China's May refinery throughput at 9-month low on plant overhauls

Reuters

a day ago

June 16 (Reuters) - China's crude oil throughput declined by 1.8% in May from a year earlier to the lowest level since August, official data showed on Monday, as maintenance at both state-owned and independent refineries curbed operations.
The world's second-largest oil consumer processed 59.11 million metric tons of crude in May, or about 13.92 million barrels per day (bpd), according to data from the National Bureau of Statistics.
The daily processing rate in May dropped from April's 14.12 million bpd.
Chinese consultancies reported that domestic refinery utilisation rates continued to fall. They reached the lowest level in May since the fourth quarter of 2022, according to Chinese consultancy Sublime China Information.
The average operating rate of primary refining units dropped to 72.87% in May. A total of 11 refineries were either fully shut or undergoing partial maintenance, cutting gasoline and diesel output by 1.421 million metric tons per month, the consultancy said.
However, independent refiners in Shandong saw a modest recovery in profit. The theoretical average margin for Shandong teapots was 293 yuan ($40.8) per metric ton in May, up 23 yuan from April, as the decline in revenue was less than the reduction in raw material costs, the consultancy added.
As several state-run refineries are expected to complete turnarounds in late May and early June, throughput may well rebound in June, said analytics firm Vortexa.
NBS data also showed that China's domestic crude oil production in May rose 1.8% from a year earlier to 18.47 million metric tons, or 4.35 million bpd.
Year-to-date crude output rose 1.3% to 90.28 million tons, or 4.36 million bpd.
Natural gas production increased 9.1% year-on-year to 22.1 billion cubic meters last month, with output in the first five months rising 6%, the data showed.
(metric ton = 7.3 barrels for crude oil)