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PetroChina makes first VLSFO exports after tax waiver

February 18/2020

MOSCOW (MRC) - PetroChina exported first batch of very low sulphur fuel oil (VLSFO) after China waived consumption taxes and granted rebates on value-added taxes on the clean marine fuels, as per Reuters

The 5,300 tonnes of VLSFO was produced by PetroChina's Liaohe refinery and was put into a bonded storage, managed by China Marine Bunker Co, via Dalian customs.

The tax waiver helps PetroChina to save around 2 million yuan (USD286,426.26).

As MRC informed earlier, PetroChina, Chinas second state refiner, is reducing refinery crude throughput by about 320,000 barrels per day this month versus its original plan as a spreading coronavirus hits fuel demand. PetroChina started the production cuts at the beginning of the month, but deepened the cuts from Monday, said the official with direct knowledge of the matter. The February cut is equivalent to about 10% of the refiners average production rate at around 3.32 million bpd.

As MRC informed earlier, polypropylene (PP) futures in China fell 5.99% on Monday due to concerns about a high level of material stocks in the market amid weak demand and limited supplies. So, PP futures for May 2020, most actively traded on the Dalian Commodity Exchange (DCE), on February 3 were at the level of CNY6 903 (USD983) per ton. Since the price reached the bottom, the auction closed that day. The Chinese market was closed from January 24 to February 2 due to the extension of the celebration of the Lunar New Year by the Chinese government.

According to MRC's ScanPlast report, the estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).
Author:Anna Larionova
Tags:PP, PE, ethylene, propylene, PetroChina.
Category:General News
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