Bitumen Output at Independent Refineries Remained Low, While That at State-Owned Refineries Rose
Snapshot: Independent refineries made a breakthrough in customs clearance of the feedstock cutback bitumen in late June. The feedstock of some refineries was declared to customs constantly, but the bitumen output at independent refineries was affected by the problem to some extent. Yet, state-owned refineries may be active in bitumen production, and some refineries are expected to resume bitumen production. It is projected that the bitumen output is likely to increase in July.
Jun 2023 China Petroleum Bitumen Output
In June 2023, China’s bitumen output was 2,542.4kt, up 40.4kt or 1.61% M-O-M. The feedstock problem had an influence on the bitumen production at independent refineries in June. Thus, the bitumen output stayed low in June. However, the production profit of the bitumen industry was fairish. In addition, the market prices of coking products such as diesel were average. State-owned refineries were active in bitumen production, leading to a 32.02% Y-O-Y increase in the output in June.
The bitumen output at Sinopec increased, but that at independent refineries remained low.
The bitumen output at Sinopec showed an uptrend. In June, the output at Sinopec reached 847kt, up 60.4kt or 7.68% M-O-M. According to SCI, the production profit of bitumen at state-owned refineries in Jiangsu increased by RMB 517/mt or 7262% Y-O-Y. Driven by fairish profit, Sinopec maintained high enthusiasm for bitumen production, leading to an increase in output.
The customs clearance problem of cutback bitumen at independent refineries saw a breakthrough in late June. The feedstock of some independent refineries was declared to customs successfully. But in the whole month, the bitumen production at independent refineries in Shandong and Hebei was affected. The bitumen output at independent refineries decreased by 47.7kt or 3.44% M-O-M.
As the feedstock problem may be alleviated, the bitumen output is expected to ramp up in July.
According to SCI, the operating rate of the bitumen units in Shandong and North China hovered at an annually low level in early and mid-July. Hebei Kaiyi Petrochemical may resume production in mid and late July. The unit at Hebei Xinhai Chemical Group is about to finish maintenance. The units at Shandong Jincheng Petrochemical, Shandong Dongfang Hualong Group and Shandong Dongming Petroleum & Chemical Group are also scheduled to switch to bitumen production. It is projected that the operating rate of the bitumen units in Shandong and North China may rebound. The bitumen output at independent refineries is likely to increase.
Besides, Ningbo Keyuan Refined in East China also plans to resume bitumen production. Shandong Qicheng Petrochemical is scheduled to produce bitumen in late July. The bitumen output at Sinopec is expected to remain at the level of over 800kt. Thus, the overall bitumen output may increase in July. It is the bitumen demand peak season in Q3. The bitumen output is likely to rise in Q3.
All information provided by SCI is for reference only, which shall not be reproduced without permission.
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