According to Chief Financial Officer Shou Donghua, Sinopec, the largest refiner in the world by capacity, increased its refining profits in the first quarter by 17.5% year over year to $8.70 per barrel. With that increment, compared to the first three months of 2023, Sinopec Corp forecasts that China's demand for diesel and gasoline would increase in the second quarter.
Vice President Huang Wensheng informed the media and investors that China's apparent refined gasoline consumption had increased 6.7% year over year in the first quarter as the country's economy was rebounding after Beijing removed COVID regulations.
As per Reuters reports, Sinopec's first-quarter net income fell by 12% year over year as a result of lower global oil prices, according to company executives who spoke at the earnings briefing. However, improving refined margins, more gasoline sales, and higher natural gas prices helped to counterbalance this trend.
While domestic refined sales increased by 8.5% over the same period, Sinopec also profited from a lucrative export market, increasing fuel shipments by 112% year over year, according to Chief Financial Officer Shou. As Sinopec increased gasoline purchases from independent refiners by roughly 30%, Shou added, the company's domestic fuel sales increased in contrast to a 3% fall in its crude runs.
Due to western sanctions, China's independent refiners, often known as "teapots," have benefited in recent years from inexpensive crude oil from Iran, Venezuela, and more lately, Russia, oil dealers and analysts said.
Privately owned Jiangsu Shenghong Petrochemical and PetroChina's Guangdong Petrochemical, two recently opened refinery complexes, have added to the booming supplies of petrochemicals coming from mega-private refiner Zhejiang Petrochemical Corp and Hengli Petrochemical that began just a few years ago.
Vice President Huang stated without going into further detail that Sinopec, which also generates chemicals from coal and accounts for 10% of its chemicals sector, is moving forward with plans to invest in coal mines in Inner Mongolia, northern China.
References:
Chen AIzhu. 2023. Reuters: Sinopec sees China's fuel demand recovery gaining momentum. Retrieved from https://www.reuters.com/business/energy/sinopec-sees-chinas-q2-refined-fuel-demand-recovering-more-than-q1-2023-04-28/
Photo by freepik via https://www.freepik.com/Sinopec Expects China's Fuel Demand Recovery to Pick Up Steam
According to Chief Financial Officer Shou Donghua, Sinopec, the largest refiner in the world by capacity, increased its refining profits in the first quarter by 17.5% year over year to $8.70 per barrel. With that increment, compared to the first three months of 2023, Sinopec Corp forecasts that China's demand for diesel and gasoline would increase in the second quarter.
Vice President Huang Wensheng informed the media and investors that China's apparent refined gasoline consumption had increased 6.7% year over year in the first quarter as the country's economy was rebounding after Beijing removed COVID regulations.
As per Reuters reports, Sinopec's first-quarter net income fell by 12% year over year as a result of lower global oil prices, according to company executives who spoke at the earnings briefing. However, improving refined margins, more gasoline sales, and higher natural gas prices helped to counterbalance this trend.
While domestic refined sales increased by 8.5% over the same period, Sinopec also profited from a lucrative export market, increasing fuel shipments by 112% year over year, according to Chief Financial Officer Shou. As Sinopec increased gasoline purchases from independent refiners by roughly 30%, Shou added, the company's domestic fuel sales increased in contrast to a 3% fall in its crude runs.
Due to western sanctions, China's independent refiners, often known as "teapots," have benefited in recent years from inexpensive crude oil from Iran, Venezuela, and more lately, Russia, oil dealers and analysts said.
Privately owned Jiangsu Shenghong Petrochemical and PetroChina's Guangdong Petrochemical, two recently opened refinery complexes, have added to the booming supplies of petrochemicals coming from mega-private refiner Zhejiang Petrochemical Corp and Hengli Petrochemical that began just a few years ago.
Vice President Huang stated without going into further detail that Sinopec, which also generates chemicals from coal and accounts for 10% of its chemicals sector, is moving forward with plans to invest in coal mines in Inner Mongolia, northern China.
References:
Chen AIzhu. 2023. Reuters: Sinopec sees China's fuel demand recovery gaining momentum. Retrieved from https://www.reuters.com/business/energy/sinopec-sees-chinas-q2-refined-fuel-demand-recovering-more-than-q1-2023-04-28/
Photo by freepik via https://www.freepik.com/Related Insights
According to IFO, The German Chemical Sector is in "Deep Crisis."
Berlin, Germany, October 6, 2018 The Ifo economic institute stated on Friday that the German chemical industry entered a deeper state of crisis in September as a result of declining order books and sluggish international demand.
09 October 2023 Tradeasia Team
China is On Track to Achieve Significant Increase in Crude Oil Imports in 2023
In 2023, analysts predict that China will import a record amount of crude oil due to rising gasoline consumption as more people travel as a result of the removal of COVID-19 regulations and the startup of new refineries. The issue is cited from Reuters in early 2023. China's crude imports may rise
13 March 2023 Tradeasia Team
Demand Shifts: Where TSP Consumption Is Growing Fastest
Textured Soy Protein demand is growing fastest globally & insights into regional markets, growth drivers, and supply chain implications.
24 April 2026 Tradeasia Team
LABSA Market 2026: Indian Surge vs Gulf Resurgence
The detergent chemical sector faces a pivotal reset as Gulf‑origin n‑paraffin supplies recover, challenging Indian LABSA producers who expanded output during H1 2026. The July price battle will test whether Gulf logistics can outpace Indian‑origin LABSA on landed cost. This article analyses the dynamics and forecasts the competitive outcome.
02 July 2026 Tradeasia Team
Morocco Country Watch: OCP's Structural Position After a Record H1 2026
Morocco enters H2 2026 with OCP firmly established as one of the world's most strategically important fertilizer suppliers. The Hormuz disruption strengthened the company's role in global procurement, transforming its Atlantic export route into a long-term competitive advantage.
02 July 2026 Tradeasia Team
Myristic Acid and Palmitic Acid: The Underappreciated Oleochemicals Driving Soap Quality
Myristic acid and palmitic acid rarely receive the attention given to stearic acid, yet they play a critical role in soap performance. As demand for bio-based ingredients rises and sustainability requirements tighten, these fatty acids are becoming increasingly important across the global oleochemical industry.
11 June 2026 Tradeasia Team
Don't miss out on our updates! Subscribe to our newsletter now
We're committed to your privacy. Tradeasia uses the information you provide to us to contact you about our relevant content, products, and services. For more information, check out our privacy policy.
