Chinese Non‑ferrous Metals and Basic Chemical Sectors Stage Broad‑based Recovery in First‑half 2026 Earnings Round

As listed Chinese firms release their half‑year reports for 2026, both non‑ferrous metals and basic chemical sectors are delivering markedly improved operating results.

According to data from the China Non‑ferrous Metals Industry Association, 12,362 above‑scale non‑ferrous metal enterprises generated combined operating revenue of RMB 5.77 trillion in the first six months, representing a 21.7 per cent year‑on‑year rise. Total profits reached RMB 418.39 billion, climbing 94.0 per cent compared with the equivalent period a year earlier.

The reporting window for basic‑chemical half‑year results is drawing to a close, with recovery momentum becoming increasingly tangible. Wind figures show that, as of 23:00 on 30 August, 282 listed firms within the basic‑chemical segment had published interim filings. These businesses posted aggregate turnover of RMB 1.22 trillion, up 11.9 per cent year‑on‑year, while attributable net profit hit RMB 80.98 billion, an 86 per cent increase from the prior‑year half‑year. Profit‑making capacity across the industry has strengthened materially.

Analytical bodies characterise the current upturn as a convergence of cyclical price correction and industrial transformation, with profit expansion proceeding alongside structural optimisation, diverging from past rebounds driven purely by shifts in output volumes and pricing.

Metal prices have maintained elevated levels through the first half. Reports published by the China Non‑ferrous Metals Industry Association outline market conditions where new‑energy‑linked metals lead price gains, mainstream industrial metals see broad advances and precious metals move along divergent trajectories. Tin, copper, aluminium and lithium carbonate record particularly robust rises, industrial silicon faces downward pressure, and precious metals oscillate at high price points.

Within base‑metal markets, LME tin prices have advanced 64.9 per cent year‑on‑year on the back of a recovering global semiconductor supply chain. LME copper has risen 40.4 per cent, LME aluminium 36.6 per cent, LME zinc 32.5 per cent amid external supply disruptions, and LME nickel 17.5 per cent, constrained by expanding ferronickel output in Indonesia. For new‑energy metals, domestic futures prices for battery‑grade lithium carbonate are 151.0 per cent higher year‑on‑year, with spot prices climbing 205.4 per cent. Spot cobalt prices have surged 92.6 per cent.

Tight supply‑demand balances underpin firmer copper and aluminium valuations. Jiangxi Copper has registered attributable net profit of RMB 8.632 billion for the first half, a 106.77 per cent year‑on‑year uplift, with performance gains linked to movements in main‑product prices and sales volumes. CMOC Group brought in operating revenue of RMB 135.32 billion, up 42.78 per cent, and attributable net profit of RMB 16.152 billion, rising 86.27 per cent. Tongling Nonferrous Metals posted attributable net profit of RMB 2.993 billion, a 107.93 per cent increase, supported by higher cathode‑copper and sulphuric‑acid prices together with improved copper‑foil processing fees.

Aluminium producers register especially strong returns. Hongqiao Holdings records half‑year attributable net profit of RMB 15.645 billion, 77.02 per cent higher year‑on‑year, lifted by steep electrolytic‑aluminium price increases and sharp reductions in interest expenses; its second‑quarter profit expands a further 31.52 per cent quarter‑on‑quarter. Zhongfu Industry attains attributable net profit of RMB 1.881 billion, up 165.84 per cent. Shenhuo Co generates attributable net profit of RMB 4.781 billion, rising 151 per cent. Tian Shan Aluminium Industry sees attributable net profit climb to RMB 4.177 billion, a 100.44 per cent year‑on‑year advance.

Brokerage research notes that fundamental conditions for copper and aluminium are set to stay constructive, with price centres likely to trend upwards amid volatility. Separate analysis points to squeezed processing margins placing pressure on smelting operations, with profits flowing further to operators boasting high resource self‑sufficiency and robust cost‑management capabilities.

Profit benchmarks for basic‑chemical businesses have moved distinctly higher over the first six months. Data from the National Bureau of Statistics indicates profit among raw‑material manufacturing industries rose 55.2 per cent year‑on‑year across January‑July, contributing 7.1 percentage points to total profit growth for all above‑scale industrial enterprises. Within this grouping, chemical‑industry profits rise by 56.6 per cent, while petroleum‑processing operations swing into profit with total gains of RMB 42.21 billion.

Hengyi Petrochemical secures first‑half operating revenue of RMB 67.309 billion, up 20.28 per cent, and attributable net profit of RMB 5.902 billion, an increase of 2,500.73 per cent. Earnings growth stems from profit momentum across its overseas refining complex, domestic polyamide and polyester divisions. Wanhua Chemical achieves turnover of RMB 119.316 billion, 31.26 per cent higher year‑on‑year, alongside attributable net profit of RMB 10.063 billion, rising 64.35 per cent. Satellite Chemical posts operating revenue of RMB 30.713 billion (+30.92 per cent) and attributable net profit of RMB 6.227 billion (+126.94 per cent). The polyester filament segment also recovers; New attains revenue of RMB 40.691 billion (+21.50 per cent) and attributable net profit of RMB 1.439 billion (+103.16 per cent). Huafon Chemical records attributable net profit of RMB 1.983 billion, up 101.64 per cent. Market volatility in international crude oil has driven periodic shifts in upstream feedstock costs, and the sector has moved out of cyclical lows, delivering improved product pricing and margins.

Fine‑chemical and advanced‑materials segments also bounce back. Fosuo Technology’s attributable net profit reaches RMB 905 million, a 1,608.12 per cent year‑on‑year increase. Dongyue Silicon Materials notches attributable net profit of RMB 429 million (+916.22 per cent). Wankai New Materials registers attributable net profit of RMB 562 million (+910.09 per cent). Yongtai Technology delivers attributable net profit of RMB 274 million (+365.74 per cent).

Market analysts hold shared views on the chemical sector’s cyclical repair. Capital‑spending dynamics within China’s chemical industry have shifted notably from late 2025, as domestic regulatory frameworks and the withdrawal of inefficient overseas capacity bring a turning‑point in capacity cycles. Competitive strengths for Chinese chemical enterprises on global markets are expected to strengthen. Conditions through the second half of 2026 combine constrained supply, bottom‑forming demand and policy support. Restocking activity among downstream participants, which have maintained cautious operational stances, can act as a fresh catalyst for market momentum.

Current recovery blends cyclical price repair with industrial upgrading. Within non‑ferrous markets, copper, aluminium and tin are adopting valuation frameworks tied to technology‑driven demand. Expanding compute‑infrastructure deployments lift consumption for these metals alongside tantalum and indium. Artificial‑intelligence development underpins sustained long‑run copper demand, with constrained mine‑side supply paired with steady end‑use consumption. Electric‑vehicle uptake keeps cobalt requirements for cathode materials growing at a moderate pace.

Leading chemical‑sector firms reinforce profit resilience through technical innovation. Major capital projects covering overseas refining, coal‑to‑chemical facilities and recycled‑material capacity move forward to diversify raw‑material bases. Upgrades to petrochemical plant configurations enhance cost competitiveness. Industry assessments point to low downstream inventories ahead of peak seasonal activity, which may spur restocking and widen chemical‑product margin spreads. Capacity expansion in chemical segments slows markedly for the second half, fixed‑asset investment trends turn negative, and overall end‑use demand picks up, supporting improved supply‑demand balances across mid‑stream chemical industries.

The upturn is driven jointly by cyclical forces and structural growth drivers. Artificial‑intelligence computing and new‑energy applications unlock long‑term growth avenues for chemical products. Advanced chemical materials find expanding use within power generation, energy storage, manufacturing and thermal management. Domestic developers make accelerating breakthroughs in fluorinated compounds for liquid‑cooling systems, high‑grade electronic resins and thermal‑interface materials. Further scope opens for speciality‑material categories including electronic resins, premium fluorine‑based materials and MLCC powder compounds as global computing‑resource requirements keep expanding.