China Refining Reverses in November

China refinery throughput fell in November m/m as independent refiners cut rates against tight export quotas and weak margins.

• China’s total refinery throughput was 59.53 million metric tonnes according to National Bureau of Statistics (NBS) figures on Friday -equivalent to 14.48 mn bpd, down vs October’s pace of 15.05 mn bpd.
• It is the lowest daily level since January-February period, during which run rates averaged 14.36 mn bpd.
• Weaker runs have hit crude China’s November crude imports falling back to 10.33 mn bpd – the lowest level since July.
• China independent refiners face higher competition for sanctioned barrels like Russian and Venezuelan which they have been used to receiving significant discounts on.
• Independent refiners were granted a 3 mn tonne fuel oil import quota late November due to feedstock tightness.
• Crude distillation unit utilisation rates at Shandong refiners have been depressed at between 55 and 57 per cent since late October according to OilChem.