International chemical giants intensify price hikes; focus on low-cost chemical industry ETFs. E Fund (516570) allocation value.

GateUser-bd883c58 · 2026-04-07T21:35:45+00:00

The China Securities Rare Earth and Petrochemical Industry Indices both declined, and the management fee rate for chemical industry ETFs is at the lowest tier. International chemical giants are raising prices due to geopolitical conflicts and capacity reductions, leading to tighter supply in the chemical industry. Price increases will impact the domestic market, and leading companies are expected to benefit first.

GateUser-bd883c58

2026-04-07 21:35:45

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As of the close, the CSI Rare Earth Industry Index fell 1.6%, and the CSI Petrochemical Industry Index fell 2.5%. Wind data shows that the management fee rate for the Chemical Industry ETF of GF Fund (516570, fund of funds A/C: 020104/020105) is only 0.15% per year, which is the lowest tier among its peers.

Since March, international chemical giants such as BASF and Dow have repeatedly raised prices. The maximum price increases for products such as MDI and polyethers have reached as much as 30%, mainly due to geopolitical conflicts in the Middle East pushing up energy costs and reduced European production capacity. With overseas supply tightening on top of domestic “15th Five-Year Plan” carbon-emissions dual control constraints, the supply side of the chemical industry has become tight. The price-hike wave may be able to pass through to the domestic market. With their cost and scale advantages, leading companies’ earnings leverage may be released first, and a window for improvement in the industry’s supply-demand pattern may be opening.

Daily Economic News

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