MOSCOW (MRC) -- China’s daily crude oil throughput rebounded in April from a 15-month low in March as refiners cranked up operations to meet renewed fuel demand after lockdowns imposed to prevent the spread of the coronavirus outbreak were eased, said Reuters.
The country processed a total of 53.85 million tonnes of crude oil last month, data from the National Bureau of Statistics (NBS) showed on Friday, equivalent to about 13.1 million barrels per day (bpd). That was some 11% higher than 11.78 million bpd in March.
The agency said on Friday it had adjusted the database of industrial enterprises it uses to help compile a range of production numbers. On that basis, Friday April’s crude oil throughput was 0.8% above the year-ago level, it said; a Reuters calculation using NBS data from last year put the rise at 3.4%.
“In terms of year-on-year percentage change, we only included the companies that existed in both years,” a spokesperson from agency’s media relations department told Reuters. “For instance, if a company existed in 2019 but does not exist in 2020, then their figure in 2019 will not be included in 2020 year-on-year percentage calculation."
Analysts said it would not be not surprising for the agency to revise its year-ago numbers. “We’ve noticed over the years that the bureau tweaks the refinery output figures often towards end of the year due to under-reporting or delays in data providing by some plants,” said Seng Yick Tee, senior director at consultancy SIA Energy.
Crude runs during the first four months of 2020 in China were 203.48 million tonnes, according to Friday’s official data, equal to 12.28 million bpd, representing a 3.4% drop from a year earlier. Based on Reuters’ calculations using numbers the bureau published last year, the January-April decline would have been 1.9%.
The country’s gasoline and diesel consumption is expected to pick up in the second quarter as factories resume operations and travel restrictions are further relaxed. Traffic congestion in big Chinese cities has exceeded levels before the coronavirus outbreak as commuters use more private cars to avoid public transport.
Amid the demand pickup, China’s independent, or ‘teapot’ refineries were motivated to ramp up production to take advantage of high profit margins of 870 yuan (USD122.63) a tonne in April after crude oil prices dropped, Wang Zhao, an analyst at oil industry information consultant Sublime said, speaking before Friday’s data release.
Ethylene and propylene are feedstocks for producing PE and PP.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 383,760 tonnes in the first two month of 2020, up by 14% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased due to the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market were 192,760 tonnes in January-February 2020, down by 6% year on year. Homopolymer PP accounted for the main decrease in imports.
MRC