(Bloomberg) -- Gasoline exports from China fell to the lowest since April due to a plunge in margins and quota that is fast running out.
Cargoes of the fuel fell to 770,000 tons last month, according to customs data on Wednesday. That’s 44% lower than in August last year. Diesel exports came in at 880,000 tons, which was the most since May but lower on a year-on-year basis.
Refiners in China — Asia’s swing exporter of petroleum products — have been grappling with a slowdown in growth, as well as the gradual decarbonization of the country’s transport fleet. The overall pace of oil-product exports is managed by the authorities with a quota system.
The margin on gasoline exports was -111 yuan (-$16) a ton in August compared with a profit of more than 240 yuan in July, according to data from Mysteel OilChem. Across the region, profits from producing gasoline from crude — shown via so-called crack spreads — fell almost 58% in August.
As of the end of August, Chinese state refiners and fuel sellers had used up about 80% of their current export quota for the year, according to Bloomberg calculations. An additional batch of quota may be released as soon as this week, according to market participants, who declined to be identified.
©2024 Bloomberg L.P.
