A Glance of China Oil Market 20251222

On the demand end, the gasoline transactions are projected to extend the weakness with the end-market still in the traditional seasonal low. For gasoil, the outdoor projects will likely further slow due to poor weather conditions in northern China, while the rigid demand in southern China will offer certain support.

A Glance of China Oil Market 20251122

Weekly News

CEWC sets the tone for 2026: policy implications for the energy and chemicals sector amid elevated supply and demand constraints

In December 2025, China convened the Central Economic Work Conference (CEWC) to set the policy direction for 2026. Compared with the previous year, the conference delivered a decisive shift in official narrative: For the first time, it explicitly acknowledged that the contradiction between elevated supply and sluggish demand has become prominent. This marks a transition in policy priorities - from an emphasis on demand-side stimulus toward supply-side selection and structural upgrading, and from capacity expansion toward system-wide optimization. Read Full Story

Dawn's acquisition of Ningbo SK to further expand its EPDM capacity

On the evening of December 10, Shandong Dawn Polymer (hereinafter referred to as Dawn) announced that the company plans to use Yuan 5.16 billion (around $ 73.27 million) of its own funds to acquire an 80% equity stake in Ningbo SK Synthetic Rubber Co., Ltd. (Ningbo SK) held by SK Investment Hong Kong Co., Ltd. (SK Hong Kong), news published on Dawn's WeChat Official Account on December 10. Upon completion of the acquisition, Ningbo SK will become a subsidiary controlled by the company. On December 11, the equity signing ceremony was held at the Dawn New Materials Technology Industrial Park in Longkou, Yantai. Read Full Story

China PVC oversupply caused by capacity expansion leads to margins loss

In 2025, rapid expansion in China's PVC capacity led to a severe market oversupply, dragging down producer margins. Partial production cuts implemented later failed to reverse this weak trend. PVC capacity hit a phased high with 2.2 million tonnes/year of new capacity added in 2025, pushing China's total PVC capacity to 29.32 million t/y. Meanwhile, 440,000 t/y of outdated capacity was eliminated this year. Capacity expansion diverged significantly by process, ethylene-based PVC saw robust capacity growth due to large ethylene projects and coastal location advantages, while the expansion of calcium carbide-based PVC capacity remained limited amid policy and environmental constraints. Read Full Story