Huatai Securities pointed out that due to the situation in the US, Israel, and Iran, chemical products are generally rising. If the geographical situation in the Middle East stabilizes, China and the world are expected to usher in a new round of chemical inventory replenishment, driving demand growth; while the supply-side capital expenditure growth rate has declined significantly since 2025, and the combination of “reverse internal volume” and “carbon double control” is expected to help supply side adjustments and clear backward production capacity. Furthermore, since 2024, regions such as Europe, Japan, and South Korea have been in a production capacity withdrawal cycle. Catalyzed by the current global energy supply crisis, the clearance of backward overseas production capacity is expected to accelerate. Driven by supply and demand, domestic enterprises are expected to continue to increase their global share and usher in a boom cycle based on advantages such as supply chain stability.

Huatai Securities pointed out that due to the situation in the US, Israel, and Iran, chemical products are generally rising. If the geographical situation in the Middle East stabilizes, China and the world are expected to usher in a new round of chemical inventory replenishment, driving demand growth; while the supply-side capital expenditure growth rate has declined significantly since 2025, and the combination of “reverse internal volume” and “carbon double control” is expected to help supply side adjustments and clear backward production capacity. Furthermore, since 2024, regions such as Europe, Japan, and South Korea have been in a production capacity withdrawal cycle. Catalyzed by the current global energy supply crisis, the clearance of backward overseas production capacity is expected to accelerate. Driven by supply and demand, domestic enterprises are expected to continue to increase their global share and usher in a boom cycle based on advantages such as supply chain stability.