Bank of China Securities: Chemical Sector Presents Configuration Window

GateUser-bd883c58 · 2026-03-15T19:57:55+00:00

BOC Securities believes that, influenced by the rotation of the commodity cycle, rising oil prices, and improved supply and demand dynamics, the A-share chemical industry is about to enter a window of opportunity for allocation. In the short term, the situation in the Middle East is driving up oil prices; in the medium term, the peak season of domestic demand supports prices; in the long term, policy improvements that enhance the supply and demand landscape are expected to promote a recovery in industry profits.

GateUser-bd883c58

2026-03-15 19:57:55

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China Securities: Chemical Sector Enters Allocation Window

China Securities pointed out that the inevitable trend of commodity cycle rotation, the upward support from crude oil prices, and the continuous improvement in industry supply and demand patterns together form the core logic for the upward movement of the A-share chemical industry. In the short term, the situation in the Middle East pushing up oil prices and cost transmission to chemical products act as catalysts for the market; in the medium term, the logic of commodity rotation from industrial products to energy and chemicals to agricultural products is being demonstrated and strengthened, supported by domestic demand peak seasons; in the long term, policies to “counter internal competition” improve supply and demand patterns, leading to increased market share for leading companies and potential profit recovery. The market for cyclical resource commodities this year is expected to gradually expand from non-ferrous metals to the chemical sector.

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