Rise of Chinese Refiners Spells Doom for South Korea and Japan

Australia reports data in megalitres and converting this to barrels per day using the BP conversion factors shows that China exported about 54,000 bpd of refined products in June, the latest month for which statistics are available.

This was almost 50 percent higher than the average 37,800 bpd Australia imported from China in the year ended June 30.

As China’s exports to Australia have risen, other countries have seen theirs decline.

South Korea’s total product exports to Australia were about 135,800 bpd in June, down from an average of 167,800 bpd in 2015-16, while Singapore’s dropped to 86,795 bpd from 135,700 bpd and Japan’s from 121,700 bpd to 86,000 bpd.

Looking specifically at diesel, the main product that Australia imports given its reliance on the fuel for powering the country’s mining industry, and a similar pattern emerges.

Australia bought 37,608 bpd of diesel from China in June alone, versus an average 10,511 bpd for the year to June 30.

Shipments from South Korea to Australia dropped to 46,963 bpd in June from the 2015-16 average of 71,496 bpd, Singapore declined to 52,731 bpd from 80,444 bpd and Japan to 64,707 bpd from 68,000 bpd.

While Australia’s three traditional suppliers of refined products all appear to be losing market share, it’s not just China that is gaining.

via Reuters

image oil tank at night