China Issues New Crude Import Quotas for 2017

China recently issued a second batch of crude oil import quotas under the “non-state trade” operating mode. A total of 22.92 million tons was allocated across 32 companies, equivalent to 33% of the 68.81 million tons approved in the first batch. The latest quotas increased the total issued so far in 2017 to 91.73 million tons, far exceeding the 87.6 million tons allowed last year. Volumes for 19 refineries (ChemChina excluded) amounted to 15.77 million tons, taking 68.8% of the new quotas.
Quotas allocated to Sinochem Hongrun Petrochemical Co., Ltd. and Dongying Qirun Chemical Co., Ltd. are each less than 100 000 tons. Refineries getting quotas below 200 000 tons include Shandong Kenli Petrochemical Group, Shandong Lijin Petrochemical Co., Ltd., Baota Petrochemical Group and Shandong Shouguang Luqing Petrochemical Co., Ltd.
The ratio of year to date (YTD) allotments to quota ceiling exceeds 90% continually in high-efficiency refineries, while it remains below 50% in those underusing their quotas, like Baota Petrochemical Group, Shandong Chambroad Petrochemicals Co., Ltd. and Shandong Haiyou Petrochemical Group Co., Ltd.