China State-Owned Refineries’ Operating Rate Dropped in Mid-May

The average operating rate of CDUs at China’s state-owned refineries was 75.2% as of May 17, while that was 76.87% at the end of April, according to SCI.

Sinopec Shanghai Gaoqiao Company, Sinopec Tahe Company, PetroChina Sichuan Petrochemical and Sinopec Zhenhai Refining & Chemical are in the maintenance cycle. In addition, PetroChina Jilin Petrochemical has shut down all its units for maintenance. International crude oil prices are increasing, which leads higher production costs to the refineries. Although gasoline and diesel prices are expected to increase, the market demand for remains weak. Accordingly, the sales volume at state-owned refineries is not improving.

In the second half of May, no more units’ maintenance will be seen, and PetroChina Sichuan Petrochemical, Sinopec Tahe Company and Sinopec Shanghai Gaoqiao Company will finish their maintenance gradually. China’s state-owned refineries’ crude oil processing volume will increase a lot. Therefore, the average operating rate of state-owned refineries will increase at the end of May.