CHINA DATA: Crude throughput falls in April; imports boost stocks to record high

China's crude throughput fell 4.9% in April from an 18-month high in March, data from the National Bureau of Statistics released May 19 showed, leading onshore crude inventory to rise to an all-time high amid increased imports.

Chinese refineries processed 14.18 million b/d (58.03 million mt) of crude in April, down from 14.91 million b/d in March, the data showed.

The high tariffs announced by the US and China in April dampened demand, causing prices to fall and refining margins to drop, Platts reported earlier. Platts is part of S&P Global Commodity Insights.

"It is not an ideal time to raise throughput with crude prices falling for almost the entire month. The price of every barrel of refined products will be lower than the cost of the feedstock, as production takes time," a Sinopec source told Platts.

The benchmark Platts Dated Brent fell to $63.275/b on April 30 from $77.680/b on April 1.

Moreover, a total of 1.66 million b/d of refining capacity was offline for maintenance in April, up from 868,000 b/d since mid-March, Platts data showed.

As a result, state-run refiners and four private mega-refiners were estimated to process a combined 10.01 million b/d of crude in April, down 594,000 b/d month over month and marking the lowest level since July 2024, the data showed.

Further maintenance in May is expected to reduce crude throughput at China's state-run refineries by around 39.4 million barrels, up from 39.1 million barrels in April, according to the data.

Stocks at a record high

Meanwhile, China's crude oil production retreated 3.8% to 4.33 million b/d in April from an all-time high of 4.5 million b/d in March, NBS data showed.

Coupled with 11.74 million b/d of crude imports in April, the country's total crude supplies reached 16.07 million b/d, down 3.5% month over month.

The decline in crude supplies lagged behind the 4.9% drop in crude throughput, resulting in an estimated inventory build of about 56.81 million barrels in April, according to Platts' calculations.

China's onshore inventory rose to 1.12 billion barrels at the end of April, from 1.086 billion barrels at the end of March, Ursa Space Systems data showed, indicating an increase of about 45 million barrels.

Inventory level grew further to reach an all-time high of 1.17 billion barrels as of May 19, reflecting the refining activity observed by Platts. The previous record was 1.14 billion barrels in July 2023, Ursa data showed.

Some of these stockpiles were likely Iranian barrels for small independent refineries in Shandong province.

"The sanctioned crude arrivals in recent months have outpaced the actual throughput demand from the independent sector," a Beijing-based analyst said. "It is likely that the [participants] prefer to build onshore inventory amid uncertainties from sanctions, trade [tensions] and nuclear talks."

Crude inventory in Shandong reached 261.41 million barrels in April, the highest since 262.65 million barrels in December 2023, Kpler shipping data showed.

Tank space has tightened at Shandong's Dongying port, where sanctioned ships typically dock for small independent refineries, leading to limited capacity for incoming cargoes.

China's crude output and throughput in April

China's crude output and throughput over January-April

Notes: * was adjusted according to the % change provided by the NBS.

Source: China's National Bureau of Statistics