In April, several of China’s major refiners will increase crude throughput by a combined 755,000 bpd, or 10% from March level. The increase in domestic fuel demand attributed to the decision as the country is slowly recovering from the coronavirus outbreak.
Some sources said that Sinopec is likely to increase throughput by no less than one million tonnes or 400,000 bpd from March’s level. The company will produce near 4.5 million bpd, from February’s estimated 4 million bpd when the company cut two-thirds of its refineries’ capacities due to the slashed fuel demand.
However, the level would still be around 10% or 480,000 bpd lower from the 2019 average processing rate.
PetroChina seems to be increasing output by around 165,000 bpd to 2.92 million bpd, according to sources. CNOOC is planning to operate its 240,000 bpd Huizhou phase-1 plant on full capacity this month after increasing in March from the 8% cut in February.
In the private sector, Hengli Petrochemical Co Ltd. and Zhejiang Petrochemical Corp. are hiking production to almost 110% of their nameplate capacity at 400,000 bpd each. According to senior company officials, the level will increase from 100% last month.
Analyst Wang Zhao of commodities consultancy Sublime Information Co. opined that the fuel demand in China is rebounding at only a modest pace. “The resuming domestic economic activity is still offset by the sharp fall in exports to some extent,” he said.
The run rates are also prone to change as refiners are adjusting production plans by the week to quickly react to the volatile market.
Diesel demand shows the fastest recovery in the country as China strengthens spendings on infrastructure while manufacturing recovers. Gasoline consumption has also been recovering as people choose private transportations than public transportations.
However, the aviation fuel demand would still be in the slump as international flights are still massively canceled.
