SupplyTuesday, 21 April 2026·India
China narrows fuel exports while maintaining selective supply to Asia
China has not imposed a complete ban on refined fuel exports, despite earlier speculation in the market. Instead, recent developments suggest that shipments are being carefully regulated and directed toward specific destinations. Tanker data indicates that supplies are still reaching countries like Malaysia, Vietnam, Indonesia, Australia, and the Philippines, while Hong Kong continues to receive consistent volumes. This pattern reflects a targeted distribution strategy rather than a full suspension, with exports continuing where regional demand support is required.
However, the scale of exports has declined more noticeably in April. Data shows that shipments of diesel, gasoline, and jet fuel to destinations outside Hong Kong dropped significantly in the first half of the month, reaching only around 320,000 metric tons—well below levels seen during the same period last year. Market sources indicate that export clearances are now undergoing stricter scrutiny compared to March, when refiners accelerated shipments ahead of tighter controls.
Even earlier, exports to major Asian markets had already shown a dip in March compared to February. Still, overall volumes—including shipments to Hong Kong and bonded sales—remained relatively stable on a month-to-month basis, according to customs figures.
Hong Kong continues to stand out as a key destination, with Chinese refiners maintaining steady flows of diesel and jet fuel to take advantage of strong profit margins. Industry participants note that refining margins across Asia remain elevated compared to pre-war levels, supported by ongoing supply constraints due to disruptions in refining operations across parts of Asia and the Middle East.
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However, the scale of exports has declined more noticeably in April. Data shows that shipments of diesel, gasoline, and jet fuel to destinations outside Hong Kong dropped significantly in the first half of the month, reaching only around 320,000 metric tons—well below levels seen during the same period last year. Market sources indicate that export clearances are now undergoing stricter scrutiny compared to March, when refiners accelerated shipments ahead of tighter controls.
Even earlier, exports to major Asian markets had already shown a dip in March compared to February. Still, overall volumes—including shipments to Hong Kong and bonded sales—remained relatively stable on a month-to-month basis, according to customs figures.
Hong Kong continues to stand out as a key destination, with Chinese refiners maintaining steady flows of diesel and jet fuel to take advantage of strong profit margins. Industry participants note that refining margins across Asia remain elevated compared to pre-war levels, supported by ongoing supply constraints due to disruptions in refining operations across parts of Asia and the Middle East.
Stay ahead of market trends with the Credco app. For any queries, please reach out via WhatsApp at +91 8448083211.