Refinery run rates rebounded to the highest level in almost two months at privately held plants in China’s Shandong province.
Processing rates at the so-called teapot plants rose to 33.3 percent of total capacity in the week ended Aug. 2, Oilchem.net said in a statement on its website today. That’s the highest since the week ended June 14, and up from 28.6 percent a week earlier, according to the Shandong-based company.
The refineries import about a third of the nation’s fuel oil as feedstock to produce gasoline and diesel. Teapot plants boosted run rates in anticipation of a fuel price hike, said Zhu Jiasheng, an analyst with commodity researcher C1 Energy.
“This is a short-term action to capture the potential gasoline and diesel price hike later this month,” Zhu said by telephone from Shanghai. The run rates may rebound to 40 percent of capacity at the end of this month as two more major plants may resume production, Zhu said.
Oilchem expects processing to remain at the same level this week, the company said today.