China exported 620,000 tonnes of diesel fuel in April, the lowest since July last year as refiners scaled back overseas sales amid narrower export margins and strong demand at home, data showed on Thursday.

April’s diesel exports were higher than the 530,000 tonnes shipped out a year earlier, but down 56.9% from the 1.44 million tonnes exported in March, data from the General Administration of Customs showed.

Gasoline exports fell to 820,000 tonnes, versus 980,000 tonnes in April of 2022.

Aviation fuel exports amounted to 830,000 tonnes, down from 960,000 tonnes a year earlier, the data showed.

Despite elevated refinery throughput, China’s total refined fuel exports, which also include marine bunker, fell in April to the lowest monthly level since last July, suggesting firmer domestic sales.

Refining giant Sinopec Corp sees China’s diesel and gasoline demand growing more in the second quarter than in the first three months of 2023, after expanding domestic fuel sales by 8.5% year-on-year during the first quarter.

Demand for gasoline and aviation fuel recovered more strongly than diesel as more people travelled domestically and abroad since China removed COVID-19 restrictions in late 2022.

A struggling property sector and a slower-than-expected industrial output growth has been a drag on China’s diesel demand recovery.

Last week, China issued 9 million tonnes of fuel export quotas under a second allotment for 2023, half that of the 18.99 million tonnes released in January but double the allocation of 4.5 million tonnes issued around a year earlier.

Thursday’s data also showed China imported 4.77 million tonnes of liquefied natural gas in April, up 10.3% from 4.35 million tonnes a year earlier, as recovering domestic demand and a falling spot market LNG-AS encouraged purchases.
Source: Reuters (Reporting by Aizhu Chen and Andrew Hayley; Editing by Himani Sarkar and Shweta Agarwal)