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.




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