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China issues first export quotas of 18.99 million tons refined oil for Jan, up 46% year-on-year

minutes 2023/01/07 10:04:31

Jan 07, 2023 (China Knowledge) - The first batch of China's refined oil export quotas for 2023 were issued recently, totaling 18.99 million tons, marking a year-on-year (YoY) increase of 46%.

In the fourth quarter of last year, the fifth or last issue of refined oil export quotas given resulted in a substantial increase in exports at the end of 2022. While alleviating the pressure on domestic supply and demand, it also increased foreign exports. On the other hand, with the year-on-year increase in the first issue of quotas this year, it is expected to help Chinese oil companies to be better adjusted to the domestic trade situation in China and increase companies’ operating profits. The increase in quotas will have a short-term positive impact on the demand for refined-oil tankers in the region.

As the Lunar New Year approaches, China’s epidemic should have peaked and will see infections dwindling dramatically. Commuters are expected to increase exponentially comparing to last three years.

As the only private refinery and chemical enterprise in China that could export refined oil, Zhejiang Petroleum & Chemical (ZPC), a subsidiary of Rongsheng Petrochemical (002493) is seeking to boost its global competitiveness. It is understood that the first batch of general trade export quota for ZPC in 2023 hits 1.67 mln tons of refined oil and 40,000 tons of low-sulfur marine fuel oil. This should grant the company more flexibility in supplying wider range of products for both domestic and international customers which will garner higher profit margins.

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