Minor refineries in South China's Guangdong Province suffered from negative refining margins as prices of feedstock rose, C1's survey found.
The margin was minus Yuan 10/mt on average in theory Wednesday, versus Yuan 40/mt one week ago and minus Yuan 251/mt a year earlier, C1 estimated.
Ex-terminal prices of straight-run fuel oil, feedstock for the refineries, were Yuan 5,240-5,260/mt in Huangpu market Wednesday, up Yuan 50/mt on week, C1's assessment showed.
However, in the meantime, wholesale prices of higher portion of substandard gasoil stayed unchanged at Yuan 6,600-6,700/mt and high-sulfur residue stable at Yuan 4,150-4,200/mt in South China.
Most minor refineries were active in clearing stocks of substandard gasoil and high-sulfur residue as the Lunar New Year drew near, according to refinery sources.
The refineries might still be plagued by negative refining margins in the coming week, because market players would gradually quit amid approaching Chinese New Year, market sources expected.
C1 calculated oil refining margins of independent refineries mainly on the basis of C1's intraday price assessments of spot feedstock and products of these refineries, as well as average output ratio of the products. C1 also took into consideration the average processing cost of the domestic oil refining industry, transportation cost, consumption tax, value-added tax and losses, etc., while excluding the other costs like financial cost and sales tax, etc.
The margin was minus Yuan 10/mt on average in theory Wednesday, versus Yuan 40/mt one week ago and minus Yuan 251/mt a year earlier, C1 estimated.
Ex-terminal prices of straight-run fuel oil, feedstock for the refineries, were Yuan 5,240-5,260/mt in Huangpu market Wednesday, up Yuan 50/mt on week, C1's assessment showed.
However, in the meantime, wholesale prices of higher portion of substandard gasoil stayed unchanged at Yuan 6,600-6,700/mt and high-sulfur residue stable at Yuan 4,150-4,200/mt in South China.
Most minor refineries were active in clearing stocks of substandard gasoil and high-sulfur residue as the Lunar New Year drew near, according to refinery sources.
The refineries might still be plagued by negative refining margins in the coming week, because market players would gradually quit amid approaching Chinese New Year, market sources expected.
C1 calculated oil refining margins of independent refineries mainly on the basis of C1's intraday price assessments of spot feedstock and products of these refineries, as well as average output ratio of the products. C1 also took into consideration the average processing cost of the domestic oil refining industry, transportation cost, consumption tax, value-added tax and losses, etc., while excluding the other costs like financial cost and sales tax, etc.
