July 8, 2026 — Driven by a combination of stable global energy prices, improved supply-demand dynamics in China, optimized industrial chain layouts, and enhanced internal cost-efficiency measures, China's chemical industry delivered a notable uplift in overall profitability during the first half of 2026.
According to a Caixin tally, more than 20 chemical listed companies disclosed their H1 2026 earnings forecasts as of July 7, with 18 companies expecting their net profit attributable to shareholders to grow by more than 100% year-on-year — accounting for over 80% of the sample. Hengyi Petrochemical and Dongfang Shenghong each forecast their H1 net profit growth caps to exceed 1,000%.
Industry observers attribute the strong performance to three key factors: stabilized international crude oil prices easing cost pressures, steady recovery in domestic downstream demand — particularly from new energy vehicles and photovoltaics driving new materials demand, and increased industry concentration strengthening the scale and pricing power of leading enterprises.
However, the rubber and plastics segment showed a divergent pattern. In Q1 2026, commodity price indices hit two-year highs, yet the rubber and plastics sector exhibited a "strong raw materials, weak finished goods" dynamic, with PE and PP prices under sustained pressure and industry chain profits tilting toward the upstream.
Looking ahead to H2 2026, analysts expect the traditional peak demand season from September to October to gradually revive plastic product demand, with improvements in woven plastics, films, and other segments lifting market sentiment for PP and PE.
