China's August refined fuel exports exceed pre-Iran war levels, jet fuel exports hit record high

• Total refined oil exports reached 6.01 million tons in August after China began easing restrictions in mid-July to capitalize on higher overseas margins
• Jet fuel exports set a monthly record at 2.55 million tons (up 41.4% y/y) and diesel jumped 42.1% to 1.33 million tons, the highest since March 2024
• LNG imports declined 17.8% year-over-year to 5.16 million tons in August, contributing to a 6.8% drop for the January-August period

Summary: China's August Refined Fuel Exports Surge Amid Easing Restrictions

Key Developments

China's refined oil product exports increased 12.7% year-over-year in August, reaching 6.01 million metric tons, as Beijing eased export restrictions initially imposed to protect domestic supplies during Middle East tensions related to the Iran war.

Notable Performance by Product

Jet Fuel: Exports surged 41.4% year-over-year to 2.55 million tons, setting a new monthly record. However, year-to-date (January-August) exports remained down 14.4% at 11.76 million tons.

Diesel: Exports jumped 42.1% year-over-year to 1.33 million tons, the highest level since March 2024. Year-to-date diesel exports increased 5.9% to 4.84 million tons.

Gasoline: Exports totaled 700,000 tons, down 17.5% year-over-year but the highest since October of the previous year. Year-to-date gasoline exports fell sharply by 57.4% to 2.42 million tons.

Policy Context

China restricted refined product exports earlier in the year to safeguard domestic supplies amid Middle East supply risks. Restrictions began easing in mid-July, with further relaxation expected in September, allowing exporters to capitalize on higher international margins.

LNG Imports Decline

China's liquefied natural gas (LNG) imports fell 17.8% year-over-year in August to 5.16 million tons. Year-to-date LNG imports decreased 6.8% to 38.86 million tons.

Market Implications

The export surge, particularly in jet fuel and diesel, signals China's return to its role as a key Asian refined products supplier, potentially impacting regional pricing and supply dynamics as higher overseas margins attract Chinese exporters.