12 July 2013 11:06 [Source: ICIS news]
SINGAPORE (ICIS)--The operating rates of major Chinese refineries averaged 85.3% on 11 July, down by 1.1 percentage points from two weeks ago, according to data from C1 Energy, an ICIS service in China.
Sinopec continued cutting its crude throughput at several of its subsidiary refineries because of a bearish oil-product market, which mainly caused a decline in the overall operating rate.
Additionally, the run rate of PetroChina’s 220,000 bbl/day Fushun refinery declined by 11 percentage points to 75%, as its 980,000 tonne/year cracker was shut for maintenance.
However, the drop was partly offset by Sinopec’s Qilu and Wuhan refineries.
Qilu raised its 280,000 bbl/day refinery’s utilisation rate by three percentage points to 77%, as the quality of the crude from Shengli oilfield is almost back to normal. Wuhan posted a three-percentage-point rise in its operating rate after a 70,000 bbl/day crude distillation unit and some new secondary processing units came on line in early July.
The average refinery operating rate was compiled from 35 major Chinese refineries that have a combined capacity of 7.43m bbl/day. The combined capacity accounts for 70% of the total capacity of major refineries, according to C1 Energy.
Lower refinery operating rates tend to push up feedstock costs for China's chemical plants, which in turn may choose to reduce their own production.
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