The breakthrough in spot-futures linkage technology leads to a major surge in the chemical fiber sector! The latest list of high-growth potential stocks is here.

On the morning of March 12, the chemical fiber sector performed actively, with Zhongfu Shenying hitting the 20% limit-up, and Jilin Chemical Fiber, Sanfangxiang, Taihe New Materials, and Wanwei High-tech all closing at the daily limit. Jilin Carbon Valley rose over 10%, while Shuangxin Materials, Montai High-tech, Tianfulong, and other stocks also followed the upward trend.

Market insiders pointed out that the continued strength of the chemical fiber sector results from multiple factors resonating together: a strong rebound in crude oil prices, linked rises in futures markets, concentrated price hikes of leading products, breakthroughs in high-end technology, and more. The industry’s prosperity may be approaching a phased turning point.

Oil Price Rebound Boosts the Link Between Futures and Spot Prices in the Chemical Fiber Sector

As the core upstream raw material in the chemical fiber industry chain, fluctuations in crude oil prices directly determine the cost center of chemical fiber products.

Although members of the International Energy Agency agreed to release 400 million barrels of strategic oil reserves, international oil prices did not fall but rose instead. U.S. and Brent crude oil both closed up about 5% yesterday, and today they continued to surge over 8%, with Brent returning to the $100 mark.

Stimulated by the sharp rise in oil prices, domestic energy and chemical futures sectors saw widespread gains in yesterday’s night trading. This morning, a surge in limit-up hits again, with main contracts for PTA, PX, bottle chips, polypropylene, plastics, and PVC all hitting the daily limit. Crude oil, fuel oil, short fibers, and methanol also surged to the limit.

The strong performance of chemical futures has driven the polyester industry chain to strengthen across the board, forming a link between futures and spot markets, directly igniting bullish sentiment in the A-share chemical fiber sector.

According to CCTV News, early on the 12th, officials at a southern Iraqi port reported that two foreign oil tankers were attacked and set on fire within Iraq’s territorial waters. The attack occurred at Umm Qasr port, located about 50 kilometers south of the southern port city of Basra, on the western coast of Zubair Bay. Preliminary investigations indicated that a speedboat loaded with explosives launched the attack on the tankers.

Leading Companies’ Price Hikes Release Profit Potential

Against the backdrop of rising crude oil costs, prices of polyester raw materials such as PX, PTA, and ethylene glycol have also strengthened, gradually passing through to downstream products like polyester filament yarn and polyester short fibers.

Multiple industry reports show that as of March 9, domestic PTA prices exceeded 6,500 yuan/ton, spot PX prices surpassed $1,300/ton, and ethylene glycol prices rose to 4,800 yuan/ton. Polyester filament yarn prices reached 9,800 yuan/ton, up 38.03% from February 28; polyester short fiber prices hit 8,655 yuan/ton, an increase of 30.15%.

Business Society data indicates that on March 12, the benchmark price for polyester POY was 8,756.25 yuan/ton, a 21.83% increase from the beginning of the month (7,187.50 yuan/ton).

Huatai Securities’ research report pointed out that disruptions in shipping through the Strait of Hormuz have heightened concerns over crude oil supply interruptions, leading to widespread increases in prices of naphtha, ethylene, and other basic chemicals, as well as downstream plastics and fibers.

Meanwhile, domestic chemical industry expansion cycles are nearing their end, with excess capacity being rapidly phased out. Coupled with overseas high energy costs causing continued capacity shutdowns, the supply-demand landscape continues to improve, providing core support for the sector’s strength.

China Achieves Major Breakthrough in High-End Fiber Technology

Besides price increases, technological breakthroughs are also key catalysts for sector enthusiasm.

On March 11, China National Building Material Group held a press conference announcing that its subsidiary, Zhongfu Shenying, has achieved breakthroughs in ultra-high-strength carbon fiber engineering technology and officially launched China’s independently developed SYT80 (T1200 grade) ultra-high-strength carbon fiber.

This product is currently the highest strength grade of carbon fiber produced at a scale of hundreds of tons globally, marking China as the first country to achieve mass production of this level of carbon fiber at such scale, representing a significant leap in ultra-high-strength carbon fiber manufacturing.

Chen Qiufei, director and general manager of Zhongfu Shenying and head of the SYT80 carbon fiber R&D, explained that mass production at the hundred-ton scale means this cutting-edge new material will become a “standard item” serving the global economy. Its extremely low density and ultra-high strength will make domestically produced large aircraft lighter and safer, improve space launch efficiency, and extend deep space exploration boundaries. It will also provide more reliable “bones” for industries like hydrogen storage and transportation, low-altitude economy, and embodied intelligence, enabling longer-range electric vehicles, lighter and more durable medical devices, and better sports equipment.

Multiple Chemical Fiber Stocks Expected to See High Growth in Performance This Year

According to Oriental Fortune Industry Sector data, nearly 30 stocks in the A-share market belong to the chemical fiber sector, with a total market value exceeding 300 billion yuan. Huafeng Chemical, Zhongfu Shenying, and Xin Fengming are the top three in terms of size.

In terms of market performance, since the beginning of the year, over 70% of chemical fiber stocks have seen their share prices rise, with an average increase of about 10%. Stocks like Taihe New Materials, Xinxiang Chemical Fiber, Wanwei High-tech, and Zhongfu Shenying have all gained over 30% in the period.

Data from Oriental Fortune Choice shows that, based on consensus forecasts from two or more institutions, 10 chemical fiber stocks are expected to see performance growth of over 30% this year. Notably, institutions predict that Shenma Shares will turn profitable by 2026, Taihe New Materials’ net profit may more than double, and Jilin Chemical Fiber and Zhongfu Shenying are both expected to see their net profits double.

(Article source: Oriental Fortune Research Center)