China resumes clean oil product exports after holiday halt; Oct volumes seen lower on month

China is moving ahead with clean oil product exports in October after state-owned refiners resumed export activities following a brief suspension over the Oct. 1-7 National Day holiday, although volumes are expected to fall from September levels, at least four domestic refinery sources told Platts, part of S&P Global Energy, Oct. 9.

"Exports were allowed to resume late yesterday after a brief halt," a refinery source in South China said Oct. 9. The source previously told Platts Oct. 8 that no new export deals were permitted to be signed on the first working day after the holiday.

"There is no longer any restriction on export destinations," the refinery source added.

Chinese refiners had largely suspended clean products exports to overseas markets ahead of and during the National Day Golden Week holiday, Platts reported earlier.

A separate refinery source in South China said a cargo bound for Vietnam was loaded during the holiday period, and export procedures could now proceed as normal.

"There have been constant changes regarding clean products exports," a Sinopec refinery source in East China said, while confirming that exports had resumed. The source added that the company's final approval for October export volumes had not yet been received.

A refinery source in North China said part of its refinery's export program had been reinstated.

"Jet fuel cargoes that had been canceled have recovered to around three cargoes as originally planned, but it is still unclear whether the canceled gasoline cargoes will be allowed to resume," the source said.

According to the source, one MR-sized gasoline cargo and two MR-sized jet fuel cargoes scheduled for October exports were earlier canceled Oct. 8, Platts reported earlier.

Oct exports expected to decline

Multiple analysts based in the country estimated China's clean oil product exports at a minimum of 3.5 million metric tons in October, with jet fuel accounting for about 60% of the total volume.

They estimated October exports at around 2.1 million mt of jet fuel, 900,000 mt of gasoil, and 500,000 mt of gasoline.

The projected volume would be lower than September's estimated 4.36 million mt of clean products exports. China's customs data showed clean oil product exports totaled 4.58 million mt in August.

The anticipated month-over-month decline reflects lingering uncertainty over export approvals despite the resumption of export activity following the holiday period.