China's refined oil exports totaled 4.55 million tonnes in March, rising 58.28% month on month and 37.13% year on year, primarily due to less than expected domestic demand and moderate export profits, per data from the General Administration of Customs of the People's Republic of China (GACC).
Source: GACC
The March exports consisted of 1.15 million tonnes gasoline, 1.42 million tonnes gasoil, and 1.98 million tonnes kerosene, a monthly increase of 57.93%, 125.67%, and 30.60% respectively.
Source: GACC
Concerning gasoil, the domestic consumption weakened in March compared with February when the traveling needs boomed during the Chinese New Year holiday. Meanwhile, the gasoline prices in Singapore rose rapidly amidst constantly rising international crude oil prices, leading to lucrative export profits.
For gasoil, the export profits narrowed in March but were kept at a moderate level. More importantly, the domestic consumption recovery was less than expected in the absence of strong bulls, resulting on palpable oversupply.
Source: Mysteel OilChem
The exports of kerosene maintained momentum thanks to constantly warming aviation market in Asia.
Looking ahead, it is expected that China's refined oil exports will pull back in April due to an expected cut in domestic supply during intensive maintenance, and robust domestic consumption in spring.
Written by Aggie Hu, huchenying@mysteel.com
Edited by Navy Liu, liuchuanjun@mysteel.com