A Glance of China Oil Market 20260330

On the demand end, as temperature rises, outdoor activities and spring travel are increasing, providing support to gasoline demand. Gasoil demand, however, remains weighed down by high prices, which continue to restrain logistics and construction activity. That said, spring plowing in some regions is providing certain support. Overall, gasoil demand is relatively steady

A Glance of China Oil Market 20260330

Weekly News

China refined oil inventory drawdown expected in Apr-May

According to OilChem's data, China's domestic refineries' CDU capacity utilization rates have continued to decline since the geopolitical conflicts in the Middle East. In the week ending March 26, the CDU capacity utilization rates of China's state-owned refineries averaged 71.99%, down 10.18 percentage points from February 26. The utilization rates of domestic refineries averaged 65.43%, down 8.59 percentage points during the same period. Since the outbreak of the conflict, a number of refineries have slowed the production due to expectations of tighter crude supply, narrowing refining margins, or high refined product inventories at some refineries. Read Full Story

Middle east tensions disrupt supply chains as China's PP market turns net exporter in Q1 2026

China's PP import market showed a clear pattern of lower volumes and firmer prices at the start of 2026. Total imports in January-February fell 13.32% year on year. In February alone, imports dropped to 206,000 tonnes from 307,900 tonnes in the same period of 2025, representing a 33.1% decline. At the same time, average import prices remained above USD 1,000/tonne, at USD 1,020.03/tonne in January and USD 1,010.81/tonne in February, both above the roughly USD 975-1,007/tonne range seen a year earlier. This sharp contraction was not only the result of faster China's domestic capacity additions and deeper import substitution. Read Full Story

Cracking C5 production plummets as geopolitical tensions reshape supply

According to the latest OilChem data, 65% of domestic cracking C5 producers have implemented output cuts. Weekly production has fallen to 65.4 kt as of March 26, 2026, marking a 5.1% decline WoW and a staggering 20.6% cumulative drop since late February. The contraction is driven largely by operational shifts in ethylene cracking units. Out of 34 domestic facilities producing byproduct C5, 22 are currently reporting reduced output, shutdowns, or a shift toward re-cracking C5 for internal fuel use. Read Full Story