The logic in the chemical industry continues to strengthen. The chemical industry ETF, E-fangda (516570), has seen net inflows of over 33 million yuan in the past 5 days. The Middle East market is expected to become a new growth blue ocean for domestic chemical companies.

As of 2026-04-02 09:46, the CSI Petrochemical Industry Index (H11057) rose by 0.25%, the E Fund chemical industry ETF (516570) rose by 0.09%, and trading volume was 33.50 million yuan.

As of April 1, the E Fund chemical industry ETF (516570) saw an increase of 47.86 million yuan in size over the past 1 week, and an increase of 16.00 million shares over the past 1 week, achieving significant growth. In terms of capital inflows, over the past 5 trading days, the E Fund chemical industry ETF (516570) accumulated a total of “33.64 million yuan” in inflows.

Industry insiders point out that the domestic urea market in China is currently locked in a fierce game between supply and demand. With manufacturers supported by pending orders, inventory pressure is not high, and their sentiment to hold firm on prices is relatively strong. In the short term, as temperatures rise, procurement demand driven by just-need purchases in agriculture and industry is set to increase; however, under supply pressure, the urea market may continue to see range-bound fluctuations, with expectations of price increases in some local areas.

Orient Securities believes that in the short term, TACO is unlikely to change the supply-demand gap, and the chemical sector outlook will mainly be driven by product prices rising beyond expectations due to tightening supply. In the medium term, as competitive advantages improve and industry trends open up, performance will be driven by further differentiation in chemical competitiveness between China and overseas, as well as the pull from the new energy industry trend. Looking at the long term, the Middle East is expected to become a new blue ocean for China’s chemical companies, and Chinese enterprises could gain very significant development opportunities there.

The E Fund chemical industry ETF (516570, OTC connection A/C: 020104/020105) bundles leading “three barrels of oil” players and Wanhua Chemical, among others, from the petroleum and petrochemical and basic chemical industries in one click. It tracks the CSI Petrochemical Industry Index, whose constituent composition is close to the “dumbbell strategy” targets in the petrochemical and chemical sector, while also covering high-dividend + high-growth component stocks. Since 2023, its performance has remained ahead among comparable chemical industry indices.

The E Fund chemical industry ETF (516570) charges a management + custody fee rate of 0.15% + 0.05% per year, which is significantly lower than similar ETF products in the petrochemical and chemical sector. The lower fee rate can effectively reduce investors’ cost outlays, enabling a more cost-effective approach to positioning for favorable development opportunities as supply and demand across the petrochemical and chemical industries move toward a positive resonance!