August 21, 2025 [Reuters]- China’s Sinopec Shanghai Petrochemical Co swung to a net loss in the first half of 2025 as weaker demand hit sales of refining and chemical products, the company reported late Wednesday.

Sinopec Shanghai Petrochemical reported a net loss of 462.1 million yuan ($64.40 million) for the period from January to June, according to the report. That compares with 27.9 million yuan profit the prior year.

Net sales were 33.498 billion yuan, down 10.66% year-on-year, with net sales of refining products and chemicals falling 16.14% and 3.21%, respectively.

The company said the market remains challenging, with strong supply and weak demand, rising penetration of new-energy vehicles squeezing fuel demand, and the chemical sector still at a cyclical low.

Weaker market demand drove a 6.72% decline in refining product sales volumes. With crude prices falling, weighted average selling prices across all segments also declined from a year earlier, the company said.

Refinery throughput was 6.33 million metric tons in the six-month period, down 4.93% year-on-year.

Diesel production fell 13.56% and aviation fuel declined 8.62% year-on-year, while gasoline slightly rose 0.14%.

Output of ethylene, a key building block for petrochemicals, rose 24.34% to 273,300 tons in the first half.

Capital expenditure was 408 million yuan in the first half of 2025, mainly allocated to construction work for the Shanghai Petrochemical cogeneration unit clean-efficiency upgrade.

Sinopec Shanghai Petrochemical’s Shanghai-listed shares closed at 2.90 yuan on Wednesday, up 1.75% on the day. The stock is down 4.3% year-to-date, while the SSE Composite Index has risen 12.37% over the same period.