Shandong lost its ability to maintain its minimum production status

The survey on living conditions in Shandong refining “can be said to be very difficult.” On June 19, when talking about the current living environment of the local refining companies, Liu Aiying, president of the Shandong Refining & Chemical Industry Association, told this reporter.
The sharp fluctuations in international crude oil prices have continued for several months. On the 16th, the price of crude oil on the New York Mercantile Exchange even rushed to a peak of 139.89 US dollars. Although it fell afterwards, it still remained above 130 US dollars. In the face of the fact that the price of refined oil products in China has risen and reversed, on the evening of June 19, the National Development and Reform Commission has already issued price adjustment measures.
“More and more losses will result in losses. At present, the refineries are basically maintained at the lowest production levels.” On June 17, a spokesperson for the Shandong Provincial Association of Fuel Oil (5133, -72.00, -1.38%, bar) said to reporters. The production cost of restarting the system is simply unsustainable."
Production restriction was maintained On June 13, an insider of a local refining company in Dongying City, Shandong Province disclosed the above situation to reporters. Dongying City, located at the mouth of the Yellow River, is intertwined with Shengli Oilfield, the second largest oil field in the country. It has been a geographically advantageous location and has long been the most concentrated area for domestic refining companies. In the area of ​​more than 100 kilometers in the center of Dongying City, there are several local refinery companies with a considerable scale, such as Lijin Petrochemical, Kenli Petrochemical, China Ocean Chemical, Fuhai Group, and Guangrao Petrochemical.
It is only 55 kilometers away from Dongying City in the south of the estuary. The pedestrians on the road are sparse. The wide streets and huge squares show the richness here. As a resource-based city, the source of wealth here is mainly from two refineries that are located in the urban areas.
On the same day, the reporter noticed that after the departure of two or three tanker trucks, the front door of several refineries appeared to be deserted. The only sound came from the noise generated by the operation of the refinery plant.
“The situation of the refineries around several places is similar. Now we are looking forward to the introduction of supportive policies by the state.” A senior middle-level manufactory on the telephone said to the reporter.
“The operating pressure of local refining companies is much more difficult than that of the two major corporations. It is impossible to enjoy national subsidies for refining, and the greater the amount of processing, the greater the losses. Many companies have to reduce production.” Liu Aiying said, “Other than that, only Deep processing is performed to make up for the losses caused by the inversion of refined oil prices."
It is understood that for a long time, the country’s crude oil quotas for geological refining have remained unchanged for many years. However, in order to survive, the company’s production capacity has continued to increase after continuous investment expansion, resulting in a far less supply of crude oil. Rely on the company's own procurement of raw oil to solve. Buying oil has become the core work of local refineries.
“We also miss the good old days. After we finish processing the crude oil in the quota, we can solve part of the production problem by taking out part of it.” The insider of the above-mentioned local refining company analyzed the reporter, “The state stipulates that the production scale of the medium-sized refinery is 3 million tons of mining companies are large taxpayers in various districts and counties, and they are related to local fiscal revenues. Even if they are only for the existence of production licenses, they must desperately go to scale."
It is reported that after a large number of investments have been made to expand production, local refining companies have to bear huge financial costs. Second, after the increase in production capacity, the supply of crude oil will not be resolved. In desperation, the oil refining companies can only look for oil.
Prior to this, raw materials for refining companies basically relied on imported fuel oil in addition to limited crude oil quotas.
“But now, the basics of processing fuel oil have stopped.” An insider who is familiar with fuel oil imports said to reporters, “The international oil prices fluctuate wildly and the import risk of fuel oil is too high. Traders have already quit a lot. The loss was too great, and it was still imported. There are some contracts that have already been signed."
Survival of OEM "You can count it, now 6,000 yuan a ton of fuel oil, refinery refined oil to about 8,300 yuan to preserve the cost." The aforementioned spokesman of the Shandong Provincial Fuel Oil Association told reporters, "Last year, fuel oil prices only 3000-4000 yuan, now almost doubled."
It is understood that this fuel oil association with Sinopec's background has only been established for several months. The original intention at that time was to organize the local refining enterprises to conduct unified fuel oil import coordination and negotiations. However, since the second quarter of this year, the situation has changed.
“So we have focused our work this year on the coordination of domestic crude oil. We are mainly trying to obtain a portion of crude oil from Sinopec for processing. These crude oils come from the Tahe River, Central Plains, and Shengli oil fields in Xinjiang,” the spokesperson said.
It is understood that in April this year, Sinopec restarted the cooperation with the local refining companies in the process of processing, Sinopec to provide crude oil, refining processing companies, the production of refined oil from Sinopec repurchase.
“The basic work is now done for Sinopec on behalf of the processing, refined oil recovered by Sinopec.” The former refinement of the company insiders confirmed to reporters, “This form, the refinery earns a processing fee, the profit is very thin.”
"The price of fuel oil fluctuates violently, one price per day. Traders generally use five days before and after shipment to settle their average price. Once they buy at a high point, they must lose no doubt." The person explained that "while processing domestic oil, because domestic oil prices One month after lagging the international market, when the company gets oil, the profit and loss have already been determined."
Regarding the profitability of crude oil processed on behalf of the company, people from the Shandong Provincial Fuel Oil Association stated that it is difficult to make an overall assessment. “The status of production and operation of each company is different. Whether it can achieve a break-even point depends on the specific company.”
"The main reason is that there is a difference in the deep processing capabilities of enterprises. Competent companies can produce more additional products. The prices of these products are completely accompanied by market conditions, and profits can make up for the losses of some of the refineries."
Although the price of crude oil is high, the ex-factory price of refined oil is market-oriented. Since the supply of refined oil is tight, why are the refining companies not passing it downstream?
In actual fact, in fact, the ex-factory pricing power of refined oil is still in the two major groups. “The ex-factory price of refinery refined oil products is basically determined by reference to the prices of the two major conglomerates repurchasing the refined oil products on the basis of processing,” explains Liu Aiying, president of the Shandong Terratics Association.
In any case, "substitution processing" is only an expedient measure for geotechnical companies. The efforts of local refining companies to find oil sources have not stopped, and acquisition by state-owned enterprises or foreign companies that have mastered the oil sources may be the only way.

PVC Corrugated Roofing Tile Production Line

PVC Roofing Sheet Machine,PVC Roofing Production Line,PVC Corrugated Sheet Production Line,PVC Corrugated Roofing Tile Production Line

WUXI HAOBANG MACHINERY MANUFACTURING CO.LTD , https://www.haobangmachinery.com