Gasoline shipments totaled 880,000 tonnes last month, the highest level since April, although year-to-date volumes remain 37% below the same period a year earlier, according to data. data from the General Administration of Customs of China.
Exports of diesel and aviation fuel, however, took analysts by surprise with volumes well below their forecasts.
Diesel exports increased only slightly from June to 360,000 tonnes last month, around half of forecast levels and a fraction of July 2021’s 1.39 million tonnes.
Jet fuel exports also fell, 27% from the previous year, to 480,000 tonnes, the lowest monthly volume since January 2021. Year-to-date, exports are 8.6% higher than of the previous year.
China set two batches of export quotas in June and July after companies lobbied for more permits to help alleviate overflowing stocks at home amid lengthy COVID lockdowns stifled fuel consumption.
Exports of the three fuels are expected to rebound in August to their highest level of the year so far on the back of new quotas, notably for diesel fuel, but broader government restrictions are expected to cap shipments at their lowest level since seven years for 2022.
Thursday’s data also showed that China’s imports of liquefied natural gas (LNG) in July fell 15.4% year on year to 4.74 million tonnes. Year-to-date purchases are down 20% as companies avoid high-priced spot purchases and focus on long-term supplies.
Gas imports by pipeline, mainly from Turkmenistan and Russia, increased by 8% over the year to reach 3.96 million tonnes. Imports in the first seven months rose nearly 11 percent year-on-year to 26.28 million tonnes, the data showed.
The table below shows the details of the exchanges, volumes in millions of tonnes.
Exports July y/y % change Jan-July y/y % change
Petrol 0.88 19 6.44 -37.4
Diesel 0.36 -74.2 2.42 -83.2
Jet fuel 0.48 -27.1 4.76 8.6
Import July y/y % change Jan-July y/y % change
LNG 4.74 -15.4 35.93 -20.3
Gas pipeline 3.96 8 26.28 10.8