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Tight China State Refiner Margins Damping Runs: OilChem

REFINING

Chinese state-owned refiner margins are close to breakeven levels – while teapots are marginal after a run-up in futures prices and lackluster demand according to OilChem.

  • China’s four main state refiners will carry out planned maintenance on 25mn tons/yr of capacity October to December.
  • Chinese state refiners decreased refinery rates to 79.37% of capacity in week to Oct. 26 - the lowest since July 6. Meanwhile, teapots reduced them to 60.9% of capacity, the lowest since Sept. 8 according to OilChem.
  • OilChem flagged a lack of Q4 export quotas as another factor weighing on Chinese refiners.

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