Singapore — China's social distributor stocks of gasoline and gasoil at the end of August were about 450,861 mt, down 32.8% from 670,658 mt a month earlier, according to S&P Global Platts calculations based on data provided by JLC, a Chinese information provider.
This was the second month-on-month fall in stocks after four consecutive rises since March, implying a gradual recovery in domestic demand, market sources said.
Social distributor gasoline stocks were estimated at 220,291 mt at the end of August, accounting for around 17.3% of total storage capacity of about 1.72 million cu m, and down 27.4% from the end of July, Platts calculations showed.
Social distributor gasoil stocks were estimated at 367,341 mt at the end of July, accounting for around 24.4% of the total storage capacity of 1.78 million cu m, and down 5.9% month on month, according to Platts calculations.
China raised its guidance retail prices for both gasoline and gasoil by Yuan 70/mt ($10.27/mt) starting from August 6, which was estimated to have encouraged buying of the two grades by end-users, market sources said.
In addition, gasoil demand started picking up in August as outdoor projects and transportation have gradually returned to normal due to better weather.
The start of harvesting and the end of fishing ban period in mid-August have also stimulated demand for gasoil last month, according to market sources.
The data provided by JLC covers 64 distributors with oil storage capacity of 3.51 million cu m in 21 provinces -- 1.72 million cu m for gasoline and 1.78 million cu m for gasoil.
Social distributor stocks are defined by JLC as inventory at distributors' storage facilities, excluding stocks held at refineries as well as those held by refineries at distributors' storage facilities.
