China's June oil imports ease to five-month low
(Reuters) China's June oil imports fell to the lowest on a daily basis since February but robust buying by independent "teapot" refiners and stockpiling boosted imports over the first half of the year by 14.2% from the same period a year ago.
China imported 30.62 M tons of crude oil in June, or about 7.45 MMbpd, up 3.8% on year, data from the General Administration of Customs showed on Wednesday, easing from May's 7.59 MMbpd.
June imports dropped as a 22% rise in oil prices in April weighed on purchases from independent refiners that have driven China's imports in the first two quarters of this year. Refiners typically purchase supply two months ahead of loading and arrival.
The slowdown in imports also reflected heavy maintenance activities at both state-owned and independentrefining facilities, known as teapots because of their relatively smaller size, during the month. Thomson Reuters Supply Chain & Commodities Research estimated about 700 Mbpd to 800 Mbpd of capacity were shut down in June.
For the first half of this year, China imported 186.53 million tons of crude oil, or 7.48 MMbpd, up 14.2% or equivalent to 930 Mbpd.
The June volume is also lower than Thomson Reuters Research's' final import estimate of 31.82 M tons.
Near term, traders expect demand from the independents, which made up over half the incremental oil purchases in the first six months of 2016, to ease due to high crude inventories and swelling domestic fuel productions.
"Looking forward, teapot's margins will come under pressure," said a Beijing-based crude oil trading manager with a state refiner.
Top refiner Sinopec said last week that it aimed for a flat or small decrease in refinery throughput this year versus 2015.
China's crude oil exports were 140,000 tons in June, up from zero in May.
Oil product imports in June fell 28.4% on year to 2.22 M tons.
Exports, however, jumped 37.9% to 4.22 M tons, the second-highest on record, the data showed, as mounting fuel productions from the teapot refiners added to swelling domestic supplies.
Reporting by Meng Meng and Aizhu Chen; Editing by Christian Schmollinger
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