A Glance of China Oil Market 20260413

On the demand end, the gasoline demand is projected to contract post the Qingming Festival, coupled with the high prices. The gasoil consumption will likely stay flat with sustained support from spring planting, while the logistics and outdoor constructions are yet to pick up amidst high gasoil prices.

A Glance of China Oil Market 20260413

Weekly News

China's Mar refined oil exports plummet 24% MoM

China's refined oil exports showed palpable contractions in March amidst the ongoing conflict in the Middle East that has disrupted shipping through the Strait of Hormuz. To ensure domestic supply, the exporters have scaled back their March exports, prioritizing the domestic market needs. In detail, China's refined oil exports dropped 24% month-on-month and 47% year-on-year at around 1.21 million tonnes in March based on OilChem's tracking of the shipping fixture, which consisted of 0.28 million tonnes gasoline, 0.65 million tonnes gasoil, and 0.28 million tonnes kerosene. (the exports include those under general trade mode and exclude those exported to bonded zone) Read Full Story

PDH profit to face further losses in Q2 on higher costs, dim demand

The second quarter brought renewed pressure to China's propane dehydrogenation (PDH) sector, as persistently high feedstock costs collided with soft downstream demand. This imbalance led to a deepening inversion of profit margins, with losses expanding significantly compared to the previous quarter. Despite entering the traditional off-season for propane demand in the second quarter, international propane prices will remain high. China's PDH industry relies on imports for over 80% of its propane supply, with the Middle East serving as the core source region. However, regional conflicts have pushed up international propane prices. Compounded by shipping disruptions, the import cost of raw materials has risen sharply. Read Full Story

Strait of Hormuz disruption sends China naphtha price and crack spread to record highs

As of April 7, Shandong naphtha prices hit Yuan 8,796/tonne and the crack spread reached Yuan 1,450/t, both record highs. Geopolitical supply disruptions are the key driver: March imports plunged to a bare-bones 1.10-1.30 million tonnes, domestic refinery operating rate fell to 68.79%, spot sales were curtailed, and downstream precautionary restocking worsened the mismatch. However, uncertainties remain over the pace of import recovery, the extent of refinery run cuts, and the demand turning point will determine how long high prices can persist. Read Full Story