According to Chief Financial Officer Shou Donghua, Sinopec, the largest refiner in the world by capacity, increased its refining profits in the first quarter by 17.5% year over year to $8.70 per barrel. With that increment, compared to the first three months of 2023, Sinopec Corp forecasts that China's demand for diesel and gasoline would increase in the second quarter.
Vice President Huang Wensheng informed the media and investors that China's apparent refined gasoline consumption had increased 6.7% year over year in the first quarter as the country's economy was rebounding after Beijing removed COVID regulations.
As per Reuters reports, Sinopec's first-quarter net income fell by 12% year over year as a result of lower global oil prices, according to company executives who spoke at the earnings briefing. However, improving refined margins, more gasoline sales, and higher natural gas prices helped to counterbalance this trend.
While domestic refined sales increased by 8.5% over the same period, Sinopec also profited from a lucrative export market, increasing fuel shipments by 112% year over year, according to Chief Financial Officer Shou. As Sinopec increased gasoline purchases from independent refiners by roughly 30%, Shou added, the company's domestic fuel sales increased in contrast to a 3% fall in its crude runs.
Due to western sanctions, China's independent refiners, often known as "teapots," have benefited in recent years from inexpensive crude oil from Iran, Venezuela, and more lately, Russia, oil dealers and analysts said.
Privately owned Jiangsu Shenghong Petrochemical and PetroChina's Guangdong Petrochemical, two recently opened refinery complexes, have added to the booming supplies of petrochemicals coming from mega-private refiner Zhejiang Petrochemical Corp and Hengli Petrochemical that began just a few years ago.
Vice President Huang stated without going into further detail that Sinopec, which also generates chemicals from coal and accounts for 10% of its chemicals sector, is moving forward with plans to invest in coal mines in Inner Mongolia, northern China.
References:
Chen AIzhu. 2023. Reuters: Sinopec sees China's fuel demand recovery gaining momentum. Retrieved from https://www.reuters.com/business/energy/sinopec-sees-chinas-q2-refined-fuel-demand-recovering-more-than-q1-2023-04-28/
Photo by freepik via https://www.freepik.com/Sinopec Expects China's Fuel Demand Recovery to Pick Up Steam
According to Chief Financial Officer Shou Donghua, Sinopec, the largest refiner in the world by capacity, increased its refining profits in the first quarter by 17.5% year over year to $8.70 per barrel. With that increment, compared to the first three months of 2023, Sinopec Corp forecasts that China's demand for diesel and gasoline would increase in the second quarter.
Vice President Huang Wensheng informed the media and investors that China's apparent refined gasoline consumption had increased 6.7% year over year in the first quarter as the country's economy was rebounding after Beijing removed COVID regulations.
As per Reuters reports, Sinopec's first-quarter net income fell by 12% year over year as a result of lower global oil prices, according to company executives who spoke at the earnings briefing. However, improving refined margins, more gasoline sales, and higher natural gas prices helped to counterbalance this trend.
While domestic refined sales increased by 8.5% over the same period, Sinopec also profited from a lucrative export market, increasing fuel shipments by 112% year over year, according to Chief Financial Officer Shou. As Sinopec increased gasoline purchases from independent refiners by roughly 30%, Shou added, the company's domestic fuel sales increased in contrast to a 3% fall in its crude runs.
Due to western sanctions, China's independent refiners, often known as "teapots," have benefited in recent years from inexpensive crude oil from Iran, Venezuela, and more lately, Russia, oil dealers and analysts said.
Privately owned Jiangsu Shenghong Petrochemical and PetroChina's Guangdong Petrochemical, two recently opened refinery complexes, have added to the booming supplies of petrochemicals coming from mega-private refiner Zhejiang Petrochemical Corp and Hengli Petrochemical that began just a few years ago.
Vice President Huang stated without going into further detail that Sinopec, which also generates chemicals from coal and accounts for 10% of its chemicals sector, is moving forward with plans to invest in coal mines in Inner Mongolia, northern China.
References:
Chen AIzhu. 2023. Reuters: Sinopec sees China's fuel demand recovery gaining momentum. Retrieved from https://www.reuters.com/business/energy/sinopec-sees-chinas-q2-refined-fuel-demand-recovering-more-than-q1-2023-04-28/
Photo by freepik via https://www.freepik.com/Related Insights
European Pharma Chemical Producers Face the Same Pricing-vs-Demand Question as Petrochemicals
European pharmaceutical ingredient producers are expected to report Q2 results shaped by temporary conflict-driven pricing
Gulf Refineries Lag Behind Crude Recovery: Export Restart Delays
Despite a steady rise in crude output, Gulf refineries are still catching up, creating a mismatch between supply and demand for refined products. This article explores the causes, the effects on petrochemical feedstocks, and how export logistics are being reshaped by the slowdown.
UAN Demand Surges in Europe as Subsidy Rules Shift Buyers Away from NPK
Europe’s fertilizer market is witnessing a sharp rise in UAN fertilizer demand as new subsidy policies redirect growers from traditional NPK blends. This shift is reshaping procurement strategies and regional supply chains, with significant implications for agricultural chemicals. The article explores the drivers, impacts, and future outlook for UAN in the continent.
TiO2 Market: China Oversupply Meets European Tightness — Brent Below $80 Shifts the Import Economics
The global titanium dioxide (TiO2) market remains divided between Chinese oversupply and European supply constraints. As Brent crude falls below $80 per barrel and freight costs ease, Chinese TiO2 exports are becoming increasingly competitive in Europe, reshaping procurement decisions for coatings, plastics, and pigment buyers.
Naphtha Market Outlook as Japan Cracker Recovery Creates Q3 Margin Opportunity
Japan’s steam cracker recovery and improved feedstock conditions are creating a potential margin recovery window for Asian petrochemical producers. This analysis examines naphtha supply, cracker economics and procurement implications for Q3 2026.
Polypropylene Market Tightens as Asian PDH Units Increase LPG Demand and Propylene Supply Shrinks
The polypropylene market is entering a new phase of supply pressure as Asian PDH units increase LPG consumption while propylene availability tightens. Rising PP resin prices in China and uncertainty around Indian import policies are creating fresh challenges for buyers across the region.
Don't miss out on our updates! Subscribe to our newsletter now
We're committed to your privacy. Tradeasia uses the information you provide to us to contact you about our relevant content, products, and services. For more information, check out our privacy policy.
