China’s Teapot Refineries Cut Operations to Their Lowest Level Since 2017

The independent refiners in China, the so-called teapots, have slashed their refinery run rates to the lowest level since 2017, as high feedstock prices, weak domestic fuel consumption, and restricted exports have hit margins. Refinery runs at the refiners in the Shandong province slumped to just 50.5% last week, per data from consultancy JLC cited by Bloomberg. These run rates are even lower than in 2020, when the pandemic hit China’s fuel consumption. The current utilization rates are at the l