Chinese private-sector firms face refining pressure
Chinese private-sector firms Rongsheng and Hengli relied on petrochemicals to generate profits in this year's first half, despite raising run rates at their new integrated refineries.
Shanghai listed-Hengli Petrochemical performed better than Shenzhen-listed Rongsheng Petrochemical during January-June compared with a year earlier, helped by higher second-quarter purified terephthalic acid (PTA) margins.
Hengli's January-June profit rose by 113.6pc from a year earlier to 4.02bn yuan ($569mn) . The company said its 400,000 b/d Changxing refinery in north China's Dalian, which ramped up runs from May, contributed to its profitability in the first half but the higher profits was mainly because of better performance for its PTA segment.
Rongsheng's profit fell by 8.7pc to Yn1.05bn. Its 400,000 b/d ZPC refinery at Zhoushan in east China's Zhejiang recorded a Yn29.6mn loss in the first half.
Rongsheng said PTA supplies tightened in the first half of the year because of more maintenance at PTA units, while second-quarter margins also increased.
Hengli started producing gasoline in June, after selling mainly gasoline components in the first half of the year but gasoline sales volumes remain small. Rongsheng, which formally started up in the first half of this year, supplied feedstock from the refinery to its Zhongjin Petrochemical subsidiary that runs a 1.6mn t/yr paraxylene unit.
Both firms are also hoping that new ethylene capacity will create a new revenue stream. Hengli says it plans to bring a Yn21bn, 1.5mn t/yr ethylene plant and other derivative units on stream by the end of this year, targeting a full start-up by early 2020. Rongsheng is adding 1.4mn t/yr of ethylene capacity at its ZPC refinery, which is also likely to start up by the end of the year.
source: Argus Media
Top News
Six last month
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iron ore price flirts with key $100/t level on firm demand, China stimulus hopes
Resolute Mining says it will pay Mali $160 million in tax dispute
Gold loses some luster after Trump’s decisive win
BHP to spend up to $14 billion on Chilean copper expansion
Trump chooses oil fracking boss as energy secretary
Newmont sells Ontario gold mine to Orla for $850 million
South Africa police standoff with illegal gold miners escalates
BHP warns Australian mining not ready for low-cost competitors
Filo expands copper-gold Aurora zone in Argentina amid sale
Mining’s old guard needs strong medicine
Adani’s Australian coal unit faces human rights complaint
Hedge funds slash bullish wagers on gold before war jitters
Gold price set for biggest weekly jump in 20 months on haven demand
Marimaca Copper eyes ASX dual listing to boost Chile project
Osisko Development surges on permitting milestone for Cariboo gold project
Earth AI, Legacy Minerals make first greenfield palladium discovery using artificial intelligence
Mexico’s proposed higher mining royalties could block nearly $7bn in investments
Sierra Leone woos miners to clean energy with $11 billion plan
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Filo expands copper-gold Aurora zone in Argentina amid sale
Mining’s old guard needs strong medicine
Adani’s Australian coal unit faces human rights complaint
Gold price set for biggest weekly jump in 20 months on haven demand
Marimaca Copper eyes ASX dual listing to boost Chile project
Osisko Development surges on permitting milestone for Cariboo gold project
Earth AI, Legacy Minerals make first greenfield palladium discovery using artificial intelligence