China's Nov diesel exports down 44.9% on last year despite weak domestic demand
China's diesel exports in November were down 44.9% on last year at 1.16 MMt, data showed on Monday, as domestic demand remains above pandemic levels but faces continued headwinds from the country's property slowdown. Exports of diesel, which accounts for the biggest share of refinery output, however rose month-on-month from October's 1.11 MMt, data from the General Administration of Customs showed on Monday.
Diesel exports for the year to date are up 61% on the previous year. A weak macroeconomic backdrop and stagnant property sector, visible in contracting manufacturing PMI and Moody's recent cut to its sovereign credit rating outlook, continues to suppress domestic demand for the key fuel.
Gasoline shipments of 890,000 tons were down from October's 1.09MMt, even as domestic travel levels normalized after early October's Golden Week holiday. Gasoline exports were down 40.0% on last year's 1.49 million tons, when widespread pandemic restrictions significantly curtailed domestic travel.
Jet fuel exports stood at 1.59 MMt, up 3.9% from October and 26.9% higher than last year's 1.26 MMt. Domestic kerosene demand continues to benefit from a fully recovered domestic travel market, with domestic flight levels already above pre-COVID levels and expected to step up further. However, international airline capacity in and out of China in November this year was around 57% of the figure in the same months of 2019, before the pandemic halted international travel, according to data from aviation analytics firm OAG. Fuel provided to international flights is counted as an export in customs statistics.
Regional refining margins rose through November, standing at $6.74/bbl on Dec. 1, nearly double $3.60/bbl a month earlier. Despite this, total refined fuel exports, which includes marine bunker fuel, have fallen consistently month-on-month since August. November's figure was down 17.3% on the same period last year, customs data previously showed. China's refinery runs in November slowed on the previous month to 14.48 MMbpd, the lowest daily level since the January-February period, during which run rates averaged 14.36 MMbpd.
The data released on Monday also showed China imported 6.8 MMt of LNG in November, up 6.6% from a relative low of 6.42 MMt last year. LNG shipments rose 32% from the previous month as the country enters the winter heating season.
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