A Glance of China Oil Market 20260323

Weekly News

China naphtha crackers slash rates on supply fears

China naphtha cracking utilization fell to 82.44% as of the week ending March 13, down 5.75 percentage points week-on-week and 6.19 points since late February. Over 20 mln t/y naphtha cracking capacity have been affected, with units in South China, including Sinochem Quanzhou, CNOOC and Shell, and Sinopec Maoming Petrochemical, experiencing notable rate cuts or shutdowns, according to OilChem. As the key product for naphtha cracker, ethylene saw a production of 785,600 tonnes in China during the week ending March 13. Read Full Story

Sinopec's 10% throughput cut signals precaution rather than supply stress

Set against heightened tensions in the Middle East and rising shipping risks around the Strait of Hormuz, the move has raised concerns over whether China's crude supply is tightening. At this stage, however, the cut appears better understood as a risk-management response by refiners rather than evidence of an imminent supply shortage. Some refiners with heavier exposure to Middle Eastern crude may face delays in feedstock arrivals if logistics conditions deteriorate. Even so, China's overall domestic oil products market remains adequately supplied, and current fundamentals do not point to an immediate supply gap. Read Full Story

CSSC initiates construction of 99,000 CBM VLEC

Jiangnan Shipyard (Group) under China State Shipbuilding Corporation (CSSC) started the construction of the very large ethane carrier (VLEC) with 99,000 cubic metre (CBM) on March 10, according to news published on the website of Shandong Marine Energy. The VLEC adopts the self-developed B-type cargo containment system (BrillianceE®), and its comprehensive technical indicators are at the international leading level. It is 230 meters in total length and is suitable for transporting various liquefied gases such as ethane, ethylene and LPG. It is the best ship type tailored for long-distance ethane transportation from the US. Read Full Story