China Expected to Increase Diesel Exports Next Month

China’s diesel exports are estimated at around 1.1 million to 1.2 million metric tons next month, according to China-based consultancies Longzhong and JLC.

• Kpler places diesel exports from China this month at around 887,000 tons.
• Chinese exporters are motivated to increase volumes because of strong export margins according to Reuters sources as well as optimism about new export quotas.
• The market expects Beijing to issue export quotas soon for between 9 million and 12 million tons of fuel products. The previous batch of quotas, issued in early May, were for 9 million tons.
• Platts reported at the start of the week that the quotas were out, quoting an official from a state owned company who said "The new allocation is out with Sinopec's volume topping among the quota holders, and we are arranging September exports. It looks [like there would be] no restriction on outflows for the rest of the year,"
• There have been no other reports of the quotas being released by other outlets.
• For gasoline, September exports are forecast at around 850,000 tons, almost steady from August - for jet fuel, September-loading exports are estimated to be about 1.6 million tons versus 1.7 million tons in August according to Longzhong and JLC.