China's daily VLSFO output fell in July – JLC

Chinese refiners produced about 42,516 mt VLSFO daily in July, noting a slight month-on-month decline of 1.3%, market intelligence provider JLC reported.

PHOTO: City bridge in Zhoushan, Zhejiang Province, China. Getty Images

VLSFO production was lower on the month as some refiners faced "worse margins for production and export," JLC reported.

The country’s daily average VLSFO output in July declined by about 2.4% compared to the same period last year, JLC said.

Besides, lower VLSFO production from refineries can be attributed to reduced bunkering demand for the grade in the Chinese port of Zhoushan, a source said. Most suppliers in Zhoushan recommend lead times of 3-6 days, the source said.

Notably, Chinese refiners produced about 1.32 million mt of VLSFO in July, slightly up from 1.29 million mt in June due to one more day in July than in May.

Sinopec and PetroChina's daily VLSFO production stood at 19,354 mt and 20,258 mt in July, respectively, JLC reported. CNOOC's daily VLSFO output plunged to 2,903 mt in July, down by 21% from the previous month.

By Aparupa Mazumder

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