58 · 2026-03-19T04:57:40+00:00

As of March 16, 2026, the CSI Specialty Chemical Industry Thematic Index declined 3.33%. Against the backdrop of escalating US-Iran conflicts and rising global energy prices, profit margins in alternative energy directions such as coal-to-chemicals have expanded. The chemical industry is at the beginning of a new prosperity cycle, with focus on investment opportunities in resource-attributed and real estate chain chemical products.

GateUser-bd883c58

2026-03-19 04:57:40

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As of March 16, 2026, 10:24 AM, the CSI Sub-Industry Chemical Industry Index decreased by 3.33%. In terms of component stocks, gains and losses were mixed, with Sanke Tree leading the rise at 2.18%, Xinzhoubang up 0.84%, and Kaisa Biological up 0.55%; Luzhi Chemical led the decline, with Salt Lake Shares and Hongda Shares also falling.

Recently, the ongoing escalation of the US-Iran conflict and the blockade of the Strait of Hormuz have driven up global energy prices. Guotou Securities stated that in this context, the cost advantages of alternative energy routes such as coal chemical, gas-based chemical, calcium carbide PVC, and natural alkali have significantly expanded, broadening profit margins. Among these, routes like coal-to-olefins and coal-to-methanol are economically advantageous, while ethane-to-ethylene and natural gas-based ethylene glycol have increased profit elasticity due to low raw material prices. The gross profit margin of calcium carbide PVC has turned positive at 237 yuan/ton, and the unit cost of natural alkali is about 300–500 yuan/ton lower than that of soda ash, continuously strengthening the structural arbitrage logic.

Southwest Securities pointed out that from a global perspective, the chemical industry is already at the beginning of a new cycle of prosperity. Regarding raw materials, the downside potential for upstream energy commodities such as crude oil, natural gas, and coal is limited. In cyclical chemical products, focus should be on resource-based chemicals and chemical products with potential for sudden breakthroughs in the real estate chain.

Data shows that as of February 27, 2026, the top ten weights in the CSI Sub-Industry Chemical Industry Index are Wanhua Chemical, Salt Lake Shares, Zangge Mining, Tianci Materials, Hualu Hengsheng, Yuntianhua, Juhua Shares, Hengli Petrochemical, Baofeng Energy, and Rongsheng Petrochemical, accounting for a total of 45.18% of the top ten weights.

The CSI Chemical ETF (159129) closely tracks the CSI Sub-Industry Chemical Industry Index, focusing on a new cycle of prosperity amid the “anti-involution” industry environment.

Off-market investors can also pay attention to investment opportunities in the chemical sector through the Chemical ETF Connect Fund (013527).

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