Jan 4): China slashed its fuel export quota by more than half in the first batch of allocations for 2022, highlighting the nation’s strategy of progressively limiting overseas sales.
A total of 13 million tons were issued, including both general trade and tolling issuances, according to refinery officials who have direct knowledge of the matter. That’s 56% less than 29.5 million tons in the same batch for 2021.
“Looks like this year’s total fuel export quota will keep declining,” said Yuntao Liu, analyst with Energy Aspects Ltd., adding that a smaller issuance may boost competition between state refiners and independents.
There’s speculation that China may eliminate product exports by 2025. Should that happen, Asian fuel exporters — in Northeast Asia, Singapore, Malaysia and Brunei — stand to benefit as regional margins will have to rise to make up for lost Chinese barrels, according to a previous estimate by Energy Aspect —————————/—————————-
From the above , China intends to eliminate export from carbon emitting industry. Steel export (which is high energy consuming , carbon emitting and dirty industry) will also be eliminated. Good for steel manufacturers In Malaysia. 04/01/2022 7:20 PM
Shanghai steel futures broke the CNY 5000 per tonne mark, the highest since late October, amid limited supply, rising iron ore and nickel prices, and prospects of a boom in demand. Production in China is likely to be constrained in the first quarter due to factories maintenance, the Lunar New Year holidays, and efforts by the government to limit pollution during the Beijing Winter Olympics. At the same time, prices of steelmaking ingredients nickel and iron ore remain elevated, with possible supply disruptions in top iron ore exporter Australia due to a surge in coronavirus cases. Meanwhile, there are prospects demand in China will increase in the second quarter of the year as the construction and infrastructure sectors pick up and the Chinese authorities adopt stimulus measures to shore up the economy.
Several steel plants in Ukraine, including those of pipemaking group Interpipe and the Azovstal and Ilyich mills in Mariupol, both part of Metinvest, have stopped producing and shipping, trade sources said.
Metinvest and ArcelorMittal said they were significantly reducing their steel production, hampered by the suspension of rail freight services and closure of several ports. ArcelorMittal Kryvyi Rih, Ukraine's largest integrated steel company located in Kryvyi Rih city, "is working to slow down production to a technical minimum" and production will be stopped at its underground mines, according to a statement issued by ArcelorMittal from London.
Ukraine is the world's 13th largest producer of steel and fifth largest exporter of iron ore by volume. It produced 21.4 million mt of crude steel in 2021. About 80% of its steel output is exported.
Sanctions can stall Russian purchases .....................................
The appetite has already waned for Russian steel with tougher sanctions announced or expected from the EU, the US and other countries. The Russian mill source saw as a real possibility customer refusal of deliveries from the country.
"We are operating in a zone of uncertainty," the source said. "The port of Novorossiysk -- the ships are loading -- but I don't know what to do next, the situation is difficult."
In 2021, Russia made 76 million mt of steel, exporting around 40 million mt. In addition to numerous Atlantic buyers, China has recently become one of the biggest customers of Russian steel.
To Asia, Russian steel exports have mainly taken the form of billet in recent weeks.
News of the latest developments has dampened Asian demand, with a trader in Manila saying that rerollers in the Philippines would stop buying Russian and Ukrainian billet to avoid any potential risks.
Russia was the top non-Asian supplier of billet to the continent in 2021 by deal count, after Vietnam and Indonesia, having concluded 56 deals, compared with 72 and 63 by Vietnamese and Indonesian suppliers, respectively, according to spot data compiled by Platts.
Russian billet was sold mostly to the Philippines. While shipments via the Black Sea port of Novorossiisk appear to be unimpeded for now, and would likely be unscathed logistically out of the Russian Far East ports, sanctions on Russian banks involved in financing trades could scupper deals.
One Russian mill has stopped making offers to Asia "due to the impact of the bank issue," an eastern China-based trader said.
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