CHINA DATA: Oct gasoline exports rebound to record high of 1.91 mil mt

Singapore — China's gasoline exports hit a fresh record high of 1.91 million mt in October, surging 63.9% on the month, data from the General Administration of Customs released on late Nov. 23 showed.

This was marginally higher from the last record of 1.90 million mt registered in April.

It comes at a time when domestic supply was in a surplus state, prompting refineries to look toward the overseas market.

Gasoline demand in the domestic market has started to weigh down after the National Day holiday in early October. As a result, state refiners have to sell more in the overseas market even though the domestic market offered better margins, according to market sources.

GASOIL EXPORTS RISE

On the other hand, the gasoil exports also recovered to a six-month high of 2.17 million mt, or a growth of 81.7% from 1.19 million mt in September.

It also marked the third consecutive monthly rise since July.

With the jet fuel demand remaining weak worldwide, most refineries continue to cut the jet fuel output by mixing more jet fuel yields into the production of gasoil, thus leaving more gasoil to be exported.

This was echoed by PetroChina's officials earlier in November, with some of the company's refineries increasing gasoil exports from October.

NEW EXPORTERS JOIN

The country has so far exported 38.73 million mt of gasoline, gasoil, and jet fuel over January-October, down 12.8% from the same period of 2019, General Administration of Customs data showed.

S&P Platts Analytics expects key product exports to be at 1 million b/d, or 46 million mt, in 2020, 13 million mt lower than total allocated quotas, adding the new third batch of quotas allocated over the weekend.

The Ministry of Commerce has issued the third round of oil product export quotas for 2020 totaling 3 million mt under the general trade route to CNPC, Zhejiang Petroleum & Chemical and China North Industries Corp., or Norinco.

The new allocations would allow quota holders to export gasoline, gasoil as well as jet fuel, and will expire at the end of the year. This would lift total quotas for 2020 by 5.4% year on year to 59.03 million mt, although actual exports in the first three quarters have remained relatively lower compared with the same period in the previous year.

On the other hand, Platts Analytics projects China major refined products exports to be at about 1 million b/d in November and will rise to 1.1 million b/d in December due to the third round export quotas.

China's key oil products exports ('000 mt)

Source: General Administration of Customs

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