Crude imports for China’s independent refineries fell 14.4% in November to 11.9 million mt, or 2.91 million b/d, from the record high of 13.9 million mt in October, a monthly survey by S&P Global Platts showed Thursday.
Crude imports for China’s independent refineries fell 14.4% in November to 11.9 million mt, or 2.91 million b/d, from the record high of 13.9 million mt in October, a monthly survey by S&P Global Platts showed Thursday.
Despite the declines, including the 0.2% year-on-year decrease, the November volume remained the second highest monthly level in 2019.
Meanwhile, a higher average run rate in the sector than in October suggested a stock draw.
The latest survey of 44 independent refineries in Shandong conducted by local information provider JLC showed that the sector’s November operation rate was around 69.8%, about three percentage points higher from October.
“The refining margins for most refineries are still good,” said an analyst with JLC. Refining margins were supported by the low-pour point gasoil demand in winter, although the driving demand for gasoline have waned slightly, refinery sources revealed.
Total crude oil imports for the sector stood at 118.14 million mt, up 26.8% year on year, Platts data showed.
While looking for December, it is likely the total imports will stay unchanged or slightly lower in the coming months, sources said.
“Refineries still booked heavily for December arrival cargoes in order to use up crude oil import quota by year-end, so it’s likely the arrivals will keep high,” said a trade source in Shandong.