Chinese Refiners Boost Throughput Amid Seasonal Maintenance

November Throughput and Maintenance Impact

Official data released by Reuters shows that China’s refinery fleet processed **60.83 million tonnes** of crude in November, a **39% increase** over the previous month. This volume translates to an average of **14.86 million barrels per day** (bpd). The slight decline from October’s **14.94 bpd** is largely attributed to seasonal maintenance, which removed about **1.2 million bpd** of capacity from the system.

Despite the downtime, the overall throughput remained robust. Kpler senior oil analyst Muyu Xu noted that while some state‑owned plants were offline, independent refineries compensated by ramping up their runs. This shift was facilitated by the recent issuance of new crude import quotas, which provided a clear incentive for these operators to increase production.

Independent Refiners and Import Quotas

The new import quotas effectively unlocked additional crude supply for private refineries. According to Xu, “the independent plants have stepped up their runs following the issuance of new crude import quotas.” This strategy has helped maintain throughput levels close to November’s average, even as maintenance continues at larger, state‑owned facilities.

• **State‑owned refineries:** ongoing maintenance, capacity offline
• **Independent refineries:** increased runs, driven by new import quotas
• **Projected December throughput:** expected to remain largely stable at November levels

Year‑to‑Date Trends

From January through November, Chinese refiners processed **675.07 million tonnes** of crude, a **4% rise** over the same period last year. This cumulative growth counters narratives that China’s crude demand is experiencing an irreversible slowdown.

The increase reflects both higher domestic production and sustained import activity. Import volumes continue to make up **70–75%** of China’s overall consumption, underscoring the country’s heavy reliance on foreign crude.

Domestic Production and Stockpiling

Domestic output also climbed, growing **1.7%** year‑on‑year to **198.25 million tonnes**. November alone saw **17.63 million tonnes** of crude, up **2.2%** from the same month in 2024. The average daily production for 2025 has risen to **4.3 million bpd**, up from **3.8 million bpd** in 2020.

China’s strategy to build inventory has been aggressive. The nation has been stockpiling crude at a rate of roughly **1 million barrels per day** this year. Additionally, plans are underway to construct **11 new storage sites** across the country, adding a combined capacity of around **169 million barrels**.

Implications for the Marine Fuels Market

The sustained throughput and growing domestic production have several implications for marine fuels, particularly HSFO380 and other high‑sulfur bunker grades:

• **Supply stability:** The continued operation of independent refineries helps keep HSFO380 output steady, mitigating potential supply disruptions.
• **Pricing dynamics:** With China maintaining high import volumes and building storage, market pressure on bunker prices may remain subdued, especially if global crude prices stay low.
• **Demand outlook:** The 4% year‑on‑year increase in crude throughput suggests that demand for marine fuels in China is still expanding, supporting a resilient market for high‑sulfur fuels.

In summary, China’s refinery sector demonstrates resilience amid maintenance activities, buoyed by independent operators and a robust domestic production base. These factors collectively support a stable marine fuels market, with HSFO380 and related grades likely to remain in demand as China continues its aggressive stock‑piling and import strategy.