Central China Securities Co.,Ltd. released a research report indicating that the CITIC Basic Chemical Industry Index rose 0.75% in October 2025, ranking 18th among 30 CITIC primary industries. Among sub-sectors, potash fertilizer, inorganic salts, and tire industries outperformed. Chemical product prices continued their downward trend in October. The firm maintains a "neutral" investment rating for the sector.
As anti-internal competition measures further intensify, overall supply-demand dynamics in the industry are expected to improve, driving quality upgrades. For November 2025 investment strategy, the report suggests focusing on two dimensions: polyester filament, organic silicon, spandex, phosphate fertilizer, and potash fertilizer industries.
**Market Review** According to Wind data, the CITIC Basic Chemical Industry Index gained 0.75% in October 2025, underperforming the Shanghai Composite Index by 1.10 percentage points but outperforming the CSI 300 Index by 0.75 percentage points. Over the past year, the index rose 28.58%, surpassing the Shanghai Composite by 8.00 percentage points and the CSI 300 by 9.31 percentage points, ranking 9th among 30 CITIC primary industries.
**Sub-Sector and Stock Performance** Among 33 CITIC tertiary sub-sectors in October, 15 advanced while 18 declined. Potash fertilizer, inorganic salts, and tires led gains, rising 11.27%, 7.83%, and 6.51%, respectively. Carbon fiber, nylon, and rubber additives lagged, dropping 10.69%, 6.39%, and 5.87%.
Out of 526 stocks in the basic chemical sector, 291 rose and 230 fell. Top gainers included Litong Technology, Haike Xinyuan, Huide Technology, Yashi Chuangneng, and Tianji Shares, with gains of 76.03%, 71.56%, 59.91%, 58.35%, and 56.39%. Major decliners were Juhe Materials, Lanfeng Biochemical, Lianhe Chemical, Daosheng Tianhe, and Yayun Shares, down 27.32%, 24.90%, 24.71%, 23.52%, and 21.88%.
**Product Price Tracking** Per SCI data, international oil prices continued declining in October 2025, with WTI crude down 2.23% at $60.98/barrel and Brent crude down 2.91% at $65.07/barrel. Among 321 tracked products, 67 rose (26 fewer than September), led by lithium cobalt oxide, sulfur, sulfuric acid, electrolytic cobalt, and argon, up 35.98%, 23.37%, 18.52%, 17.78%, and 16.81%. Meanwhile, 216 products declined (41 more than September), with refrigerant R22, butadiene, phenol oil, industrial naphthalene, and SBS dropping 46.88%, 16.99%, 15.72%, 14.29%, and 12.97%. Overall, basic chemical prices remained weak.
**Risk Warning**: Sharp declines in raw material prices, intensified competition, and weakening downstream demand.
Comments