Sinochem reported that its net profits had fallen 10.18% on annual basis to RMB 711.51 million ($ 88.94 million) in 2005 due to a sharp plunge in coke prices over the period. Decrease in earnings from the coke business has substantially eroded profit growth in other business sectors including rubber trading and chemical logistics and trading, the company said.

Sinochem, which has about 11% of China's coke export market, blamed the significant drop in coke prices due to oversupply among domestic producers as well as slowing demand growth from downstream consumers. It forecast that the coke price would continue to fall this year.