OilChem: 6 refineries cut rates as Hormuz disruption bites, more to join

The Strait of Hormuz closure is disrupting China's refining sector, causing port delays, surging costs, and preventive output cuts of 7-20% at six refineries, with more expected to join in the near future. If the Strait remains shut, deeper cuts are expected post-March. In the meantime, refined oil exports will likely be halted to ensure domestic supply.

The Strait of Hormuz closure is triggering supply chain disruptions across China's refining sector, that is, the vessel delays have multiplied, port arrivals have plunged, and procurement costs are surging. In the near term, refineries are grappling with operational uncertainty. Over the medium-to-long term, forced cuts in capacity utilization