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$124.7/bbl on average during Jul 22-Aug 3, versus the average of US$123.7/bbl two weeks ago. Chinese exporters could reap about Yuan 6,850/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 555/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 532/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 9,983/mt, with freight rates and taxes inclusive, Yuan 853/mt higher than wholesale prices of 93-Ron gasoline in South China. The cost was Yuan 866/mt higher than domestic sales two weeks ago.
