C1 Energy (Shanghai) – Mar 9, 2010 －－－Chinese refineries could get more earnings by exporting gasoline than selling the product in domestic market on higher Singapore gasoline prices against steady domestic prices, C1's survey found.
In Singapore market, FOB price of 92-Ron gasoline, which has similar specifications with 93-Ron gasoline in China, was US$87.96/bbl on average in Mar 2-8, down from the average of US$80.25/bbl in Feb 8-12. Chinese refineries could thus reap about Yuan 5,090/mt of earnings by exporting 93-Ron gasoline to Singapore under processing trade when excluding freight rates. However, the refineries could get only Yuan 4,954/mt, about Yuan 136/mt lower, by selling such resources in domestic market if calculated by Yuan 7,420/mt of ex-refinery price from Sinopec Guangzhou Petrochemical, with Yuan 1,388/mt of consumption tax and 17% of value-added tax exclusive. Export earnings were Yuan 320/mt lower than domestic sales two weeks ago.
If calculated by the US$87.96/mt of gasoline price in Singapore, import cost of the fuel was Yuan 8,168/mt, with freight rates and taxes inclusive, Yuan 1,330/mt higher than wholesale prices of 93-Ron gasoline in South China.
China is estimated to record stable gasoline exports of 500,000mt in March, due to persistently high yield of domestic refineries and hefty gasoline stocks of major refineries in Northeast China, industry sources predicted.
