Aug Shandong Independent Refinery Refined Oil Output Down 1.5% M-O-M
In August, the average operating rate of CDUs at Shandong independent refineries was 74.52%, down 0.43% M-O-M. During the month, Shandong Zhonghai Fine Chemical and Shandong Yuhuang Shengshi Chemical shut down their units and started capacity integration. The CDU and FCC units at Shandong Fuyu Chemical were temporarily shut down for maintenance and were restarted within the month. The coking unit at Shandong Chambroad Petrochemical was shut down for maintenance, resulting in a decrease in its diesel output. Meanwhile, Shouguang Lianmeng Petrochemical restarted its units, and Shandong Jincheng Petrochemcial raised its operating rate. The units at other Shandong independent refineries ran steadily. On the whole, the average operating rate of CDUs at Shandong independent refineries in August inched down from July.
According to SCI’s statistics, in August, the total output of gasoline and diesel at Shandong independent refineries was 8.3435 million mt, down 0.127 million mt or 1.5% M-O-M. Therein, the gasoline output was 2.9575 million mt, down 0.1085 million mt or 3.54% M-O-M. The output of diesel was 5.386 million mt, down 0.0185 million mt or 0.34% M-O-M. Though the output of gasoline and diesel decreased from July, it remained at a high level.
In August, both bullish and bearish factors existed in the international crude oil market, and the international crude oil prices kept fluctuating within a narrow range, giving limited support to the gasoline and diesel market in China. Therefore, the overall prices of gasoline and diesel also continued fluctuating marginally.
In terms of gasoline, the number of rainy days in East China, North China, South China and Central China decreased significantly, and many people were willing to travel by cars, supporting the demand for gasoline. Meanwhile, the sales of automobiles performed well, stimulating the gasoline consumption volume as well. However, the diesel demand was relatively moderate, and there were few bullish factors in the diesel market supporting the diesel prices to grow. Accordingly, the overall sales of gasoline and diesel at Shandong independent refineries were steady, and the inventory at most refineries was at a moderate level. Up to September 3, the gasoline storage capacity utilization at Shandong independent refineries was 22.76%, down 2.19% M-O-M, while the diesel storage capacity utilization at Shandong independent refineries was 29.99%, up 0.23% M-O-M.
In September, the number of rainy days in China will decrease further, and the operating rates at projects, infrastructural constructions, logistics, etc. will rise. Moreover, the fishing-off season will end, and both the gasoline and diesel demand will enter their peak seasons. However, the relatively high gasoline and diesel social inventory may curb the increase in gasoline and diesel prices. Accordingly, SCI reckons that the prices of gasoline and diesel at Shandong independent refineries may only grow slightly. Meanwhile, due to the unit shutdown at Shandong Zhonghai Fine Chemical, Shandong Yuhuang Shengshi Chemical, CNOOC Dongying Petrochemical, etc. and the operating rate reduction plans at some refineries, the output of gasoline and diesel in September may drop to some extent, but the overall gasoline and diesel supply in the market will remain sufficient.
