A Glance of China Oil Market 20260608

Weekly News

China's May refined oil exports up 22% MoM on shipping fixture

China's refined oil exports rebounded about 22% month-on-month in May, though volumes stayed low as export controls remained in place. Despite attractive export margins, ongoing Middle East tensions and uncertainty over Strait of Hormuz shipments led China to prioritise domestic supply, with allocations subject to monthly approval. June exports are down 8% from May's planned volume, with controls set to continue. Some exporters have yet to finalise their plans. Read Full Story

Coal-based chemical boom set to reshape China LPG trade flows

China's coal-based chemical projects will be commissioned intensively over 2026-2028. Coal-based LPG marketable volume reached 1.80 million tonnes in 2025, accounting for 7% of the national total. Coal-to-chemicals are far more profitable than oil-based routes, with margins exceeding Yuan 1,000/t. New capacity concentrated in Xinjiang and Inner Mongolia could reshape LPG trade flows, southern Xinjiang's outflows will shift southward, and the northwest trade hub may move toward Xinjiang. Read Full Story

China June propylene price to edge down as supply surplus widens

Oilchem estimates that in June, the propylene market will be driven by fundamentals again. Supply is steadily recovering while demand lacks momentum, leading to a widening supply surplus. Weakened cost support adds further pressure, pointing to a generally weaker market. The average price in the Shandong region is expected to average around Yuan 9,100/t in June, slightly down from May. Total domestic propylene supply in June is projected at about 4.95 million tonnes, with total demand around 4.84 million tonnes, widening the supply surplus to 110,000 tonnes and gradually building inventory pressure. Read Full Story