China's fuel oil imports from Russia surged in November to its highest level in nearly one-and-a-half years, as independent refineries in East China mopped up cargoes to replenish depleted inventories, figures released last week by the Chinese General Administration of Customs showed.
Last month, China imported 635,086 mt of fuel oil from Russia, which was 114.7% higher year on year, and 97.6% more than imports in October.
November's imports were the highest since the country imported 699,595 mt of fuel oil from Russia in June 2010.
Imports rebounded strongly in November after they dipped in October to the lowest level since November 2010.
Industry participants had expected private refineries to buy large quantities of Russian straight-run fuel oil, or M100, to replenish fast depleting inventories.
"[Independent refineries'] average run rate has been high as more refining units have resumed [operations]," a Shandong-based refiner said earlier.
China's 60-plus private refineries have a total refining capacity of over 80 million mt/year (1.61 million b/d), accounting for around 18% of the country's total crude throughput.
Yet these refineries often cannot obtain enough crude oil from Sinopec and PetroChina, the country's top two oil refiners authorized by the government to import crude and reallocate to private refiners.
The refiners often have to import straight-run fuel oil, mainly M100 from Russia, to produce gasoline and diesel.
In November, the private refineries boosted operations as they anticipated local retail prices for gasoline and diesel were due for a hike, following a sustained period of rising global crude prices.
Fears of Russian fuel oil prices climbing further, amid tight supply of spot cargoes prompted them to buy more during the month, traders said.
