China's third batch of refined oil export quotas has been officially released per market sources, with a volume of 12 million tonnes, in line with OilChem estimate. The 2023 export quotas totaled 39.99 million t up to now, an increase of 2.74 million t compared with last year.
Source: OilChem
The third batch has been highly anticipated by the market players in light of the robust export market.
China's actual refined oil exports were 23.87 million t over January-July, consuming 85.27% of the first two batches of quotas. And the volume would exceed the existing quotas by 10% when counting in the planned exports in August and September at 6.97 million t. Therefore, the third batch is released just in time to answer the market needs.
Source: General Administration of Customs of China
The animated export market was supported by the firm export profits. Taking the ports in South China as an example, the export profits of gasoline and gasoil surged 5,047.36% and 627.42% respectively as of August 31 compared with mid-June.
Source: OilChem
The export market momentum is expected to be sustainable on the backdrop of relatively high export profits for both gasoline and gasoil. Though domestic prices are likely to pick up on reviving demand amidst the seasonal high, the prices in Singapore are projected to hover at a high level, benefiting the export market.
Written by Aggie Hu, huchenying@mysteel.com
Edited by Navy Liu, liuchuanjun@mysteel.com