China Cuts Key Crude Import Quota for Private Refiners
6/22 11:13 AM
China Cuts Key Crude Import Quota for Private Refiners LOUISVILLE, Ky. (DTN) -- China's independent refining sector, which has accounted for the majority of the buildout in refinery capacity in China in recent years, operates under a crude import quota system. Starting in 2017, these refiners were largely banned from being able to directly export refined products and were forced to sell into the domestic market or to state owned refiners for export. In a continued effort to crimp down on the independent refining sector in China, regulators have cut the second batch of 2021 crude import quotas for independent refiners in the country by 35% year-on-year. The cut to import quotas follows recently imposed taxes on bitumen feedstock imports which served as a warning sign that regulators were working to reduce independent refiners' crude imports and refined fuel production. Troy Vincent, troy.vincent@dtn.com, www.dtn.com. (c) Copyright 2021 DTN, LLC. All rights reserved.