Huatai Securities: The U.S.-Iran conflict has led to a general rise in chemical product prices; if the situation stabilizes, the chemical industry outlook is expected to improve.

Golden Ten Data reported on April 13 that Huatai Securities pointed out that the situation between the US, Israel, and Iran has led to a general increase in chemical product prices. If the Middle East geopolitical situation stabilizes, China and the world may see a new round of restocking in chemical products, driving demand growth. On the supply side, since 2025, the industry's capital expenditure growth has significantly declined. This, combined with initiatives such as “anti-involution” and “dual carbon controls”, is expected to support supply-side adjustments and the phasing out of outdated production capacity. In addition, since 2024, regions including Europe, Japan, and South Korea have generally been in a phase of capacity withdrawal. Catalyzed by the current global energy supply crisis, the elimination of outdated overseas capacity is expected to accelerate. Driven by both supply and demand, domestic enterprises are likely to continue increasing their global market share by leveraging supply chain stability, ushering in a new prosperity cycle.