The tense situation in the energy market intensifies, and Sinopec ETF Huaxia (159731) is expected to benefit from the long-term industry prosperity boost.

As of 10:35 on April 3rd, the Petrochemical ETF Huaxia (159731) fell by 1%, with holdings in Shengquan Group, Haohua Technology, Hengyi Petrochemical, Hangyang Shares, among others, leading the gains.

On the news front, U.S. President Trump delivered a public speech on Thursday, stating that conflicts with Iran will escalate in the coming weeks, after which oil prices surged significantly. The European diesel futures benchmark price rose above $200 per barrel for the first time since 2022; in addition to tense geopolitical situations in the Middle East, the Russia-Ukraine conflict has also led to new reductions, with Ukrainian drones causing Russia’s oil exports to decrease by about 1 million barrels per day, further intensifying the global energy market tension.

CITIC Futures believes that the chemical industry follows crude oil’s wide fluctuations, with chemical plant operating rates declining. From the polyester chain perspective, the weekly PX-PTA operating rate continues to decline; the weekly production of PP and PE decreased by 4.93% and 4.19%, respectively. The downstream operation rates of polyolefins have not weakened, with weekly operating rates again showing month-on-month improvement. The situation with styrene is similar to polyester, with both its own and downstream operating rates decreasing week-on-week.

Open Source Securities believes that this geopolitical conflict is expected to add new momentum to the rise of China’s chemical industry, with the long-term industry prosperity logic continuing to strengthen. In the long term, crises accelerate the clearing of overseas production capacity, leading to a simultaneous increase in China’s chemical industry’s global market share and profit center.

The Petrochemical ETF Huaxia (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 60.19%, and oil and petrochemicals account for 32.70%, allowing for profit sharing from downstream chemical products. With the optimization of industry structure and supply-demand adjustments, the industry’s medium- to long-term narrative is improving.

Daily Economic News