Chinese refiners have sold only around 500,000 tons of diesel for November loading after stockpiles hit multi-year lows.
Chinese refiners have sold only around 500,000 metric tons of diesel for loading in November so far, according to traders and Reuters calculations based on trade data, after a surge in exports since July sent domestic stockpiles to multi-year lows. Diesel exports rose to multi-year highs of 1.33 million tons in August and 1.8 million tons in September after China began relaxing export controls in July.
Preliminary estimates from five trade and industry people showed total diesel exports this month could ease to under 800,000 metric tons, which would be the lowest since July based on customs data. At least two cargoes are still scheduled to load after mid-November. Traders said export cuts have become necessary as domestic stocks have fallen amid steady local demand and lower-than-expected refinery output.
Commercial diesel stocks fell to 11.1 million tons by the end of October, the lowest since Oilchem began records in 2011. Wholesale diesel prices in Shandong province rose above 10,000 yuan per ton, the highest since 2018, according to Oilchem. Chinese refiners have also been limiting diesel sales to major domestic end-users and dealers over the last week or so, according to a Guangdong-based wholesaler and an SCI analyst.
Source: Reuters
