Refining margins of independent refineries in Shandong Province with straight-run fuel oil as feedstock again suffered from negative refining margins due to losses in product sales revenues, a survey found.
Based on Wednesday's prices of spot M100 fuel oil in Shandong market, local refineries' refining margins averaged minus Yuan 17/mt on paper, versus Yuan 12/mt one week ago and minus Yuan 600/mt a year earlier, it is estimated.
In the past week, in Shandong market, wholesale prices of gasoline and gasoil dropped Yuan 50/mt and Yuan 75/mt, respectively; hydrogenated naphtha declined Yuan 50/mt and LPG down Yuan 35/mt; in the meantime, petcoke wholesale price climbed Yuan 50/mt and slurry held stable.
In the period, cost of feedstock straight-run fuel oil stayed unchanged at Yuan 5,375/mt in the spot market on tightening supply, some data showed.
If calculated by Wednesday's CFR price of M100 fuel oil, which was about US$560.25/mt, Shandong independent refineries would suffer from minus Yuan 116/mt of refining margin.
We 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.
Based on Wednesday's prices of spot M100 fuel oil in Shandong market, local refineries' refining margins averaged minus Yuan 17/mt on paper, versus Yuan 12/mt one week ago and minus Yuan 600/mt a year earlier, it is estimated.
In the past week, in Shandong market, wholesale prices of gasoline and gasoil dropped Yuan 50/mt and Yuan 75/mt, respectively; hydrogenated naphtha declined Yuan 50/mt and LPG down Yuan 35/mt; in the meantime, petcoke wholesale price climbed Yuan 50/mt and slurry held stable.
In the period, cost of feedstock straight-run fuel oil stayed unchanged at Yuan 5,375/mt in the spot market on tightening supply, some data showed.
If calculated by Wednesday's CFR price of M100 fuel oil, which was about US$560.25/mt, Shandong independent refineries would suffer from minus Yuan 116/mt of refining margin.
We 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.
