It is expected that the feedstock fuel oil arrivals at ports in Shandong Province and surrounding cities including Tianjin, Huanghua, and Lianyungang imported by independent refineries and traders will have amounted to 1.80 million tonnes in April, basically flat from that in March, per OilChem tracking of the shipping schedules.
Source: Mysteel OilChem
Specially, the arrivals of Russia fuel oil are estimated at 1.03 million tonnes, a new historical high since June 2023 and rising 33% month on month. And the arrivals of sources from other countries are projected to have dropped 34% MoM at 0.78 million tonnes in April.
As an alternative feedstock to crude oil, the independent refineries showed firm demand for feedstock fuel oil in the face of better refining efficiency as it can be used as the feedstock to not only CDUs but also other secondary refining units, despite relatively low CDU capacity utilization rates and poor refining profits in Shandong recently.
Written by Aggie Hu, huchenying@mysteel.com
Edited by Navy Liu, liuchuanjun@mysteel.com