China Daily Oil Summary: Second Batch of Export Quotas Imminent

China is expected to issue its second batch of refined oil export quotas, with a volume of 18m mt, according to OilChem, citing market sources.

• State-owned refiners in China will reduce processing volumes to 41.38m mt in April, according to OilChem, cited by Bloomberg. This is equivalent to around 10.11m b/d, down around 2.4% on the month.
• China’s independent refineries in the Shandong Province are estimated to import 70% less Sokol crude in April and May compared with March arrivals due to higher prices, sources told S&P Commodity Insights.
• CDU utilisation rates at state-owned refineries are projected to continue falling in the week to April 11, according to OilChem.
• The arrival of feedstocks into independent refineries in Shandong province was 10.39m mt in March, up 3.87% on the month, according to OilChem.
• China’s construction sector demand for steel will remain limited due to poor availability of funds and the pace of progress on major projects, according to Wang Guoqing, director of the Lange Steel Research Center.
• China saw about 119 million domestic tourist trips made during the three-day Tomb Sweeping Day holiday, up 11.5% over the same period in 2019, data from the Ministry of Culture and Tourism showed. Domestic tourism revenue during the period totalled CNY53.95 billion, up 12.7% from the pre-pandemic level.