China’s Teapots Feast on Fuel Oil as Probe Hits Key Feedstock
- Customs checks on bitumen mixture have cut flows to refiners
- Independent refiners may need to curb operations, traders say
Photographer: Kevin Lee/Bloomberg
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China’s smaller independent refiners have ramped up fuel oil purchases to feed their plants as a customs crackdown squeezes supply of another favorite feedstock.
Customs in Shandong province, the home to most of China’s private refiners known as teapots, started conducting quality checks on bitumen mixture last month that has crimped flows into the region, according to industry consultants and traders who participate in the market. It’s unclear why there’s increased scrutiny and authorities didn’t respond to a request for comment.