Gasoline export revenues for Chinese exporters increased as Singapore gasoline prices went up, C1's research found.
In Singapore market, FOB price of 92-Ron gasoline, which has similar specifications with 93-Ron gasoline in China, was US$117.1/bbl on average during Aug 4-17, versus the average of US$124.7/bbl two weeks ago. Chinese exporters could reap about Yuan 6,397/mt of earnings by exporting 93-Ron gasoline to Singapore under processing trade when excluding freight rates.
They could get Yuan 6,295/mt, about Yuan 102/mt lower, by selling such resources in domestic market if calculated by Yuan 8,989/mt of ex-refinery price from Sinopec Guangzhou Petrochemical, with Yuan 1,388/mt of consumption tax and 17% value-added tax deducted. Export earnings were Yuan 555/mt higher than domestic sales two weeks ago.
If calculated by the US$124.7/bbl of gasoline price in Singapore, import cost was Yuan 9,445/mt, with freight rates and taxes inclusive, Yuan 330/mt higher than wholesale prices of 93-Ron gasoline in South China. The cost was Yuan 853/mt higher than domestic sales two weeks ago.
Sinopec will not likely import gasoline in the near term because of steeply negative import margins, according to market sources. The oil giant mainly outsourced gasoline from PetroChina to meet supply gap. Sinopec Guangdong has recently purchased from PetroChina Guangxi Petrochemical a MR-sized gasoline cargo, which is originally for export, said an international trader.
