China’s independent refineries’ imports of Iranian crude could fall from the record levels registered in March due to the intense sanction threats from the US, affecting trade and refinery operations, sources said on April 3, Report informs via S&P Global.
The Iranian crude imports by the country’s independent refineries reached an all-time high of 8.07 million mt (1.91 million b/d) in March, according to Platts data. This marks an 11.9% increase from the previous high of 1.71 million b/d in August 2024 and a 19.5% surge from February’s six-month peak of 1.6 million b/d, the data showed.
The rebound was driven by improved logistics, including a drawdown of floating storage off Malaysia, as well as competitive pricing compared to alternative feedstocks, according to sources.
However, market analysts said the momentum could slow in April due to renewed US sanctions on Iran’s energy sector in recent weeks.
While some independent refiners are adopting a wait-and-see approach amid the enhanced geopolitical risks, traders expect imports to remain elevated — around 7 million mt (1.71 million b/d) in April — as long as Iranian crude remains competitively priced.
“Independent refiners will keep buying these cargoes if they offer better economics than other options,” said a trade source. “But the latest US measures could tighten supply chains.”
