China Oil, Gas and Chemical Sector: Weekly Tracker — Crude Inventories Continued to Decline; Major Chemicals Inventory Also Fell
Report Coverage
- Broker
- UBS
- Region
- China
- Sector
- Basic Chemicals, Fossil Energy
- Report Type
- Industry Report
- Primary Focus
- Weekly tracking of China crude oil inventories, refinery utilization and major chemicals supply-demand
Report Summary
China crude inventories trended down to 1,297 MMbbl from a peak of 1,345 MMbbl at end-April, mainly driven by refinery inventory drawdowns. SOE refinery utilization rose slightly to 67.78% while teapot refineries edged down to 51.1%. Major chemicals inventories including PP, PE, and TiO2 fell week-on-week, with PP inventory down 6.1% WoW and 26.6% YoY.
Key Takeaways
- China crude inventories declined to 1,297 MMbbl from 1,345 MMbbl peak, driven by refinery inventory drawdown from 319 to 299 MMbbl
- SOE refinery utilization rose 0.18ppt WoW to 67.78%; teapot refinery utilization fell 0.2ppt to 51.1%
- MTO route utilization dropped 6ppt WoW to 83%, while naphtha-based ethylene remained flat at 78%
- PP inventory fell 6.1% WoW and 26.6% YoY; PE inventory declined 2.9% WoW and 18.0% YoY; TiO2 inventory dropped 16.9% WoW
- UBS reiterates Buy ratings on Wanhua, Satellite Chemical, Baofeng, NHU, Asia Potash, Yangnong and Jereh
Why This Report Matters
Declining crude and chemicals inventories signal tightening supply conditions in China's oil and chemical sectors, potentially supportive of margins and pricing power for integrated chemical players.
Topics Covered
Companies Mentioned
Who this summary is for
This summary is for users researching the UBS China Oil, Gas and Chemical Sector report. It helps users review China Oil, Gas and Chemical Sector: Weekly Tracker — Crude Inventories Continued to Decline; Major Chemicals Inventory Also Fell coverage, key takeaways, and related broker or sector research paths across China crude oil inventory trends, refinery utilization rate tracking, petrochemical capacity utilization dynamics; Wanhua Chemical, Satellite Chemical.
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