21 August 2019

Sinopec chairman warns of serious oil refining glut, paper says

Beijing needs to confront serious overcapacity in the oil refining industry, which could replicate the production woes of the steel sector, China Business News reported Thursday, citing Fu Chengyu, chairman of China Petroleum & Chemical Corp. (Sinopec) (00386.HK, 600028.CN). Fu said refinery capacity is expected to reach 740 million metric tons by 2015 and 910 million tons by 2020, but the average utilization ratio is only 67 percent, even less than the 72-75 percent seen in the steel industry. Fu said overcapacity is also a problem in the chemical industry and the authorities should cut export tariffs on the products, the report said.

– Contact HKEJ at [email protected]



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