Huatai Securities: The conflict between the US and Iran has led to a general increase in chemical prices. If the situation stabilizes, we believe that the chemical industry will see an improvement in its outlook.

Huatai Securities pointed out that the escalating tensions between the US and Iran have caused a general increase in chemical commodity prices. If the Middle East geopolitical situation stabilizes in the future, China and the global market are expected to see a new round of chemical commodity restocking, driving demand growth. Since 2025, industry capital expenditures on the supply side have significantly decreased, coupled with factors such as "anti-internal competition" and "dual carbon control", which are expected to help adjust the supply side and clear out outdated production capacity. In addition, since 2024, Europe, Japan, South Korea, and other regions have been in an overall period of capacity reduction, with the current global energy supply crisis catalyzing the accelerated clearance of outdated production capacity overseas. Driven by supply and demand, domestic enterprises are expected to continuously increase their global market share and enter a period of economic prosperity by leveraging advantages such as supply chain stability.