Chemical Industry ETF(159870)up over 2.3%, separator membranes initiate a new round of price increases

In terms of news, the separator has initiated a new round of price increases. Today, SMM’s price for the 7μm wet separator has been raised by 1.18% to 0.86 yuan/sq m.

Institutions indicate that the industry is entering a peak season, and separator companies have improved bargaining power. The market is overall in a tight balance state, with industry inventory at historically low levels, and prices are expected to rise further.

The growth rate of supply has noticeably slowed (27% in 2025, 8% in 2026), and no new capacity is planned for the next two years, while the planned projects can continue construction. The expansion cycle for separators is long, and supply growth from 2026 to 2027 is expected to be below the demand growth rate. Additionally, cutting the 7 and 9-micron production lines to 5 microns incurs capacity losses. If the downstream adopts 5 microns quickly, it will further exacerbate the capacity tightness of the 7 and 9 microns.

After the last round of price increases, the profit per square meter for leading companies in Q4 2025 was 6-7 cents, and around 10 cents for Q1 2026. The investment in wet separators is 200-300 million per billion square meters, and with an investment recovery period of 5-8 years, the profit per square meter needs to exceed 30 cents, corresponding to a PE ratio of 15 times for each company.

Expanding separator capacity is challenging, with heavy capital expenditures. After experiencing the previous expansion wave, the success rate of cross-industry ventures is low. The industry is cautious about production, especially during the transition period between liquid and solid states. It is expected that subsequent capacity will be released in an orderly manner, gradually moving towards a tight balance, which provides significant room for price increases.

As of March 27, 2026, 14:29, the CSI Sub-Industry Chemical Theme Index (000813) has surged by 2.46%. Component stocks such as Yara International rose by 8.25%, Salt Lake Co. by 7.00%, Luxi Chemical by 6.65%, and shares of Lanxiao Technology and Guangdong Hongda also followed suit. The Chemical ETF (159870) increased by 2.32%, achieving a four-day streak of gains. The latest price is reported at 0.88 yuan.

The Chemical ETF closely tracks the CSI Sub-Industry Chemical Theme Index. The CSI sub-industry theme index series consists of seven indices, including sub-divisions of non-ferrous metals and machinery, selecting larger and more liquid listed company securities from the relevant sub-industries as index samples to reflect the overall performance of listed company securities in those sectors.

Data shows that as of February 27, 2026, the top ten weighted stocks in the CSI Sub-Industry Chemical Theme Index (000813) are Wanhua Chemical, Salt Lake Co., Zangge Mining, Tianci Materials, Hualu Hengsheng, Yuntianhua, Juhua Co., 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 connections (A: 014942; C: 014943; I: 022792).