China’s Chemical Sector Reports ¥213.39 Billion Profit in Jan–Jul 2025

China’s chemical manufacturing industry posted a total profit of ¥2133.9 billion (approximately ¥213.39 billion) for the first seven months of 2025 . According to data released by the National Bureau of Statistics on August 27, the chemical raw materials and chemical products manufacturing sector’s profit fell 8.0% year-on-year in Jan–Jul 2025 . This decline in chemical sector profits comes amid a mixed performance for industry at large – across all above-scale industrial enterprises, total profits reached ¥40203.5 billion in the same period, a slight 1.7% decrease from the prior year.

Within the broad chemical industry numbers, some subsectors diverged. For instance, the petroleum and natural gas extraction industry saw total profits of ¥2087 billion, down 12.6% year-on-year , reflecting the impact of lower global oil prices earlier this year. In contrast, certain chemical product segments benefited from cost improvements or export demand, cushioning the overall decline. The 8% drop in chemical manufacturing profits indicates margin pressures from weak domestic demand and lower product prices in 2025, as well as high base effects from the previous year.

Despite lower profits, China’s chemical sector is still substantial and continues to invest in innovation and new projects. Analysts note that if commodity prices stabilize and downstream demand picks up in the latter part of the year, the profit situation may improve. Companies are also focusing on cost control and high-value product lines to navigate the ongoing challenges in the chemical market.