China almost halved its gasoline exports in July from the previous month to 741,000 mt, with Singapore still the top destination at 443,000 mt, detailed data released by the General Administration of Customs showed Aug. 20.
While Singapore remained the biggest recipient, volumes there hit a 13-month low in July, falling 29.4% from June to 627,000 mt. Still, over the first seven months of the year Singapore took about 4.63 million mt of China’s gasoline outflows, or 44.9% of the total. This compares with 52% of the total, or 4.7 million mt, in the same period last year.
Over the first seven months of the year, China exported 10.31 million mt of gasoline to overseas markets, up 14.5% year on year.
The bulk of those incremental volumes headed for Pakistan and Indonesia. Pakistan imported 853,000 mt of gasoline from China over January-July, from zero in the same period last year, while Indonesia imported 813,000 mt over the same period, up 191.2%.
In July, in addition to 660,000 mt exported via the general trade and processing trade route, about 77,650 mt was exported under the custom warehouse trading route. Over the first seven months of the year, a total of 396,600 mt was exported under this route.
China’s refiners mainly export oil products under the general trade route and processing trade route.
Gasoil
China’s gasoil exports in July fell 41.1% month on month to 1.39 million mt, a 10-month low.
The fall in volumes to the Philippines was less pronounced at only 9.2% month on month to 533,000 mt, with the country still the leading importer of Chinese gasoil.
Volumes to Australia in July fell 46.4% year on year to 236,000 mt, although the country remained the second-largest recipient.
Over the first seven months of the year, gasoil volumes to Australia rose 95% year on year to 1.84 million mt, still the third-largest recipient.
The higher gasoil imports by Australia were largely supported by robust demand in the mining sector as declining supplies declined due to refinery closures.
Over the first seven months of the year, China exported around 12.96 million mt of gasoil under the general trade route, with another 62,000 mt under the processing trade route.
But it exported a total of 1.37 million mt under custom warehouse trading, which could be marine gasoil exported for ships plying international waters. This portion is down from 1.19 million mt exported during the same period last year.
Quotas
Taking the combined gasoline, gasoil and jet fuel exports of 29 million mt over the first seven months of the year, that leaves about 7.54 million mt of export quota available for the rest of the year.
This suggests the country has to slash its monthly outflows by about two thirds over August-December compared with volumes so far this year, meaning most refineries will have to make good use of the quotas.
Except for a few of PetroChina’s refineries, which are aiming to increase August exports slightly with the new quota allocation, most of Sinopec’s export refineries are generally more cautious and will not increase exports immediately.
“We expect exports to remain low in August and they could increase slightly from September,” said Sun Jianan, an analyst with S&P Global Platts Analytic
Source: Platts