China’s Aug diesel exports double as domestic stocks overflow

China’s diesel exports in August doubled the levels in July to 1.09 million tonnes, customs data showed on Wednesday, as refiners shipped fuel overseas despite poor export margins to reduce brimming domestic oil product inventories.

The rebound in exports reversed four months of declines.

Exports last month rose versus 550,000 tonnes in July but still 18% below the same year-earlier level, data from the General Administration of Customs showed.

Gasoline exports last month were up 15% from a year earlier at 1.22 million tonnes, and versus 1.12 million tonnes last month. Jet kerosene exports slumped 75% from a year earlier to a meager 300,000 tonnes.

China’s refinery throughput [aCNPDRFCO] soared to a record 59.56 million tonnes in July, and to the second-highest ever in August, as the country recovered from the worst impacts of coronavirus pandemic earlier this year. Gasoline and diesel inventories have swelled as a result of the record volumes and processing profit margins have also dropped. (Full Story) (Full Story)

“China faced massive inventory pressure especially of diesel. We expected diesel exports to stay high for September too,” said a Beijing-based trader.

The Customs data also showed that China’s liquefied natural gas (LNG) imports in August rose 16% from a year earlier to 5.96 million tonnes last month, the highest level since at least March as China did not report January and February breakdowns.

Below is the latest customs data on fuel exports and imports of LNG in millions of tonnes. Percentage changes in the table are based on Reuters calculations.
Exports

Aug

y/y %change

Jan-Aug

y/y %change

Gasoline

1.22

15.3

10.22

8.8

Diesel

1.09

-17.6

12.99

-12.7

Jet kerosene

0.30

-74.8

8.38

-23.8

Imports

LNG

5.96

16.3

42.17

10.3