China’s Teapot Refineries Cut Operations to Their Lowest Level Since 2017

AI Summary

China's independent 'teapot' refineries have reduced their operations to the lowest levels since 2017 due to high feedstock prices, weak domestic fuel demand, and export restrictions impacting their profit margins. Shandong province refiners' utilization rates have slumped to about 50.5%, marking a significant decline amid economic challenges.

The independent refiners in China, the so-called teapots, have slashed their refinery run rates to the lowest level since 2017, as high feedstock prices, weak domestic fuel consumption, and restricted exports have hit margins. Refinery runs at the refiners in the Shandong province slumped to just 50.5% last week, per data from consultancy JLC cited by Bloomberg. These run rates are even lower than in 2020, when the pandemic hit China’s fuel consumption. The current utilization rates are at the lowest level since August 2017, when the independent…