CHINA DATA: Nov gasoline, gasoil exports decline on month, jet fuel inches up
China’s gasoline and gasoil exports took a break in November from the highs reported in October amid improving domestic demand, while jet fuel outflow inched higher as demand from international flights continue to recover, data released by the General Administration of Customs showed Dec. 24.
In November, the country’s gasoline outflow slumped 33.9% to 1.26 million mt from the record high 1.91 million mt in October, the GAC data showed.
But the volume is expected to surge again in December as new quota holder, the privately-held Zhejiang Petroleum & Chemical, planned to maximize usage of its first 1 million mt oil product export quota to send at least 500,000 mt of gasoline overseas by year-end.
To ease the logistics bottleneck, the eastern China-based refiner even loaded its cargoes from Gaolan port in southern China Zhuhai city, S&P Global Platts reported previously.
As a result, China’s gasoline exports may hit another record high this month before a reduction in January, information collected by Platts showed.
The retreat comes after improving demand and rising prices in the domestic market recently, prompting exporting refiners to save more barrels at home in January after destocking activities ahead of the year-end book closure.
ZPC was said to have cut its gasoline exports to about 300,000 mt for next month, market sources said.
Gasoil exports in November also fell 11.6% to 1.92 million mt from a six-month high of 2.17 million mt in October, the GAC data showed.
The lower outflow was attributed to strong domestic demand since mid-November and rising prices on the back of bullish international crude, traders and analysts said.
Export volumes of the fuel is likely to continue on a downward trend in December and January, information collected by Platts showed.
The state-owned Norinco, another new quota holder and a key gasoil producer, is less aggressive in exporting than ZPC.
In December, Norinco only loaded 50,000 mt of gasoil to the Philippines and planned to skip exporting in January, according to a source with knowledge of the matter.
“We prefer to sell more in the domestic market next month,” the source said on Dec. 23.
Moreover, oil giants PetroChina and Sinopec have plans to cut gasoil exports to meet domestic demand amid steady to lower throughput in December and January, according to information gathered by Platts.
Jet fuel exports, on the other hand, extended its recovery to a five-month high of 460,000 mt in November, the GAC data showed.
Sources at exporting refineries said most of the barrels went to international airports in China given the increase in the number of flights overseas.
However, the jet fuel export volume remained 71.5% lower than the 1.61 million mt recorded in the same month last year, according to the GAC data.
All these resulted in China’s gasoline, gasoil and jet fuel exports dropping 15.4% year on year to 42.37 million mt during January-November.
In contrast, Beijing released quotas totaling 59.03 million mt for the export of fuels in 2020, up 5.4% from 56 million mt in 2019.