China’s VLSFO output continues to fall in May - JLC

Chinese refiners produced about 955,000 mt of VLSFO in May, about 28% lower than the same time last year, according to market intelligence provider JLC.

IMAGE: A forklift truck carrying barrels with Chinese flag on it. Getty Images

The country’s daily average VLSFO output in May fell by approximately 11.4% month-on-month to 36,806 mt. 

JLC attributed the decline to “more refinery turnarounds and bad production margins.”

China National Offshore Oil Corporation (CNOOC) lowered its VLSFO production too, driven by a drop in output at its subsidiaries: Zhoushan Petrochemical, Zhongjie Petrochemical and Taizhou Petrochemical.

Sinopec’s VLSFO output declined moderately after two refining units slashed output.

PetroChina’s VLSFO output remained relatively stable in May, after adjusting the refineries’ total VLSFO yields.

ZPC and Sinochem did not produce any VLSFO in May, but the latter exported 25,000 mt of MGO.

By Aparupa Mazumder

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