Based on ex-refinery price of 93-Ron gasoline, LPG deep processing plants equipped with aromatic units in Shandong Province could reap Yuan 499/mt of margin on average in theory Wednesday, down Yuan 127/mt from one week ago, C1 estimated.
Feedstock prices went up Yuan 75/mt in the past week; meanwhile, prices of aromatic type gasoline declined Yuan 150/mt and that of ultraclean LPG remained unchanged, C1’s assessment showed.
Feedstock producers recorded higher prices in the past week amid low inventories and smooth sales; however, aromatic type gasoline prices went down due to high stockpiles and bleak demand.
Demand for aromatic type gasoline as blending feedstock dropped amid losses in local gasoline prices and Sinopec’s and PetroChina’s suspension of outsourcing, market sources denoted.
Calculated by ex-refinery price of aromatic type gasoline, margins for the plants average Yuan 334/mt Wednesday, down Yuan 127/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.
