BEIJING: China’s exports of three major fuel products fell across the board in December from the previous year, customs data showed on Thursday, as export quotas ran low toward the end of the year and domestic fuel demand picked up from a COVID-era slump.
Diesel exports, which account for the biggest share of refinery output, slid 76.0% in December to 670,000 metric tons, General Administration of Customs data showed. Volumes also fell significantly month-on-month from November’s 1.16 million tons.
Total diesel exports for 2023, however, remain 26% above 2022 levels, when diesel shipments fell to 10.94 million tons for the year amid declining refinery throughput and limited export quotas for much of the year.
Domestic diesel demand in China remained weak through much of 2023, with an ongoing downturn in the property sector and sluggish exports suppressing demand from the construction and manufacturing sectors.
Gasoline shipments of 770,000 tons were down from November’s 890,000 tons, and 59.9% lower on the previous year’s 1.91 million tons, when a massive COVID-19 outbreak following the easing of pandemic restrictions reduced domestic travel.
Jet fuel exports stood at 1.53 million tons, down marginally from November’s 1.59 million tons, and 11% lower than last year’s 1.72 million tons.
Domestic kerosene demand continues to benefit from a fully recovered domestic travel market, with internal flight volumes already above pre-pandemic levels and expected to step up further.
However, airline capacity in and out of China in December last year was down by around 39% on the same month in 2019, before the pandemic halted international travel, according to data from aviation analytics firm OAG.
China’s 2023 oil refinery output rises to record on fuel demand recovery
Fuel provided to international flights is counted as an export in customs statistics.
Regional refining margins rose last month, averaging around $7.4 per barrel in December versus $5.2 per barrel in November, continuing the previous month’s upward momentum.
Despite this, a shortage of quotas means that total refined fuel exports, which includes marine bunker fuel, have fallen consistently month-on-month since August.
Authorities had issued a final 15 million ton batch of refined fuel export quotas in September, taking the total for the year to 53.99 million tons.
China’s refinery runs in December slowed on the previous month to 14.16 million barrels per day (bpd). Average throughput for the full year 2023 hit an all-time record of 14.7 million bpd on recovering fuel demand and the launch of new refining facilities.
The data on Thursday also showed China imported 8.40 million tons of liquefied natural gas (LNG) in December, up 28.4% on the previous year. LNG shipments rose 24% from November as temperatures fell with the arrival of the winter heating season.
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