Chemical industry ETFs rise against the trend, with electrolytes and membranes performing strongly today. Downstream demand supports the basis for price increases.

Today, electrolytes and separators are strengthening, with institutions pointing out that downstream demand is steadily rising, supporting the basis for price increases. The Middle East situation continues to be disruptive, with oil, gas, and other resource prices running high, further highlighting the cost-performance advantages of electric vehicles. The penetration rate of electric vehicles is expected to continue to rise both domestically and internationally; at the same time, global energy security demands are escalating, accelerating the release of overseas energy storage installation demand, and the overall demand for lithium batteries is expected to be revised upward. From production data, the clarity of downstream demand is evident: in March 2026, the production of major domestic battery companies increased by 22% month-on-month, and it is expected that production in April will further climb, providing solid support for the demand for separators and copper foils.

Supply rigidity is highlighted, and the certainty of price increases is at its peak. Since Q3 of 2025, the price increase trend in the lithium battery industry chain has been ongoing, with the market in 2026 focusing on the segments of separators and copper foils where price increase certainty is high and the cycle is long, with the core advantage being strong rigidity on the supply side:

High barrier to heavy assets: The unit investment amount for copper foil and separators reaches 150 million yuan and 500 million yuan, respectively, creating a very high financial threshold and significant difficulty for industry entry;

Long expansion cycle: The expansion cycle for copper foil is about one year, while for separators it is as long as 1.5 years, making it difficult for the supply side to respond quickly to demand growth;

Technological iteration eliminates outdated capacity: Wet-process 5μm separators and 4.5μm copper foils have become the mainstream development trend in the industry. The barriers of technology and capital have further increased, accelerating the clearance of old capacity and further contracting industry supply;

Limited new capacity: In 2026, there will be no large-scale new capacity in the copper foil and separator industries, and the supply gap will gradually become apparent. It is expected that the gap effect will further amplify in 2027, supporting the continuation of the price increase trend.

Currently, the capacity utilization rates of leading companies in copper foil and separators have been fully maximized, and the industry’s supply tightness continues. Some leading companies have continuously raised prices since Q4 of 2025, and the profitability level in Q1 of 2026 is expected to increase significantly, fully releasing profit elasticity.

As of March 26, 2026, at 13:02, the Zhongzheng Subsector Chemical Industry Theme Index (000813) rose by 0.45%, with component stocks such as Dongfang Electric rising by 4.06%, Enjie Technology rising by 4.03%, Tianci Materials rising by 3.14%, Xinzhoubang rising by 2.97%, and Satellite Chemical rising by 2.37%. The Chemical ETF (159870) rose by 0.58%, achieving three consecutive increases. The latest price is reported at 0.86 yuan.

The Chemical ETF closely tracks the Zhongzheng Subsector Chemical Industry Theme Index. The Zhongzheng Subsector Theme Index series consists of seven indices, including subdivided non-ferrous and subdivided machinery, selecting larger and more liquid listed company securities from the relevant subsectors as index samples to reflect the overall performance of listed company securities in the relevant subsector.

Data shows that as of February 27, 2026, the top ten weighted stocks in the Zhongzheng Subsector Chemical Industry Theme Index (000813) are Wanhua Chemical, Salt Lake Stock, Zangge Mining, Tianci Materials, Hualu Hengsheng, Yuntianhua, Juhua Co., Ltd., Hengli Petrochemical, Baofeng Energy, and Rongsheng Petrochemical, with the top ten weighted stocks accounting for a total of 45.18%.

Chemical ETF (159870), off-market connecting (A: 014942; C: 014943; I: 022792).