China's Top Coal-to-Chemicals Producer Posts $1.4 Billion First-Half Profit as Oil Prices Surge

According to Oilprice.com, citing Bloomberg, in a report published Thursday, 22 Mordad 1405 (August 13, 2026), Ningxia Baofeng Energy Group, which accounts for about a third of China's coal-to-chemicals output, reported a record first-half profit of $1.4 billion, nearly double the same period a year earlier. The company said in its statement that rapid, highly volatile swings in global crude prices sharply raised feedstock costs for oil-based olefin production, while domestic Chinese coal prices rose only moderately.

According to an earlier Reuters report, shares of China's coal-to-chemicals sector jumped about 30 percent between late February and mid-March. Citing International Energy Agency data, the report said China now produces 85 percent of its methanol and ammonia from coal.