Sinochem shuts Shandong refineries 'indefinitely' on poor margins, trade sources say
Adds details, comment
By Chen Aizhu
SINGAPORE, July 19 (Reuters) -State-run Sinochem Group has shut in two of its three east China oil refineries for an indefinite period of maintenance, as high crude oil costs and weak fuel demand hurt margins, according to trading sources and local consultancies.
The closures, roughly 2% of China's national output, highlight a tough business climate for the country's smaller oil processors this year as demand in the world's second-largest consumer stumbles in a sluggish economy that is dampening its demand for crude oil.
Sinochem closed its Zhenghe and Changyi refineries in May and June, respectively, for indefinite overhaul periods because of poor margins, said the sources.
The shutdown at the 100,000 barrels per day (bpd) crude unit at Zhenghe started in early May, while Changyi's 160,000-bpd plant was switched off around June 25, according to two trading sources and Shandong-based consultancy Oilchem.
"There is no timeline for production resumption, for now," said one trading source with direct knowledge of the matter.
"The more they process, the bigger loss they would likely incur," said a second Beijing-based source familiar with Sinochem's refinery operations.
Sinochem declined to comment.
Utilisation at independent refineries in the processing hub of Shandong province, a bellwether for Chinese oil demand, fell to 50.08% this week, according to Chinese consultancy Oilchem, among the lowest in the past four years.
Sinochem's Shandong plants also face higher crude oil costs than their independent peers, known as "teapots," which rely on crude from Russia, Iran and Venezuela that is priced at deep discounts due to Western sanctions, saving Chinese refiners billions of dollars.
Sinochem, like China's national oil majors, has shied away from buying oil from those three countries, senior trading sources familiar with Sinochem's thinking have said.
Sinochem operates a third refinery in Shandong, the 120,000-bpd Huaxing plant, as well as a refinery complex in the southeastern coastal province of Fujian.
Reflecting weak Chinese demand, crude oil imports into the world's top buyer posted a rare 2.3% annual decline during the first half of this year, weighed down by lackluster demand for fuel, especially diesel.
Reporting by Chen Aizhu and Florence Tan; Editing by Christian Schmollinger and Mark Potter
Eng oxirgi yangiliklar
Javobgarlikdan voz kechish: XM Group korxonalari har biri faqat ijro xizmatlarini koʻrsatadi va onlayn savdo platformamizdan foydalanish huquqini beradi, bu odamga veb-saytda yoki veb-sayt orqali mavjud boʻlgan kontentni koʻrish va/yoki undan foydalanishga ruxsat beradi hamda uni oʻzgartirishga moʻljallanmagan va uni oʻzgartirmaydi yoki kengaytirmaydi. Bunday kirish va foydalanish huquqi doimo quyidagilarga boʻysunadi: (i) Shartlar va qoidalar; (ii) Risklar haqida ogohlantirish; va (iii) Javobgarlikni toʻliq rad etish. Shuning uchun bunday kontent umumiy maʼlumot sifatida taqdim etiladi. Xususan, shuni esda tutingki, bizning onlayn savdo platformamiz mazmuni moliyaviy bozorlarda biror bitimni amalga oshirishga oid maslahat yoki taklif emas. Har qanday moliyaviy bozorda savdo qilish sizning kapitalingiz uchun jiddiy risk darajasini oʻz ichiga oladi.
Onlayn savdo platformamizda chop etilgan barcha materiallar faqat taʼlim/axborot maqsadlari uchun moʻljallangan va unda moliyaviy, investitsiya soligʻi yoki savdo maslahatlari va tavsiyalar; yoki bizning savdo narxlarimizning qaydlari; yoki har qanday moliyaviy vositalar bilan bitim tuzish maslahati yoki taklifi; yoki sizga kerak boʻlmagan moliyaviy reklama aksiyalari hisoblanmaydi
Har qanday uchinchi tomon kontenti, shuningdek XM tomonidan tayyorlangan kontent, masalan: fikrlar, yangiliklar, tadqiqotlar, tahlillar, narxlar va boshqa maʼlumotlar yoki bu veb-saytda joylashgan uchinchi tomon saytlariga havolalar umumiy bozor sharhi sifatida "boricha" taqdim etiladi va investitsiya maslahatini tashkil etmaydi. Har qanday kontent investitsiya tadqiqoti sifatida talqin qilinsa, siz bunday kontentni investitsiya tadqiqotlarining mustaqilligini ragʻbatlantirish uchun moʻljallangan qonun talablariga muvofiq moʻljallanmagan va tayyorlanmaganligini eʼtiborga olishingiz va qabul qilishingiz kerak, shuning uchun unga tegishli qonunlar va qoidalarga muvofiq marketing kommunikatsiyasi sifatida qaraladi. Mustaqil boʻlmagan investitsiya tadqiqoti va yuqoridagi maʼlumotlarga oid risk haqida ogohlantirishimizni oʻqib chiqqaningizga va tushunganingizga ishonch hosil qiling, unga bu yerdan kirish mumkin.
