China's crude oil imports in October fell from a record high the previous month to its lowest on a daily basis since January, data showed on Tuesday, as independent refineries cut back purchases because of higher prices and dwindling import quotas. Figures from the General Administration of Customs showed China brought in 28.79 million tonnes, or 6.78 million barrels per day (bpd) of oil last month, which was down by 1.26 million bpd compared to the record imports in September.
October imports, however, were still 9.3 percent higher from a year earlier. For the first 10 months of 2016, total crude imports expanded by 13.6 percent, or nearly 900,000 bpd, from the same period a year ago, according to customs numbers. "The top state majors were keeping imports fairly steady, but the teapots buying was slowing because of higher oil prices and as some of them are near finishing off their quotas for this year," said a senior state oil trader based in Beijing who regularly deals with the independents.
More than a dozen independent refineries, nicknamed teapots due to their relative small processing capacity, have been a key driver for China's robust crude imports this year, when the country twice surpassed the United States as the world's largest crude importer. But with slowing government approvals for new quotas, the teapots importing pace is set to ease towards the last months of the year, added the senior trader.
China's refined oil products exports jumped 24 percent from the same time a year ago to 4.07 million tonnes, about 919,000 bpd, though compared to September overseas shipments slowed by 5.3 percent, the data showed. China's overall October exports of goods fell 7.3 percent from a year earlier, while imports declined 1.4 percent, both dropping more than expected, the customs data showed.