{"id":138392,"date":"2024-03-15T15:15:45","date_gmt":"2024-03-15T19:45:45","guid":{"rendered":"https:\/\/inspenet.com\/noticias\/oil-refineries-in-china-reduce\/"},"modified":"2024-03-15T15:17:47","modified_gmt":"2024-03-15T19:47:47","slug":"oil-refineries-in-china-reduce","status":"publish","type":"noticias","link":"https:\/\/inspenet.com\/en\/news\/oil-refineries-in-china-reduce\/","title":{"rendered":"China’s oil refineries cut production as industrial demand slumps"},"content":{"rendered":"\n

The downturn in the construction sector has hurt the fate of oil in China<\/strong>, which has had a direct impact on the country’s independent refineries, leading them to lower their diesel production levels.<\/p>\n\n

This fuel, the main product of these refineries, popularly known as “teapots”, was in high commercial demand due to the booming real estate market.<\/p>\n\n

Low volume of oil production in China<\/h2>\n\n

A recent Bloomberg report highlights that operating rates at these Shandong refineries have experienced a historic drop, reaching their lowest point in the last two years, and overall operating rates are at their lowest in less than nearly a decade.<\/p>\n\n

According to an analyst at Mysteel OilChem<\/a><\/strong>According to a Mysteel OilChem analyst, demand for diesel has declined significantly in sectors such as mining and infrastructure,<\/strong> failing to meet previous expectations. However, the logistics sector shows a different behavior, although even there a shift towards LNG as an alternative to diesel for heavy transport can be observed.<\/p>\n\n

China’s private refineries have faced numerous challenges at the start of this year, being caught between rising costs due to \n oil imports and tight refining margins.<\/a>\n<\/strong> and squeezed refining margins. This is due to the fall in diesel prices in the domestic market, in a context of a weakening Chinese economy.<\/p>\n\n

An optimistic outlook for the Chinese market<\/h2>\n\n

The profitability of private refineries has fallen drastically<\/strong>, with margins for several fuels plummeting by 50% in the last year. This decline continued to reach an all-time low in recent statistics, detailing a contrast with the previous year, which had been exceptionally positive and stable.<\/p>\n\n

Despite the current challenges, last year the industry registered record figures in both crude oil imports and domestic production<\/strong>, demonstrating the resilience and adaptability of the sector.<\/p>\n\n

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Source: Bloomberg<\/strong><\/p>\n\n

Photo: Shutterstock<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Joshua Falcon, March 15, 2024.
\nThe recession in the construction sector, which has hurt the fate of China’s oil, has had a direct impact on the country’s independent refineries, leading them to lower their diesel production levels.<\/p>\n","protected":false},"author":8404,"featured_media":138342,"menu_order":0,"comment_status":"open","ping_status":"open","template":"","meta":{"_acf_changed":false,"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"footnotes":""},"categoria_noticias":[13026,13036],"etiqueta_noticias":[],"class_list":["post-138392","noticias","type-noticias","status-publish","has-post-thumbnail","hentry","categoria_noticias-energy","categoria_noticias-oil-and-gas"],"acf":[],"_links":{"self":[{"href":"https:\/\/inspenet.com\/en\/wp-json\/wp\/v2\/noticias\/138392","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/inspenet.com\/en\/wp-json\/wp\/v2\/noticias"}],"about":[{"href":"https:\/\/inspenet.com\/en\/wp-json\/wp\/v2\/types\/noticias"}],"author":[{"embeddable":true,"href":"https:\/\/inspenet.com\/en\/wp-json\/wp\/v2\/users\/8404"}],"replies":[{"embeddable":true,"href":"https:\/\/inspenet.com\/en\/wp-json\/wp\/v2\/comments?post=138392"}],"version-history":[{"count":0,"href":"https:\/\/inspenet.com\/en\/wp-json\/wp\/v2\/noticias\/138392\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/inspenet.com\/en\/wp-json\/wp\/v2\/media\/138342"}],"wp:attachment":[{"href":"https:\/\/inspenet.com\/en\/wp-json\/wp\/v2\/media?parent=138392"}],"wp:term":[{"taxonomy":"categoria_noticias","embeddable":true,"href":"https:\/\/inspenet.com\/en\/wp-json\/wp\/v2\/categoria_noticias?post=138392"},{"taxonomy":"etiqueta_noticias","embeddable":true,"href":"https:\/\/inspenet.com\/en\/wp-json\/wp\/v2\/etiqueta_noticias?post=138392"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}