A recent research report from Central China Securities Co.,Ltd. maintains a "synchronous with the market" investment rating for the chemical industry. The firm suggests that within the chemical sector's sub-industries for June 2026, rubber additives, electronic chemicals, and fluorine chemical industries were the top performers. The prices of key chemical products continued their downward adjustment trend during the month.
Recommended Investment Strategy for July 2026
The investment strategy for July 2026 proposes a two-pronged approach. The first involves focusing on industries like silicone and polyester filament, which are benefiting from improved supply-demand dynamics and enhanced sector prospects driven by policies such as anti-involution measures and the dual-carbon goals. The second prong recommends attention to new materials segments, including electronic chemicals, packaging materials, and modified plastics.
Market Performance Overview
According to Wind data, the CITIC Basic Chemical Industry Index rose by 8.96% in June 2026. This performance outpaced the Shanghai Composite Index by 8.33 percentage points and exceeded the CSI 300 Index by 7.18 percentage points, ranking 4th among the 30 primary CITIC industry sectors. Over the past year, the CITIC Basic Chemical Index has gained 53.10%, outperforming the Shanghai Composite by 34.23 percentage points and the CSI 300 by 26.60 percentage points, securing the 5th position among the 30 sectors.
Sub-Industry and Stock Performance Review
Data from Wind indicates that in June 2026, among 33 CITIC tertiary sub-industries, 18 advanced while 15 declined. The rubber additives, electronic chemicals, and fluorine chemical industries led the gains, rising 58.43%, 52.81%, and 41.51% respectively. Conversely, the food and feed additives, nitrogen fertilizer, and soda ash industries lagged, falling 15.73%, 13.69%, and 13.37% respectively.
Within the basic chemical sector's 531 stocks in June 2026, 193 stocks increased in value while 337 declined. The top five gainers were Suqian Liancheng, Jushi Chemical, Zhongju Core-Tech - U, Baihehua, and Guoci Materials, with increases of 174.57%, 165.51%, 156.52%, 114.86%, and 103.58% respectively. The largest decliners were Zaisheng Technology, Huakang Shares, Huaheng Biotech, ST Hailong, and Jinrui Mining, which fell 41.98%, 36.98%, 31.23%, 30.09%, and 30.07% respectively.
Product Price Monitoring
Based on SCI99 data, international oil prices declined significantly in June 2026. WTI crude fell 20.44% to settle at $69.5 per barrel, while Brent crude dropped 20.76% to $72.92 per barrel. Among the 322 products tracked by SCI99, 38 saw price increases, a number that continued to decrease from the previous month. The top gainers were argon, sulfur, coking coal, anthracite coal, and diethylene glycol, rising 21.56%, 21.08%, 18.83%, 18.36%, and 15.68% respectively.
A total of 260 product varieties experienced price declines, with the number of falling products continuing to rise. The most significant decreases were seen in ethane, polyvinyl alcohol, metallocene linear low-density polyethylene, acetone, and bromine, which fell 29.51%, 29.41%, 29.13%, 28.98%, and 28.38% respectively. Overall, chemical product prices broadly continued their corrective trend.
Key Risk Factors
The report highlights potential risks including a sharp decline in raw material prices, intensifying industry competition, and a downturn in downstream demand.
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