Business
Increased competition from China, South Korea! India’s diesel exports to Asia slump 63% – Times of India
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India’s diesel exports hit by China, South Korea! India’s diesel exports to Asia saw a significant decline of 63% in March compared to the previous month. This drop was because of tough competition from Chinese and South Korean suppliers, which affected profit margins. Indian refiners shipped 61,000 barrels per day (bpd) of diesel to Asian markets in March, a sharp decrease from 163,000 bpd in February.
On the other hand, diesel exports to Europe increased by 6.5% to 214,000 bpd. No diesel was exported to the US during this period.
Abundant diesel stocks in Asia, particularly driven by robust exports from South Korea and China, have diminished export margins to the region. Additionally, the rise in scheduled or unscheduled refinery maintenance in Europe has spurred an uptick in import demand, Serena Huang, an analyst at Vortexa was quoted as saying by ET.
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India’s diesel export volumes to Asia fluctuate based on profit margins, ranging from 11,000 bpd in April 2023 to 189,000 bpd in August. The average monthly diesel shipments to Asia in 2023-24 stood at 92,000 bpd.
In contrast, diesel supplies to Europe remained more stable, averaging 222,000 bpd during the same period. The disruptions in global shipping routes due to the Red Sea tensions impacted India’s refined product exports.
In January, volumes sharply dropped to 56,000 bpd following Houthi attacks in the Red Sea, compelling ships to bypass the Suez Canal and opt for the longer route via the Cape of Good Hope. However, exports swiftly rebounded in February.
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In January, shipments meant for Europe were diverted to Asia, resulting in a decrease in supplies to Europe and an increase in volumes to Asia. Refined product supplies to Europe decreased to 141,000 bpd in January, while volumes to Asia increased to 382 bpd.
Overall, India’s refined product exports to Asia dropped by 15% to 332,000 bpd in March, while exports to Europe fell by 4.5% to 319,000 bpd.
On the other hand, diesel exports to Europe increased by 6.5% to 214,000 bpd. No diesel was exported to the US during this period.
Abundant diesel stocks in Asia, particularly driven by robust exports from South Korea and China, have diminished export margins to the region. Additionally, the rise in scheduled or unscheduled refinery maintenance in Europe has spurred an uptick in import demand, Serena Huang, an analyst at Vortexa was quoted as saying by ET.
Also Read | China pips India to become largest buyer of sea-borne Russian crude at deeply discounted prices
India’s diesel export volumes to Asia fluctuate based on profit margins, ranging from 11,000 bpd in April 2023 to 189,000 bpd in August. The average monthly diesel shipments to Asia in 2023-24 stood at 92,000 bpd.
In contrast, diesel supplies to Europe remained more stable, averaging 222,000 bpd during the same period. The disruptions in global shipping routes due to the Red Sea tensions impacted India’s refined product exports.
In January, volumes sharply dropped to 56,000 bpd following Houthi attacks in the Red Sea, compelling ships to bypass the Suez Canal and opt for the longer route via the Cape of Good Hope. However, exports swiftly rebounded in February.
Also Read | Significant milestone! Gautam Adani says Adani Green is now India’s first “das hazari” in renewable energy space
In January, shipments meant for Europe were diverted to Asia, resulting in a decrease in supplies to Europe and an increase in volumes to Asia. Refined product supplies to Europe decreased to 141,000 bpd in January, while volumes to Asia increased to 382 bpd.
Overall, India’s refined product exports to Asia dropped by 15% to 332,000 bpd in March, while exports to Europe fell by 4.5% to 319,000 bpd.
