China's Coal-to-Chemicals Industry Soars on High Oil Prices

China's coal-to-chemicals industry is reaping massive profits due to high oil prices, according to recent data from Ningxia Baofeng Energy Group Co.

The company, which accounts for about a third of China's coal-to-chemicals output, reported record profits for the first half of the year, totaling $1.4 billion.

This is almost twice the profit made in the same period last year and marks a significant increase in feedstock costs for oil-based olefins.

The Middle East conflict has disrupted oil flows through the Strait of Hormuz, causing crude oil prices to skyrocket and benefiting coal-to-chemicals producers like Ningxia Baofeng Energy Group Co.