CHINA DATA: April crude imports drop 16% to 10.4 mil b/d

China's crude imports fell 16% to 10.36 million b/d in April, dropping from a 33-month high of 12.37 million b/d in March, while oil product exports hit a nine-month low, General Administration of Customs data released May 9 showed.

However, analysts expect crude inflows to rebound strongly in May, which may even be higher than the level in March, due to a hefty stream from the US. But tightened specification testing on hazardous chemical imports conducted by customs could slow logistics and cap crude imports in the month.

The country's seaborne crude imports were estimated to hit 11.4 million b/d in May, higher than the 11.08 million b/d seen in March, with US crude inflows likely to increase by 284,000 b/d during the month, according to data intelligence Kpler. China imports crude oil via both sea and pipeline.

In April, crude imports totaled 43.41 million mt on a metric ton basis, down 19% month on month. GAC releases data in metric tons that S&P Global Commodity Insights converts to barrels using a 7.33 conversion factor.

The volume was also down 1.4% from April 2022, marking the first year-on-year decrease since February.

Both state-owned and independent refineries cut their crude imports in April as an adjustment from the high level in March.

S&P Global Commodity Insights data showed that independent refineries' crude imports fell 15% month on month to 3.43 million b/d in April, while the rest reduction was likely from the state-owned sector.

Over January-April, China imported 178.77 million mt (10.92 million b/d) of crude, up 4.6% year on year, amid a domestic demand recovery.

Product exports hit 9-month low

Meanwhile, China's exports of oil products fell sharply by 31% month on month to a nine-month low of 3.75 million mt in April, and also declined 2% year on year despite a low base in April 2022, due to poor export margins and limited export quota availability.

Market sources estimated the country's total gasoline, gasoil and jet fuel exports at 2.3 million-2.5 million mt, down from the 3.32 million mt seen in March.

A new round of export quota allocations, at about 12 million mt for clean oil product and fuel oil, has been expected as only 6.11 million mt of allowances are available for April onward.

Clean oil product exports are likely to recover to about 2.8 million mt amid high throughput due to less maintenance and a crude import rebound, but the volume remains capped by quotas and narrow export margins, market sources said.

Oil product imports, however, surged 196% year on year and gained 13% from March to 4.38 million mt in April, shifting China to being a net product importer in the month, the GAC data showed.

Independent refineries were the main contributor of the import increase, which brought in 1.59 million mt in April. The volume jumped 30% from March and surged 1,107% year on year, S&P Global data showed.

These refineries has been boosting fuel oil imports in recent months to compensate their shortage in crude import quota amid healthy refining margin, S&P Global reported.

Over January-April, China's oil product exports rose 44% year on year to 21.9 million mt, with net exports rising 17% to 8.31 million mt.

GAC's oil product import and export data covers a basket of oil products, with gasoline, gasoil, jet fuel and fuel oil accounting for the majority. A breakdown by product will be released May 20.

China's oil trade data (mil mt)

Source: General Administration of Customs