Refiners processed 58.32 million metric tons of crude oil in June, according to data from the National Bureau of Statistics (NBS), equivalent to 14.19 million barrels per day (bpd), the lowest levels so far this year.
Output for the first six months totalled 360.09 million tons, or 14.44 million bpd, a level 0.4% lower than the same period last year, the NBS data recorded, which is the first decline for year-to-date volumes since the end of 2022, according to Reuters' records of official figures.
The subdued productions reflect the broadly sluggish economic recovery and refiners' narrowing processing profits, analysts and traders have said.
While a few state-run refiners have resumed operations after planned overhauls, operational levels at smaller independent processors in the eastern refining hub of Shandong province dipped further in late June to 50.92% of their capacity, according to estimates by Chinese consultancy Oilchem.
That is the lowest since at least the start of 2023 and down from 61.08% a year earlier, Oilchem data showed. "Smaller plants are really struggling with very weak margins, as demand, especially diesel, is falling behind expectations," said a Shandong-based crude oil trading manager with an independent refiner.
During January and May, Chinese gasoline demand dropped nearly 2% year-on-year with diesel down 14%, according to commodities consultancy Sublime China Information.
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