China February Petroleum product net exports drop and Teapot regulations tighten
중국 2월 석유제품 순수출 급감과 Teapot 규제 강화
Hana Financial Investment | 2018.03.12
1) Refining margins are significantly higher than last year's level
2) Domestic / diesel margin remains at a high level. Tight supply and demand due to recovery in global industrial production
3) China's net exports of petroleum products fell 30% MoM in February. On the other hand, China Teapot and state-owned companies did not change their utilization rates. Influence of improving internal demand
4) China enforces the oil consumption tax regulations strengthened on March 1. All transactions must be registered in the system. For the authorities, the purpose is to prevent the tax portlets such as Teapot by grasping the details of all transactions. In the future, this will be shared by central and local governments. Teapot's capacity utilization and profitability will be negatively impacted by the difficulties of local government protection of Teapot. Mid- to long-term supply and demand positives. Top pick (s) SK Innovation and S-Oil
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