Chlor-alkali sentiment gradually bottoming, Petrochemical ETF (159731) may benefit from industry's long-term profit recovery

NightAirdropper · 2026-03-21T09:10:36+00:00

As of March 20th, the Petrochemical ETF (159731) experienced a slight decline, while its holdings performed well. The chlor-alkali industry faces challenges under the carbon peak backdrop, with expectations for a short-term bottom and long-term benefits from dual carbon policies. However, the industry outlook remains positive with improved profitability anticipated.

NightAirdropper

2026-03-21 09:10:36

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As of 14:20 on March 20, the Petrochemical ETF (159731) decreased by 1%, with leading holdings including Salt Lake Shares, Three Trees, Hengyi Petrochemical, and Yajia International. In terms of liquidity, the Petrochemical ETF’s intraday trading volume exceeded 130 million yuan. The latest share count of the Petrochemical ETF reached 1.471 billion shares, with a current scale of 1.473 billion yuan.

The chlor-alkali industry’s main products are caustic soda and polyvinyl chloride (PVC), which are involved in key sectors of the national economy such as infrastructure, real estate, and chemicals. During the 14th Five-Year Plan period, a critical phase for carbon peak advancement, relevant measures have been gradually implemented to control energy consumption. The chlor-alkali industry is a high-energy-consuming sector, with high total electricity consumption and significant energy use per unit of value. Outdated facilities are gradually being phased out. By Q4 2025, profitability in the chlor-alkali sector is expected to further decline, and by 2026, outdated capacity may be eliminated.

Kainuo Securities believes that, in the short term, the prosperity of the chlor-alkali industry is gradually bottoming out. In the long term, the acceleration of mercury-free PVC and dual-carbon policies will help lift industry prosperity from its bottom.

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 61.18%, and the petroleum and petrochemical sector accounts for 31.59%. A new cycle of industry prosperity is beginning, with profit recovery and improvement expected in downstream chemical products.

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