China Fuel Oil Imports Rebound to 1.81mn t in October

Chinese fuel oil imports rebounded in October to 1.81mn tons, up from 1.04mn tons in September, which marked a one-year low, data from the General Administration of Customs showed.

• October imports were boosted by strong demand from Chinese independent refiners amid tight crude oil import quotas.
• The government of Shandong province has asked Beijing for an additional 3mn tons of fuel oil import quotas for the remainder of 2023 to enable plants to raise output due to the shortage of crude oil import quotas. Current quotas for 2023 are set at 16.2mn tons, unchanged since several years.
• China imported 19.19mn tons of fuel oil in the January-October period, more than double on the year. But as refineries lower operational rates due to thinning margins, demand for refining feedstocks, including fuel oil, could be weakening in the remaining weeks of 2023.
• LSFO exports out of China continued to decline in October at 1.39mn tons, as some refineries temporarily shut down for maintenance and as refiners are close to running out of export quotas according to Reuters.
• LSFO output is forecast to decline during 4Q if the government does not issue new quotas according to JLC. China has so far issued three batches of LSFO export quotas totalling 14mn tons.