Basic Chemicals and Petroleum & Petrochemicals Boom in Tandem; Oil-Coal Price Gap Boosts Coal Chemical Earnings

As A-share third-quarter reporting wraps up, the performance of the basic chemicals and petroleum & petrochemicals industries, two sectors closely tied to crude oil, is drawing close market attention. Wind data show that in the first three quarters, revenue of listed companies in the basic chemicals and petroleum & petrochemicals industries rose 18.37% and 11.29% year on year, respectively; net profit attributable to shareholders of the parent company increased 32.79% and 39.63% year on year, respectively, with both sectors delivering solid results. Within the basic chemicals industry, the chemical fiber and chemical raw materials sub-sectors posted the highest net profit growth. Notably, international crude oil prices have remained high, raising the cost of oil-based chemical feedstocks, and the gap between oil and coal prices has significantly boosted the profitability of China's coal chemical industry. (China Securities Journal)