The polyester filament inventory clearance is nearing its end, and a rebound in the chemical sector is expected.

On March 25, the chemical sector experienced a rebound. The main drivers were the continued destocking of downstream polyester filament inventories and an improving outlook for production and sales. Overall sector activity increased, and signs of capital deployment appeared. As of 14:18 on March 25, Hengli Petrochemical (600346.SH), Dongfang Shenghong (000301.SZ), and Hengyi Petrochemical (000703.SZ) rose over 5%, while Rongsheng Petrochemical (002493.SZ), Zhongfu Shenying (688295.SH), and Zhejiang Longsheng (600352.SH) also advanced, leading the gains. China Chemical Industry ETF by E Fund (516570) also strengthened, becoming a high-quality target for capturing industry recovery opportunities.

At the industry level, multiple positive signals have accumulated, and recovery momentum continues to build. Since March, high volatility in oil prices has impacted the procurement pace of downstream chemical companies. Many are mainly consuming existing inventories, and market sentiment remains cautious. Notably, at the beginning of the year, polyester filament producers had already implemented significant production cuts and price support measures. Coupled with pre-holiday procurement driven mainly by immediate needs, most downstream companies’ inventories are currently maintained at a low level of about one month. As the “Golden Three, Silver Four” peak consumption season advances, it is expected that by the end of March downstream inventories will be nearly exhausted. Polyester filament production and sales are likely to see a substantial improvement. With low inventories, filament profitability is expected to gradually improve.

Meanwhile, as a core area of China’s resource-to-manufacturing “re-inflation,” the petrochemical and chemical industry is entering a fundamental window for strategic deployment: declining long-term fixed-asset investment and capacity cycle topping out create space for profit realization; the “14th Five-Year Plan” dual control policies on carbon emissions are gaining momentum, restricting capacity for high-energy-consuming enterprises, thus benefiting the supply side first; industry “anti-inflation” measures and steady growth policies are being promoted in coordination, further accelerating the recovery; with overseas demand rebounding and capacity reductions ongoing, exports are expected to grow in volume and price simultaneously, leading to a reshaping of valuation for China’s chemical industry; against the backdrop of transitioning from old to new growth drivers, new chemical materials are injecting fresh vitality into industry demand.

Currently, the recovery trend in the chemical sector is clear, and the value of allocation continues to stand out. The E Fund Chemical Industry ETF (516570) can precisely seize industry opportunities. This ETF focuses on the benefits of dual-carbon policy dividends and the core sectors driving chemical product price increases. It mainly covers cyclical sectors such as PX-PTA-polyester filament, with a latest scale of RMB 2.3 billion, ranking first among ETFs tracking the same index, with notable product advantages. First, it allows one-click exposure to leading companies in petrochemical, basic chemical, and coal chemical sectors, covering the entire industry chain. Second, its fee structure is highly competitive: management and custody fees total only 0.20% per year, significantly lower than similar products, effectively reducing investors’ holding costs. Third, the index components focus on sub-sectors with clear supply-demand improvements, are highly sensitive to price increase expectations, and offer strong elasticity, providing investors with a convenient one-click allocation channel.