Chemical Industry ETF Rises Against Market Trend, High Oil Prices Drive Pesticide Price Increases, Industry Sentiment on the Rise

The phosphor chemical sector surged in the afternoon. On the news front, spring farming preparations and inventory buildup are accelerating, with cost support driving half of pesticide prices higher. According to China Nonglihua, on March 15, the China Nonglihua raw material index was 74.57 points, up 3.09% year-on-year and 6.27% month-on-month. Among hundreds of tracked pesticide products, 49% increased compared to last month, 43% remained flat, and 8% declined.

Key pesticide prices are rising. 1) According to Baichuan Yingfu, on March 18, the prices of herbicides glyphosate, glufosinate, para-nitrochlorobenzene, and isopropylamine were 27,000/48,500/11,000/13,000 yuan/ton, up 1.89%/5.43%/22.22%/18.18% from last week, and +16.38%/+6.59%/+70.54%/+19.27% year-on-year. 2) Insecticides chlorpyrifos, dichlorvos, and cyfluthrin were priced at 255,000/41,000/108,000 yuan/ton, up 2%/3.8%/0.93% from last week, and +19.72%/+1.86%/-1.82% year-on-year. 3) Fungicides ethylenediamine, orthophenediamine, and nitrochlorobenzene were priced at 16,800/30,000/9,500 yuan/ton, up 60%/15.38%/18.75% from last week, and +32.81%/+17.65%/+46.15% year-on-year.

Institutions note that rising costs, spring planting inventory buildup, and limited supply from India have pushed pesticide prices into an upward cycle. 1) According to China Nonglihua, recent sharp increases in international crude oil prices have driven up raw material costs for pesticides. The domestic pesticide raw material market is active, with a shift upward in trading focus, and most varieties supported by upstream costs are rising collectively. 2) The downstream spring planting peak is underway, with formulation companies and channel merchants eager to replenish stocks, actively purchasing, and market transactions increasing significantly. Coupled with tight intermediate supply and some raw material varieties experiencing reduced supply. 3) As a major global pesticide producer and exporter, India heavily depends on Middle Eastern oil and gas imports. International oil and gas prices have surged, significantly raising India’s energy procurement costs. Additionally, industrial gas rationing and reduced supply have caused raw material and energy costs to rise simultaneously. Under the dual constraints of cost pressure and limited gas supply, Indian pesticide manufacturers have been forced to cut production, and overall industry operating rates are notably hindered.

The industry outlook for pesticides is expected to continue improving. 1) After three consecutive years of downturn, the industry’s main product prices have fallen to historic lows, with pessimistic expectations fully reflected, laying a foundation for a cyclical rebound. 2) The China Pesticide Industry Association has launched a three-year “Correcting Wind and Reorganizing” action plan to promote system improvements and healthy competition. The Ministry of Agriculture and Rural Affairs’ new “One Certificate, One Product” policy, effective from January 1, 2026, will enforce strict regulation of unlicensed production, accelerating the exit of outdated and non-compliant capacities. 3) Since 2025, the industry has experienced several major safety incidents. As a high-risk chemical category, pesticide regulation and entry barriers are continuously tightening, further restricting supply. 4) The sharp rise in crude oil prices has increased planting costs, and the prices of downstream agricultural products futures are generally rising. Improved planting benefits are expected to boost pesticide demand, driving the industry’s upward cycle.

As of 13:05 on March 23, 2026, the CSI Sub-Industry Chemical Index (000813) increased by 0.63%. Top constituents include Jinfan Technology (+10.02%), Hengyi Petrochemical (+9.48%), HangOxygen (+7.49%), XinFengMing (+5.71%), Tianci Materials (+4.02%). The Chemical ETF (159870) rose 0.59%, with the latest price at 0.86 yuan.

The Chemical ETF closely tracks the CSI Sub-Industry Chemical Index, which is composed of seven sub-industry indices such as non-ferrous metals and machinery. These indices select large, liquid listed companies within relevant sub-industries to reflect the overall performance of their respective sectors.

Data shows that as of February 27, 2026, the top ten holdings of the CSI Sub-Industry Chemical Index (000813) are Wanhua Chemical, Salt Lake Shares, Zangge Mining, Tianci Materials, Hualu Hengsheng, Yuntianhua, Juhua, Hengli Petrochemical, Baofeng Energy, and Rongsheng Petrochemical, accounting for 45.18% of the total weight.

Chemical ETF (159870), OTC links (A: 014942; C: 014943; I: 022792).