Xin Lang Cai Jing·2025-12-30 12:05Core Viewpoint - The chemical sector has shown a significant rebound, with the Chemical ETF (516020) reaching a new high since September 2022, reflecting strong performance across various sub-sectors such as petrochemicals, polyester, phosphate chemicals, and lithium batteries [1][9]. Group 1: Market Performance - The Chemical ETF (516020) opened lower but experienced a rise, achieving a maximum intraday increase of 2.56% and closing up by 1.98% [1][9]. - The Chemical ETF's index has recorded a year-to-date increase of 41.4%, outperforming major A-share indices like the Shanghai Composite Index (18.3%) and the CSI 300 Index (18.21%) [1][9]. Group 2: Key Stocks Performance - Notable stocks within the sector include Hengyi Petrochemical, which hit the daily limit, and others like Xin Fengming and Rongsheng Petrochemical, which rose over 7% [1][9]. - Hengli Petrochemical increased by over 6%, while Jinfa Technology, Yuntianhua, and Tianci Materials also showed significant gains [1][9]. Group 3: Industry Trends - The chemical sector's strong performance is attributed to policy support and cyclical recovery, leading to a notable outperformance compared to the broader market [1][9]. - The sector's fixed asset investment growth is slowing, and the "anti-involution" policy is promoting industry self-discipline, which is expected to improve profitability levels [6][13]. Group 4: Future Outlook - The demand for lithium iron phosphate materials is expected to grow significantly, with projections indicating a global output of 5.25 million tons by 2026, a 36% increase year-on-year [4][12]. - The Chemical ETF (516020) is positioned to capture investment opportunities across various sub-sectors, with nearly 50% of its holdings in large-cap leading stocks [6][13].