China’s daily crude throughput declined to 13.9 million barrels per day (mb/d) in July, the lowest since May 2020, Reuters reported.
This comes as the independent plants in China, also known as teapots, cut production in the middle of high inventories, tighter quotas, and weakening profits.
July’s declining production recorded 0.9% lower than the country’s output in the same month of 2020.
Accordingly, China witnessed in July 2021 the first year-on-year (YoY) decline since March 2020, when the Coronavirus affected output.
China’s total crude throughput during the period from January to July 2021 reached 412.41 million ton, an 8.9% increase compared to production a year earlier.
“Independent plants were facing tighter feedstock supplies and weakening margins. Some took to overhauls, other cut processing,” Zhou Mi, analyst at Chinese commodities consultancy JLC, stated.