Chemical Market Weekly | 2026-10-26: Hengyi Q3 Net Profit Expected to Surge Over 33-Fold, Asian Methanol Benchmark Rises to USD 700/tonne, September Crude Processing Falls 8.4% YoY

Chinese chemical markets were mixed-to-strong this week with clear divergence across segments: Hengyi Petrochemical guided its third-quarter net profit up more than 33-fold; the PX spot benchmark held above CNY 10,000/tonne; overseas, the Asian methanol benchmark was pushed to USD 700/tonne, NY crude fell below USD 103 in after-hours trading, and South Korean ethylene prices rose month-on-month. On the macro side, September crude processing fell 8.4% year on year with the decline widening. The weekly summary below is organized into four sections: Domestic Markets, Overseas Markets, Energy and Downstream, and Policy and Standards.

Domestic Markets: Hengyi Guides Q3 Net Profit Up Over 33-Fold, PX Spot Holds Above CNY 10,000

Hengyi guides Q3 net profit up 3318.59%-3405.13% year on year. Hengyi Petrochemical (000703) disclosed its 2026 first-three-quarter earnings guidance on October 15, projecting attributable net profit of CNY 7.90-8.10 billion, up 3318.59%-3405.13% year on year. The company said the Brunei refinery, benefiting from tight refined-fuel supply and demand in Southeast Asia, has continued to run at full capacity with high per-tonne profitability; the 1.2-million-tonne caprolactam-polyamide integration project (Phase I) posted robust production and sales and contributed materially to growth. In the petrochemical chain, high upstream refining margins generally imply sustained maintenance and expansion demand for supporting reaction units, storage tanks and heat-exchange systems. Source: Shanghai Securities News

PX spot benchmark up 6.06% versus the start of the month. According to SunSirs data released on October 16, the PX benchmark price was CNY 10,500.00/tonne, up 6.06% from CNY 9,900.00/tonne at the start of the month, sitting in the high range of the past year (period high CNY 10,600.00/tonne). Aromatics strength was mainly supported by crude costs and some unit turnarounds; for downstream polyester and bottle-chip producers, processing margins will come under pressure as feedstock costs rise, lifting attention to mixing tanks, metering and insulation equipment in blending and storage operations. Source: Sina Finance

Overseas Markets: Asian Methanol Benchmark Rises to USD 700, Aromatics and Olefins Diverge

Asian methanol benchmark pushed to USD 700/tonne. According to Procurement Resource, Methanex raised its October Asian contract price, pushing the regional methanol benchmark to USD 700/tonne; in China, methanol prices jumped 64% on Iranian supply losses. Methanol is a hub product for coal-based and C1 chemistry; the price increase directly raises feedstock costs for downstream formaldehyde, acetic acid, MTBE and methanol-to-olefins, keeping stainless steel reactors and mixing units involved in feedstock blending and reaction at high utilization. Source: Procurement Resource

NY crude fell below USD 103 in after-hours trading. On October 25, NY crude traded below USD 103/barrel in after-hours trading, down more than 0.8% intraday. The pullback mainly reflected easing Middle East geopolitical sentiment and cooler demand expectations; shifts in the crude price center will transmit to naphtha, PX and benzene along the aromatics chain. Source: NetEase Finance

South Korean ethylene prices rose month on month. According to South Korean price statistics, October ethylene (99.80% purity) traded at KRW 1.413 million/tonne, up KRW 11,000/tonne from the previous month. Ethylene underpins polyethylene, ethylene oxide and ethylene glycol; its price trend has a significant effect on downstream plastics and fiber chain costs. Source: South Korea Price Statistics

Asian benzene spot up USD 18/tonne. On October 22, the benzene spot benchmark was assessed at USD 1,229/tonne FOB Korea, up USD 18/tonne from the prior day; CFR China was USD 1,258/tonne over the same period. Higher benzene supports margin recovery along the pure-benzene-styrene chain but raises feedstock costs for downstream solvents and resins. Source: ChemPriceHub

Energy and Downstream: September Crude Processing Falls 8.4% YoY, Energy Mix Diverges

September crude processing fell 8.4% year on year. According to National Bureau of Statistics data, September crude processing was 57.48 million tonnes, down 8.4% year on year, with the decline widening 1.5 percentage points from August; the January-September cumulative figure was 513.6 million tonnes, down 6.8% year on year. Over the same period, crude output was 18.21 million tonnes, up 2.2% year on year; raw coal output was 390 million tonnes, down 6.8% with the decline narrowing 0.9 percentage point; natural gas output was 21 billion cubic metres, down 1.0%; power generation was 82.94 billion kWh, down 1.2%, with solar generation up 19.5%. Lower refinery utilization implies more maintenance windows for existing units and a longer observation period for complete chemical line installations and new-unit commissioning. Source: China Economic Net

Policy and Standards: MIIT Publishes 22 Industry Standards, 7 Cover Chemicals

MIIT publishes 22 industry standard proposals for public comment. The Ministry of Industry and Information Technology on October 23 published 22 industry standard proposals including Round-Form Molding Belts for Agricultural Harvesting Machinery, of which 7 cover chemicals, 8 ferrous metallurgy, 3 rare earths and 4 light industry; the public comment period runs from October 24 to November 22. Updated standards will directly govern the manufacturing and inspection specifications of related chemical equipment and components; equipment makers need to recalibrate design, materials and testing requirements against the new standards. Source: MIIT

Further reading: - Chemical Market Weekly 2026-10-19: High Oil Prices Support Petrochemical Costs, PPI Chemical Feedstocks Up 12.6% YoY, Methanol and Styrene Shift Higher - Chemical Market Weekly 2026-10-12: Chemical Futures Rise After the Holiday with Methanol Leading Up Over 7%, International Oil Prices Stay High, Lianyungang Petrochemical Adds CNY 8.85 Billion Capital

This report is compiled by Hyline Shengda Equipment Manufacturing Co., Ltd. (hyline.cn); information ownership belongs to the original authors. The company specializes in stainless steel reactors, mixing tanks, storage tanks, dispersers, concentrators and complete chemical line support, including non-standard customization.