March PMI returns to expansion territory, and the price levels of petrochemical-related industries rise.

Ask AI · What supply and demand changes are behind the sharp rise in prices in the petrochemical industry?

Data released by the National Bureau of Statistics on March 31 shows that in March, the manufacturing Purchasing Managers’ Index (PMI), non-manufacturing Business Activity Index, and composite PMI output index all returned to expansion territory, at 50.4%, 50.1%, and 50.5% respectively, up 1.4, 0.6, and 1.0 percentage points from the previous month, indicating a rebound in our country’s economic activity.

Among them, the main raw material purchase price index and factory gate price index for manufacturing were 63.9% and 55.4%, respectively, rising 9.1 and 4.8 percentage points from February. From an industry perspective, the purchase price index and factory gate price index for industries such as oil, coal, and other fuels processing, chemical raw materials, and chemical products are all above 70.0%, with overall industry purchase and sales prices showing a significant increase.

Orient Securities released a weekly strategy report stating that the negative impact of Middle Eastern geopolitical conflicts on Chinese assets has marginally weakened. Due to a strong full-industry chain system, the resilience of the domestic economic system has greatly increased, and China’s asset safety advantage remains relatively strong.

Sinopec ETF Huaxia (159731) and its linked funds (017855/017856) closely track the CSI Petrochemical Industry Index. According to the first-level industry distribution of Shenwan, basic chemical industry accounts for 60.19%, and the oil and petrochemical industry accounts for 32.7%. As the supply and demand pattern is reconstructed and industry attributes are upgraded, the industry cycle recovery is accelerating.

Daily Economic News