Based on ex-refinery price of 93-Ron gasoline, LPG deep processing plants equipped with aromatic units in Shandong Province could reap Yuan 675/mt of margin on average in theory Wednesday, slightly down Yuan 14/mt from one week ago, C1 estimated.
Feedstock prices declined Yuan 100/mt in the past week, when prices of aromatic type gasoline remained unchanged and that of ultraclean LPG slumped Yuan 175/mt, according to C1's assessment.
Drops in feedstock prices slowed down amid recovering demand; however, prices of ultraclean LPG declined sharply due to oversupply and weakening demand, market sources denoted.
Sales of aromatic type gasoline remained mediocre, although Sinopec restricted outsourcing of blended gasoline with quality failing to meet national standard, according to the sources.
Calculated by ex-refinery price of aromatic type gasoline, margins for the plants average Yuan 502/mt Wednesday, down Yuan 47/mt on week.
C1 calculated LPG deep processing margins mainly on the basis of C1's intraday price assessments of spot feedstock and products, as well as average output ratio of deep processing plants. C1 also took into consideration the average processing cost of the domestic oil refining industry, transportation cost, consumption tax, value-added tax and losses, etc., while excluding the other costs like financial cost and sales tax, etc.
