Data released on Saturday indicates that China's total fuel oil imports decreased by 11 percent during the first half of 2024, amidst weak refining margins and low fuel demand. According to the General Administration of Customs, the imports amounted to 11.95 million metric tonnes, equivalent to approximately 75.88 million barrels.
Chinese refineries usually acquire fuel oil as a feedstock for refining. Imports reached a ten-year high in 2023 due to independent refineries increasing their purchases of discounted oil mixed with Russian supplies. However, this year's buying activity has decreased, with monthly imports falling towards the end of the second quarter. Data from the General Administration of Customs shows that June imports were 1.49 million metric tonnes, a 31 percent drop from May and a 45 percent decrease from the previous year.
Higher crude oil prices and reduced demand for refined fuels have negatively impacted refining margins and reduced the desire for feedstocks. The import figures encompass purchases under ordinary trade, which are subject to import and consumption taxes, as well as imports into bonded storage. Additionally, fuel oil exports for bunkering purposes totaled 9.05 million tonnes in the first half of 2024, marking an 8.3 percent decrease from the same period in 2023.
Despite a global increase in marine fuel demand due to shipping disruptions in the Red Sea, exports have declined. These exports are primarily measured by sales from bonded storage for ships operating on international routes.
