The uncertainty in overseas chemical supply has increased, highlighting the advantages of the domestic chemical industry chain.

Geopolitical conflicts continue to intensify, exacerbating disruptions in the global energy and chemical supply chains. On April 2nd, the chemical industry ETF E-Fund (516570) rose by 0.64% in early trading, then experienced some fluctuations. By the close, shares of Baofeng Energy (600989.SH), China National Offshore Oil Corporation (600938.SH), Orient Shenghong (000301.SZ), China Petroleum (601857.SH), Shanghai Petrochemical (600688.SH), Salt Lake Shares (000792.SZ), and Hengli Petrochemical (600346.SH) all increased. The chemical sector showed localized strength, with the oil and gas industry leading the gains.

From an industry logic perspective, European natural gas and electricity prices have surged significantly, causing ongoing disturbances in the energy and chemical markets, greatly increasing local chemical production costs. The pace of overseas high-cost capacity withdrawals may accelerate further.

In comparison, China’s chemical industry, with its diversified raw material sources, mature alternative processes (high proportion of coal chemical industry), scale effects, and cost advantages, remains a more resilient part of the global chemical supply chain. The exit of overseas chemical capacity is expected to accelerate, which could be a long-term positive for China’s chemical market share and bargaining power globally.

To seize the long-term dividends of the chemical industry, investors can focus on the low-cost layout tool, the Chemical Industry ETF E-Fund (516570). This product focuses on core sectors such as PX-PTA-Long Fiber, benefiting deeply from the dual-carbon policy promotion and chemical price increases. It ranks first in scale among similar index products. First, it provides one-click coverage of leading companies across the petrochemical, basic chemical, and coal chemical industries; second, it has a clear fee advantage, with total management and custody fees of only 0.20% per year, significantly reducing long-term investment costs; third, its components focus on segments with continuously improving supply-demand patterns, are highly sensitive to product price increases, and have sufficient market elasticity. It can help investors easily access chemical investment opportunities.