China’s crude oil imports rebounded in July from a six-month low in June as state-owned refiners returned from a maintenance season. However, private refiners slowed restocking amid Beijing’s new tax and a crackdown on the misuse of oil import quotas. According to customs data, China’s crude oil imports totaled 41.24 million tons (9.71 million bpd) last month, compared to 40.14 million tons in June and 51.29 million tons in July 2020. For the first seven months, China imported 301.83 million tons (10.39 million bpd) of crude oil, a decrease of 5.6% from a year earlier.
Market sources said state refiners ramped up their throughput after completing maintenance. In contrast, feedstock demand from independent refiners fell amid weak margins, high oil prices, and probes on the misuse of import quotas. China’s private refiners imported 12.37 million tons of feedstocks in July, a decrease of 13.5% month-on-month and 37.6% year-on-year. Average operating rates at independent refiners in Shandong fell to a year-to-date low of 63% in late July.
The data also showed that China exported 4.64 million tons of refined product in July, increasing by 44.5% year-on-year but decreasing by 28.0% month-on-month. Total natural gas imports, including piped gas and LNG, were up 27.1% year-on-year to 9.34 million tons.
