China’s refinery output fell 3.3% in April from a year earlier, the first annual decline in 20 months, as large refiners carried out regular maintenance and small independent plants curbed production due to thin profit margins.
Refinery throughput was 58.79 million metric tons, according to data from the National Bureau of Statistics (NBS) on Friday, equivalent to 14.3 million barrels per day (bpd). This is lower than 15.09 million bpd in March and 14.45 million bpd for the January-February period.
The 3.3% fall was the first year-on-year decline since August 2022, according to Reuters’ records of NBS data. State-run refineries such as Sinopec’s Zhanjiang and Zhenhai refineries, as well as large independent refiner Dalian Hengli Petrochemical, underwent planned maintenance in April, according to Chinese commodities consultancy Oilchem.
Smaller independent processors operated at less than 55% of capacity in April, down some 10 percentage points from a year earlier, Oilchem’s data showed.
However, throughput for January to April inched up 1.1% from a year earlier to 241.26 million tons, or 14.56 million bpd, reflecting a pick up in economic activity as more people travelled and increased use of gasoline and aviation fuel.
State refining giants Sinopec and PetroChina both reported strong year-on-year fuel sales growth in the first quarter, domestically and for exports, as they cashed in on firm regional refining margins.
China’s crude oil production in April rose 1.3% from a year earlier to 17.47 million tons, or about 4.25 million bpd. Natural gas production grew 3.2% last month to 19.8 billion cubic metres.