Refining margin rises at Sinopec as imported wine sits unsold
Sinopec's first-half profit rose 19.3 per cent with wider refining margins. China's bottled-wine imports from the European Union fell amid unsold stock and weaker demand.
Sinopec reported net profit of 25.63 billion yuan for January through June under Chinese accounting standards, up from 21.48 billion yuan a year earlier. First-half profit therefore rose 19.3 per cent. The company also set aside 16 billion yuan for asset impairment during the period. Wider margins in refining supported the overall result despite the larger provision. The increase came while crude throughput declined and the chemicals division remained loss-making, so the profit improvement rested more on stronger returns from refining units than on higher processing volumes.[1]
New crude sources widened the refining margin
Crude throughput fell 5.6 per cent to 113.31 million tons, or 4.57 million barrels a day, while the Strait of Hormuz remained largely closed from March. After Sinopec broadened crude sourcing beyond the Middle East, its refining margin rose 44.1 per cent, gaining 139 yuan to reach 453 yuan a ton. Refining operating profit increased 381.5 per cent. The chemicals division still recorded an operating loss above 200 million yuan, although that loss narrowed by about 4 billion yuan. The company projects crude throughput of 113 million tons from July through December.[1]
European wine met weaker demand and old stock in China
Chinese customs data show that bottled-wine imports from the European Union fell 16.6 per cent by volume in the first half of 2026. Their value declined 7.9 per cent to 251 million dollars. Arsen Zhao, a Chinese-French wine merchant in Paris, said products imported earlier remained unsold and were weighing on new orders; some high-end French wines now sell for less in China than in France. Slower income growth, changing drinking habits and Beijing's tighter scrutiny of lavish banquets and official entertaining have weakened demand, prompting producers to seek buyers in other markets.[2]
