Hengyi Petrochemical Notes Product Prices Follow Crude Oil, But Profits Depend on Spreads

Deep News
07/20

Hengyi Petrochemical Co.,Ltd. addressed investor inquiries on an interactive platform, stating that fluctuations in crude oil prices will drive corresponding movements in the company's product prices. However, the company's ultimate profit depends on the spread situation for each product. The product spreads and price transmission along the industrial chain are influenced by various factors, including the supply-demand dynamics of the products themselves, raw material supply, and seasonal demand.

The supply-demand structure for refined oil products in Southeast Asia has been tight for an extended period, with profitability in the region far exceeding that of the domestic market. Concurrently, profits for chemical products like PX and benzene have continued to remain at high levels.

The Brunei refinery continues to benefit from advantages such as tax benefits, market-based pricing, and low transportation and insurance costs. It has comprehensively captured market opportunities, achieving full capacity production and sales in the first half of the year. Profit per ton of product has consistently remained at a high level, establishing the Brunei refinery as the core factor for the company's current and future performance growth. The unique geographical advantages and forward-looking strategic positioning of the Brunei refinery are becoming increasingly prominent.

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