China Eases Rare‑Earth Export Rules After US‑China Trade Truce

In late October 2025, President Donald Trump and President Xi Jinping announced a trade truce that has, so far, appeared to hold. The agreement was a response to escalating tensions over rare‑earth exports that had disrupted supply chains for electric vehicles, robotics, and defense equipment. The truce has already begun to influence the flow of critical minerals between China and Western markets.

Earlier this month, Beijing started approving a new category of rare‑earth export licenses known as *general licenses*. These permits are valid for up to a year and allow pre‑approved buyers to ship rare‑earths repeatedly without the extensive paperwork that characterized the previous system. The shift from a highly bureaucratic process introduced in April to a more streamlined approach is intended to reduce administrative burdens and accelerate deliveries.

**Approval rate**: Since the April changes, China has granted roughly 70% of license applications, compared with about 50% before the reforms.

**Scope**: General licenses cover a wide range of rare‑earth elements used in advanced technologies.

**Validity**: Licenses remain in force for a year, simplifying repeat shipments.

EU trade chief Maros Sefcovic told Bloomberg TV that industry chatter suggests China is issuing these general licenses. He explained that the EU is actively seeking such permits to enable pre‑approved buyers to make repeated shipments, thereby cutting down on paperwork and delays. Sefcovic noted that while initial reports are encouraging, more granular data is required to fully evaluate the new process.

> *Sefcovic said the EU’s efforts to secure general licenses are being welcomed, but a detailed assessment is still needed to understand the full impact of the reforms.*

He also highlighted that the idea of general licenses was well received by the EU, and that the Chinese side appeared receptive to arguments that the April‑initiated process was overly bureaucratic.

China’s dominance in the rare‑earth market has long been a bargaining chip in trade negotiations. By easing export restrictions, Beijing signals a willingness to cooperate with Western partners and to support the rebuilding of alternative supply chains. The move is particularly significant for industries that rely on rare‑earths for high‑tech components, including electric vehicle batteries, aircraft systems, and military hardware.

**Reduce lead times** for rare‑earth procurement.

**Lower logistical costs** by minimizing paperwork.

**Stabilize supply** for key sectors that have been vulnerable to export bottlenecks.

While the focus remains on rare‑earth licensing, other market headlines are also shaping the energy landscape. FTSE 100 oil major BP has announced a change in leadership, replacing CEO Murray Auchincloss with Woodside Energy chief Meg O’Neil, who will take the role in April 2026. The move comes amid pressure from activist investor Elliott Investment Management, which holds a £3.8 bn stake and has called for a faster strategic overhaul. BP’s decision to increase its energy‑transition spend to 30% of total expenditure since 2020 has sparked debate among shareholders concerned about the company’s environmental commitments.

These developments underscore the interconnected nature of global energy markets, where shifts in commodity policies, corporate governance, and supply‑chain logistics can have far‑reaching implications for shipping and marine fuels.

China’s decision to issue general rare‑earth export licenses marks a tangible step toward normalizing trade flows after a period of heightened tension. The reforms are likely to benefit a range of high‑tech industries and may help to mitigate some of the supply‑chain disruptions that have plagued the sector. As the world watches how these changes unfold, market participants will be closely monitoring the pace and scale of license approvals and the broader impact on global rare‑earth availability.

China approves ~70% of rare‑earth license requests, up from ~50%.

General licenses reduce paperwork and are valid for up to a year.

EU actively seeks these permits to support repeat shipments.

The policy shift is part of a broader effort to stabilize critical mineral supply chains.

BP’s leadership change reflects wider industry dynamics around energy transition and shareholder pressure.

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.

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

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 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**.

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.

Island Oil Appoints Senior Trader for Denmark Operations

Marine fuels company Island Oil confirmed the appointment of Christian Larsen as senior trader for its Danish business. The news was posted on the company’s LinkedIn page on Friday, marking the beginning of Larsen’s tenure at Island Oil this month.

Larsen has a substantial track record in the bunkering sector. He was employed by Oilmar from January 2022 until October 2025, during which he served as Country Manager for the Denmark desk. Prior to that, he spent four years at Monjasa (2017‑2021) working as a bunker trader.

**Oilmar** – Country Manager, Denmark desk (Jan 2022 – Oct 2025)

**Monjasa** – Bunker trader (2017 – 2021)

These positions have provided Larsen with deep insight into the Danish market and a robust understanding of fuel logistics.

Island Oil’s Position in the Danish Market

Island Oil operates as a marine fuels provider with a focus on delivering high‑quality bunker solutions. By adding Larsen to its Danish team, the company reinforces its commitment to maintaining safe, efficient, and reliable fuel services for vessels operating in the region.

In his own words, Larsen expressed excitement about joining Island Oil. He highlighted his eagerness to grow alongside the team, learning, building, and collaborating to achieve shared success while tackling new challenges and opportunities.

The appointment signals Island Oil’s ongoing strategy to strengthen its presence in key European markets. With Larsen’s expertise, the firm is positioned to enhance its trading capabilities and continue offering dependable fuel solutions to the shipping industry.

Hakim Trading Blog

Island Oil Appoints Senior Trader for Denmark Operations

Island Oil Appoints Senior Trader for Denmark Operations

Appointment Announcement

Christian Larsen’s Background

Previous Roles

Island Oil’s Position in the Danish Market

Looking Ahead

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China Eases Rare‑Earth Export Rules After US‑China Trade Truce

Chinese Refiners Boost Throughput Amid Seasonal Maintenance