rongsheng petrochemical share price factory

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Rongsheng Petro Chemical Co, Ltd. specialises in the production and marketing of petrochemical and chemical fibres. Products include PTA yarns, fully drawn polyester yarns (FDY), pre-oriented polyester yarns (POY), polyester textured drawn yarns (DTY), polyester filaments and polyethylene terephthalate (PET) slivers.

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Commodities & Futures: Futures prices are delayed at least 10 minutes as per exchange requirements. Change value during the period between open outcry settle and the commencement of the next day"s trading is calculated as the difference between the last trade and the prior day"s settle. Change value during other periods is calculated as the difference between the last trade and the most recent settle. Source: FactSet

Mutual Funds & ETFs: All of the mutual fund and ETF information contained in this display, with the exception of the current price and price history, was supplied by Lipper, A Refinitiv Company, subject to the following: Copyright 2019© Refinitiv. All rights reserved. Any copying, republication or redistribution of Lipper content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Lipper. Lipper shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Rongsheng Petrochemical Co., Ltd. engages in the manufacture, sale, spinning, and texturing of purified terephthalic acid (PTA) polyester. Its products include PTA, polyester chips, and polyester yarn. The company was founded on September 15, 1995 and is headquartered in Hangzhou, China.

Rongsheng Petrochemical was founded in 1995 and operates in China. The company engages in the sector "Plastics & Synthetic Rubber in Primary Forms" (ISIC: 2013). This industry belongs to the broader "Chemicals & Related Products" (ISIC: 20) sector. The chemical industry includes large and well-established corporations that manufacture a wide range of products across a variety of markets. Today, the chemical manufacturing sector plays an essential role ─ not only in virtually every economy across the globe, but also within the majority of sectors of those economies. The CEO of the company is Yongqing Li.

Also related to the spike is inflation, the likes of which some countries around the world haven’t seen in decades. According to the Energy Information Administration, the US benchmark oil price rose from $47.07 per barrel in December 2020 to $71.69 a year later.

The chemical industry, most of which relies on oil as a raw material, responded by raising prices in kind. According to LyondellBasell Industries, US and European ethylene prices increased by 35% and 60%, respectively, in 2021, while polyethylene prices rose about 45%. Prices for ammonia more than doubled.

Thus, the healthiest sales increases seen in the Global Top 50 came from petrochemical companies. Sabic, Formosa Plastics, PetroChina, LyondellBasell Industries, and ExxonMobil Chemical all clocked in with sales increases of 40% or more. Also riding the crest of the commodity price wave are fertilizer makers such as Yara, Nutrien, and Mosaic, which posted astounding increases in sales.

A few companies in the 2021 ranking fell off in 2022 because they didn’t have enough sales to make the cut. These are the US petrochemical maker Westlake, the US agricultural chemical producer Corteva Agriscience, and the Japanese chemical makers Tosoh and DIC.

Joining the ranking for the first time is EuroChem Group, one of the fertilizer makers that got a lift from higher commodity prices. It debuts at number 44. Thailand’s PTT Global Chemical returns at 46 after a 1-year hiatus.

Two Chinese newcomers make the ranking: TongKun Group at 48 and Hengyi Petrochemical at 50. Both are polyester producers that make their own raw materials. Hengyi also has a large, integrated nylon 6 business. Both companies join similar Chinese firms, like Hengli Petrochemical and Rongsheng Petrochemical. All these companies have been building massive complexes for aromatics and derivatives, in many cases swamping entire segments of the chemical industry—such as purified terephthalic acid—with new capacity that is well beyond the scale of players outside China.

For the third consecutive year, BASF heads the Global Top 50. Because it has a home base in Germany, the company was strongly impacted by Russia’s invasion of Ukraine. BASF pledged in April to wind down operations in Russia and Belarus, which represent about 1% of its sales. The company says it will continue supplying agrochemicals to these countries to avoid disrupting the world’s delicate food supply chain. BASF has also been affected by the severe increase in European natural gas prices that the war has exacerbated. In March, BASF chairman Martin Brudermüller told a Houston audience at the IHS Markit World Petrochemical Conference that “European industry really has to rethink” its strategy, given its dependence on natural gas from Russia. The war has also affected the company’s Wintershall Dea energy joint venture, which has extensive operations in Russia. During the first quarter, BASF took a $1.2 billion write-off related to the cancellation of Nord Stream 2, a natural gas pipeline between Germany and Russia that Wintershall helped finance. BASF is also anticipating the coming energy transition. The company is carving out its emission catalyst business, which it acquired with its 2006 purchase of Engelhard. The move is a response to the dim outlook for internal combustion engine vehicles and could be a prelude to a sale. BASF has simultaneously been trying to grow as a producer of materials for electric vehicle batteries and aims to spend $5 billion on production capacity outside Europe.

In 2020, Dow revealed its aspiration to reach carbon emission neutrality by 2050, and at an investor event in October, it detailed its plans to get there. The company aims to spend $1 billion per year, about a third of its capital budget, to decarbonize its petrochemical sites around the world one by one. Topping that list is Fort Saskatchewan, Alberta, where in an industry first, the company will build a carbon-neutral ethylene cracker. An autothermal reformer will process the cracker’s off-gases to generate hydrogen that will be burned in the cracker’s furnaces instead of natural gas. Dow will capture the resulting carbon dioxide and inject it into Alberta’s CO2 pipeline for sequestration. Dow’s sustainability push extends beyond greenhouse gases and into plastic waste. At the October event, for example, the company said it would collaborate with Fuenix Ecogy to build a waste plastics pyrolysis plant in the Netherlands.

The Saudi giant Sabic has a large presence in Europe owing to its acquisition of petrochemical businesses from DSM and Huntsman more than a decade ago. And while the company gained a North American engineering polymer business in 2007 with the purchase of GE Plastics, a US toehold in petrochemicals has been more elusive. Sabic finally accomplished this long-term objective in January when its $10 billion joint venture with ExxonMobil Chemical, Gulf Coast Growth Ventures, started up near Corpus Christi, Texas. The venture produces ethylene and the derivatives polyethylene and ethylene glycol. The project is noteworthy because of how quickly it was erected: in just over 2 years. Some recent US petrochemical projects have experienced delays longer than that.

Formosa Plastics’ proposed $9.4 billion petrochemical complex in St. James Parish, Louisiana, suffered a major setback last year when the US Army Corps of Engineers ordered a full environmental review. That process could take longer than 2 years, according to local activists. The massive project, which would include an ethylene cracker, polyethylene plants, and other facilities, was originally unveiled in 2015. While the complex would be an important diversification move for the Taiwan-based company, S&P Global Ratings noted in a report in October that Formosa’s management could be reaching the end of its patience for delays and local opposition. “We see diminishing probability that the planned mega project in Louisiana will go ahead, given the changing political atmosphere in the U.S.,” the credit rating agency wrote.

Since its inception in the 1990s, Ineos has expanded by acquiring established divisions of large chemical companies. Most recently, in early 2021, it bought BP’s aromatics business, a major producer of purified terephthalic acid, for $5 billion. Since then, Ineos has been focusing on sustainability. In September, it announced a $1.3 billion plan to reduce carbon dioxide emissions by 60% at its Grangemouth, Scotland, petrochemical complex by 2030. It will do so by capturing the greenhouse gas and sending it to the proposed Acorn CO2 system, which aims to inject it under the North Sea. In October, Ineos said it plans to spend $2.3 billion on green hydrogen projects. It will construct a 20 MW electrolyzer, powered by alternative energy, in Rafnes, Norway. And in Cologne, Germany, Ineos wants to build a 100 MW electrolyzer that will make hydrogen for green ammonia. Separately, Ineos is installing a unit in Cologne to extract acetonitrile made during acrylonitrile production. Acetonitrile is a solvent used in butadiene extraction and in high-performance liquid chromatography. Its use is acutely growing as a solvent in the production of oligonucleotides for RNA vaccines.

PetroChina heaped on the growth in 2021, expanding by 42% from 2020 as China’s economy recovered from the effects of the COVID-19 pandemic. New projects in China will only further the company’s expansion. This year, it is due to complete the $10 billion Guangdong Petrochemical project. The massive effort includes a refinery, an aromatics unit, and an ethylene cracker. PetroChina has also finished work on an ethylene project in Tarim that will use domestically produced ethane as its feedstock. In Jieyang, an enormous $1 billion acrylonitrile-butadiene-styrene plant with 600,000 metric tons per year of capacity is in the works.

Over the past year, ExxonMobil has been advancing sustainability initiatives. In March, it unveiled plans to build a blue hydrogen facility at its refining and petrochemical complex in Baytown, Texas. The project would capture 10 million metric tons (t) per year of carbon dioxide generated in the hydrogen production process, reducing the site’s carbon footprint by 30%. The project would connect to a massive carbon-capture-and-storage hub in the region that ExxonMobil is spearheading. Also in Baytown, the company is building a facility that will use new chemical technology to recycle waste plastics. It hopes to process 500,000 t of plastics annually around the world by 2026 and is also considering projects in Canada, the Netherlands, and Singapore.

Within a year of taking over the helm of Japan’s largest chemical maker, CEO Jean-Marc Gilson, a veteran of Dow Corning and Roquette, launched a major restructuring initiative. Mitsubishi Chemical Group plans to carve out its petrochemical and coal-based chemical businesses as a separate company and then exit them by the end of its 2023 fiscal year. The units, which make olefins, polyolefins, and other bulk petrochemicals, generate about 20% of the company’s sales. Mitsubishi Chemical Group wants to focus on more specialized areas, such as electronic materials and the life sciences.

The expansion program at this Chinese firm is a good illustration of just how massively and systematically the Chinese petrochemical industry has been growing in recent years. For example, Hengli Petrochemical plans to bring on line 5 million metric tons (t) per year of capacity for the polyester raw material purified terephthalic acid (PTA) later this year in Huizhou, China. The company is building a 450,000 t plant to make poly(butylene adipate-co-terephthalate) (PBAT), which will consume some of the PTA as a raw material. Hengli is building a 300,000 t adipic acid unit, also to help feed PBAT production. And it is working on a big polyester fiber expansion and recently opened a large ethylene cracker.

The Indian conglomerate has abandoned plans to put its refining and chemical operations—which it calls Oil to Chemicals—into a stand-alone business. It also walked away from negotiations with Saudi Aramco to sell a 20% stake in the business for $15 billion. Instead, Reliance Industries is undertaking what may turn out to be an even bigger change in direction. Last year, it announced an ambitious goal to achieve net-zero carbon emissions by 2035. Reliance is setting aside 2,000 hectares of land at its massive Jamnagar refinery and petrochemical complex for factories that would make photovoltaic modules, batteries, electrolyzers, and fuel cells. Along these lines, Reliance bought Faradion, a British sodium-ion battery start-up, for $135 million. It will spend another $35 million to bring the new battery chemistry to market. It also purchased the Norwegian solar cell maker REC Group for $771 million.

The Chinese polyurethane and petrochemical maker has been rocketing up the Global Top 50 because of its prodigious growth in recent years. And 2021 was another enormous year for Wanhua Chemical—its revenues nearly doubled from 2020. Ambitious capital expansion projects have helped fuel the growth. In Yantai, China, it opened an ethylene cracker and derivatives plants and revamped methylene diphenyl diisocyanate production. In April, the company announced it would spend $3.6 billion to build a chemical complex in Penglai, China. The project, to be completed in 2024, will feature a propane dehydrogenation unit as well as downstream plants for polypropylene, propylene oxide, and other chemicals. The company also started producing cathode materials and the biodegradable polymer poly(butylene adipate-co-terephthalate).

It is possible that Braskem could change hands in the near future. Novonor, the Brazilian conglomerate formerly known as Odebrecht, is facing hefty fines because of a Brazilian corruption scandal. The US Department of Justice alone is demanding $2.6 billion from the company. As a consequence, Novonor has been looking to sell its 38% interest in Braskem, which includes control of more than 50% of Braskem’s common stock. Sale talks are nothing new for Braskem. The company discussed a sale to LyondellBasell Industries in 2018 and 2019, but nothing came of the negotiations. In 2020, Novonor and Braskem’s other major shareholder, the Brazilian state oil company Petrobras, planned to float Braskem shares on public markets. That plan was shelved earlier this year because of financial market volatility. And in April, the private equity firm Apollo Capital was rumored to be bidding for Novonor’s stake.

A Rongsheng Petrochemical subsidiary, Zhejiang Petroleum & Chemical, started up the second phase of its massive refining and petrochemical complex in Zhejiang, China, in 2021. With capacity now doubled, the facility can process 40 million metric tons (t) of oil per year. The facility has a large petrochemical output: up to 6.6 million t of aromatics and 1.4 million t of ethylene per year. The expansion allowed the company to start making specialized polymers, such as acrylonitrile-butadiene-styrene and polycarbonate.

Potash and phosphate prices have been high, and so have profits at the leading US fertilizer producer: Mosaic enjoyed a 22% operating profit margin in 2021. The company aims to increase potash production by 2 million metric tons per year this year versus 2020 levels. It has reopened its Colonsay, Saskatchewan, plant, which had been idle for 2 years because of poor market conditions. Additionally, Mosaic has started up a new potash mine shaft in Esterhazy, Saskatchewan, while closing two older shafts at that location.

Asahi Kasei has been making a push into biobased chemicals. It plans to make the building-block chemical acrylonitrile from biomass-derived propylene at its Tongsuh Petrochemical subsidiary in South Korea. It will use a mass-balance approach, in which biomass fed into a conventional petrochemical plant is credited to a share of products that are made. And at a conference in Washington, DC, in March, company officials said Asahi would commercialize nylon 6,6 made with biobased hexamethylenediamine from Genomatica. Meanwhile, the Japanese company is exiting one of its old-line operations. In August, the company said it was leaving the clear styrene block copolymer business by 2023 because of deteriorating profitability.

The fertilizer maker EuroChem Group makes C&EN’s global ranking for the first time this year. The company is headquartered in Zug, Switzerland, but originated in Russia, where it has most of its operations. EuroChem has been caught up in the war in Ukraine more than any other chemical producer in the Global Top 50. The European Union slapped sanctions on Andrey Melnichenko, EuroChem’s founder and then owner of 90% of its stock. He tried to transfer the shares to his wife, but the EU hit her with sanctions, too. EuroChem also had a deal on the table to buy Borealis’s fertilizer business for $520 million, but the Russian invasion scuttled it.

In a transaction that will allow it to focus strictly on petrochemicals and polymers, Borealis received an $870 million offer in June for its nitrogen fertilizer business from the Czech agricultural conglomerate Agrofert. The business had sales of about $1.5 billion in 2021. The deal works out nicely for Borealis, which had an earlier overture of $520 million from EuroChem Group. Borealis walked away from that deal because of the war in Ukraine and EuroChem’s Russian connections. Borealis might have missed an opportunity to be affiliated with a high-end polymer business. OMV, the Austrian refiner that owns 75% of Borealis, put in a bid to purchase DSM’s engineering polymer business. But OMV lost out to a partnership between Advent International and Lanxess.

PTT Global Chemical rejoins the Global Top 50 after a 1-year absence. The Thai petrochemical maker made a major diversification play late last year when it purchased the German coatings resins maker Allnex for $4.8 billion from the private equity firm Advent International. Allnex has annual sales of about $2.4 billion. PTT’s backing, Allnex management hopes, will help it expand into Asia. In the US, PTT has had a large petrochemical complex on the drawing board since 2015. But its air permits from the state of Ohio expired in February. The company said at the time that it was seeking new permits that aligned with its goals of achieving net-zero carbon emissions by 2050. It subsequently unveiled a plastics recycling project for the state.

The main issue at Sasol for several years was a petrochemical complex in Lake Charles, Louisiana, that went $4 billion over budget and led to a major management shake-up. Another recent setback for the firm came in November, when South African regulators blocked the sale of its business in sodium cyanide to Draslovka, already a strong player in that field. Now there are signs of green shoots at the South African firm. Sasol and South Korea’s Lotte Chemical are studying the construction of a plant to make battery electrolyte solvents in Lake Charles or at Sasol’s complex in Marl, Germany. Sasol would provide the raw materials.

This is the first year in the Global Top 50 for Hengyi Petrochemical, a Chinese firm that primarily makes polyester and nylon 6. Hengyi affiliates recently started a massive refining and petrochemical complex in Brunei. The 2.1 million metric tons per year of p-xylene and benzene made in this new complex is being sent to China for conversion into the polyester raw material purified terephthalic acid and the nylon precursor caprolactam. The company is planning a second phase of the Brunei project, which will include an ethylene cracker and derivatives units.

Financial Associated Press, Dec. 9, Rongsheng Petrochemical announced that on December 8, 2021, the company received the notification letter on increasing shares from the controlling shareholder Zhejiang Rongsheng Holding Group Co., Ltd. ("Rongsheng holding"), and learned that it increased its total holdings of 72351316 shares of the company through centralized trading on the stock exchange from October 26, 2018 to December 8, 2021, with an increase ratio of 1%.

ZPC"s ample storage tanks help it to take advantage of crude price volatility by storing more during a contango market structure, when prices fall, the source added.

With the entire phase 2 project online, ZPC expects to lift its combined petrochemicals product yield to 71% from 65% for the phase 1 refinery, according to the source.

"Petrochemical contributes most of the companies" profit with healthy demand growth while the stakeholders have feedstock demand for their textile plants too," the source said.

Zhejiang Petroleum, a joint venture between ZPC"s parent company Rongsheng Petrochemical and Zhejiang Energy Group, planned to build 700 gas stations in Zhejiang province by end-2022 as domestic retail outlets of ZPC.

Established in 2015, ZPC is a JV between textile companies Rongsheng Petrochemical, which owns 51%, Tongkun Group, at 20%, as well as chemicals company Juhua Group, also 20%. The rest 9% stake was reported to have transferred to Saudi Aramco from the Zhejiang provincial government. But there has been no update since the agreement was signed in October 2018.

Plans for a joint Saudi Arabia-China refining and petrochemical complex to be built in northeast China that were shelved in 2020 are now being discussed again, according tosources close to the deal. The original deal for Saudi Aramco and China’s North Industries Group (Norinco) and Panjin Sincen Group to build the US$10 billion 300,000 barrels per day (bpd) integrated refining and petrochemical facility in Panjin city was signed in February 2019. However, in the aftermath of the enduring low prices and economic damage that hit Saudi Arabia as a result of the Second Oil Price War it instigated in the first half of 2020 against the U.S. shale oil threat, Aramco pulled out of the deal in August of that year.

The fact that this landmark refinery joint venture is back under serious consideration underlines the extremely significant shift in Saudi Arabia’s geopolitical alliances in the past few years – principally away from the U.S. and its allies and towards China and its allies. Up until the 2014-2016 Oil Price War, intended by Saudi Arabia to destroy the then-nascent U.S. shale oil sector, the foundation of U.S.-Saudi relations had been the deal struck on 14 February 1945 between the then-U.S. President Franklin D. Roosevelt and the Saudi King Abdulaziz. In essence, but analyzed in-depth inmy new book on the global oil markets,this was that the U.S. would receive all of the oil supplies it needed for as long as Saudi had oil in place, in return for which the U.S. would guarantee the security both of the ruling House of Saud and, by extension, of Saudi Arabia.

After the end of the 2014-2016 Oil Price War, Saudi Arabia had not only lost the upper hand in global oil markets that it had established alongside other OPEC member states with the 1973 Oil Embargo but it had also prompted a catastrophic breach of trust with its former allies in Washington. Consequently, the U.S. changed the effective terms of 1945 to: the U.S. will safeguard the security both of Saudi Arabia and of the ruling House of Saud for as long as Saudi not only guarantees that the U.S. will receive all of the oil supplies it needs for as long as Saudi has oil in place but also that Saudi Arabia does not attempt to interfere with the growth andprosperity of the U.S. shale oil sector. Shortly after that (in May 2017), the U.S. assured the Saudis that it would protect them against any Iranian attacks, provided that Riyadh also bought US$110 billion of defense equipment from the U.S. immediately and another US$350 billion worth over the next 10 years. However, the Saudis then found out that none of these weapons were able to prevent Iran from launchingsuccessful attacksagainst its key oil facilities in September 2019, or several subsequent attacks.

Concomitant with this weakening of relations between Saudi Arabia and the U.S. came a drift towards Russia first and then China. Given the reputational damage done to the perceived power of Saudi Arabia and its OPEC brothers by their inability to destroy or disable the growing threat from U.S. shale oil to their former dominance in the global oil markets, their attempts to pull oil prices back up to levels at which they could begin to repair thedamage done to their economiesby the 2014-2016 Oil Price War towards the end of 2016 also failed. At that point, fully cognisant of the enormous economic and geopolitical possibilities that were available to it by becoming a core participant in the crude oil supply/demand/pricing matrix, Russia agreed to support the OPEC production cut deal in what was to be called from then-on ‘OPEC+’, albeit in its own uniquely self-serving and ruthless fashion, again analyzed in-depth inmy new book on the global oil markets.

Given Russia’s significant leverage in the Middle East by dint of its pivotal position in making the OPEC deal credible in terms of being able to affect global oil prices, China also began to more aggressively leverage its own power with the group and in the region by dint of its being the world’s biggest net importer of crude oil and its increasing use of checkbook diplomacy. Nowhere were the two elements more in evidence than in China’s offer to buy the entire 5 percent stake of Aramco in a private placement. This was designed to enable Saudi Crown Prince Mohammed bin Salman to save face, given hisunsuccessful attempts from 2016 to 2020to persuade serious Western investors to have any significant part in the company’s initial public offering. Shortly after the offer was made,China was referred toby Saudi’s then-vice minister of economy and planning, Mohammed al-Tuwaijri, as: “By far one of the top markets” to diversify the funding basis of Saudi Arabia. He added that: “We will also access other technical markets in terms of unique funding opportunities, private placements, panda bonds and others.” In a similar vein, andjust last year, Saudi Aramco’s chief executive officer, Amin Nasser, said: “Ensuring the continuing security of China’s energy needs remains our [Saudi Aramco’s] highest priority — not just for the next five years but for the next 50 and beyond.”

Between the end of the 2014-2016 Oil Price War and now, there have been multiple high-level visits back and forth between Saudi Arabia and China, beginning most notably with the trip of high-ranking politicians and financiers fromChina in August 2017 to Saudi Arabia, which featured a meeting between King Salman and Chinese Vice Premier, Zhang Gaoli, in Jeddah. During the visit, Saudi Arabia first mentioned seriously that it was willing to consider funding itself partly in Chinese yuan, raising the possibility of closer financial ties between the two countries. At these meetings, according to comments at the time from then-Saudi Energy Minister, Khalid al-Falih, it was also decided that Saudi Arabia and China would establish a US$20 billion investment fund on a 50:50 basis that would invest in sectors such as infrastructure, energy, mining, and materials, among other areas. The Jeddah meetings in August 2017 followed a landmark visit to China by Saudi Arabia’s King Salman in March of that year during which around US$65 billion of business deals were signed in sectors including oil refining, petrochemicals, light manufacturing, and electronics.

Later, the first discussions about the joint Saudi-China refining and petrochemical complex in China’s northeast began, with a bonus for Saudi Arabia being that Aramco was intended to supply up to 70 percent of the crude feedstock for the complex that was to have commenced operation in 2024. This, in turn, was part of a multiple-deal series that also included three preliminary agreements to invest in Zhejiang province in eastern China. The first agreement was signed to acquire a 9 percent stake in the greenfield Zhejiang Petrochemical project, the second was a crude oil supply deal signed with Rongsheng Petrochemical, Juhua Group, and Tongkun Group, and the third was with Zhejiang Energy to build a large-scale retail fuel network over five years in Zhejiang province.