The independent refineries in Shandong Province reported persistently low CDU capacity utilization rates entering 2024 primarily due to poor refining profits, except for early 2024 when the refineries lifted the production following the ease of feedstock supply crunch amidst the release of 2024 crude oil import quotas to the full amount, per OilChem survey.
OilChem data showed that the average weekly CDU capacity utilization rates of independent refineries in Shandong stood at 56.99% year-to-date (YTD), down 7.8 percentage points from the same period last year, which was also the lowest over the same period in the past three years.
Source: Mysteel OilChem
The poor refining profits accounted for the downtrend in the capacity utilization rates. The comprehensive refining profits reported by independent refineries in Shandong averaged Yuan 101.16/tonne in the week ended April 4, down 41.96% from the previous week and slumping 90.03% year on year.
In this case, some refineries delayed the resumption from maintenance, or kept the capacity utilization rates at a low level. Meanwhile, the refineries were generally firm to their prices, especially when the profit margins of gasoil declined rapidly.
Nevertheless, gasoline still maintained moderate profitability on the extensive stockpiling in preparation for the holidays, including Qingming Festival and Labour day holiday.
Source: Mysteel OilChem
Written by Aggie Hu, huchenying@mysteel.com
Edited by Navy Liu, liuchuanjun@mysteel.com