Bromine prices continue to soar, focusing on the Petrochemical ETF Huaxia (159731) industry recovery opportunity

As of 13:30 on April 2nd, Sinopec ETF Huaxia (159731) decreased by 0.1%, with holdings in Baofeng Energy, China National Offshore Oil, China National Petroleum, Shanghai Petrochemical, and Salt Lake Shares among the top gainers.

Recently, the price of bromine has surged significantly. Data shows that as of March 27th, the domestic spot price of bromine has exceeded 66k yuan( per ton, the same below), up 52.78% since early March, with a year-to-date increase of over 80%. In some regions, the spot price of bromine even soared to 72k yuan, hitting a record high. Industry analysts believe that this increase is the result of multiple factors such as tightening domestic supply, international supply disruptions, sharply rising costs, and rigid downstream demand.

China Galaxy Securities believes that if tensions in the Middle East persist and bromine exports from Israel and Jordan cannot return to normal, the price center of bromine is expected to further rise. In the long term, as domestic environmental policies continue to tighten and brine resources diminish, domestic bromine production capacity will shrink as a long-term trend, potentially increasing reliance on imports. The international supply landscape and geopolitical factors will continue to dominate bromine price trends. Meanwhile, growing demand from downstream new energy and high-end manufacturing sectors will continue to support bromine market demand, and the supply-demand balance may persist in the long term.

Sinopec ETF Huaxia (159731) and its associated funds (017855/017856) closely track the CSI Petrochemical Industry Index, driven by both basic chemicals and oil & petrochemicals. They also include high-dividend and high-growth assets, with key holdings such as Wanhua Chemical (global leader in MDI), China National Petroleum (domestic oil and gas leader), China National Chemical (domestic refining and chemical leader), and Salt Lake Shares (domestic potash fertilizer leader).

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