China’s Teapot Refineries Cut Operations to Their Lowest Level Since 2017

China's independent refiners, known as teapots, have significantly reduced their operations to their lowest level since 2017 due to soaring feedstock costs, sluggish domestic fuel demand, and export restrictions. Refinery runs in Shandong province dipped to just 50.5%, according to consultancy JLC and Bloomberg, even lower than during the pandemic in 2020. This downturn highlights the broader challenges faced by the industry, impacting fuel supply and prices, and underscores the economic strain from both global and domestic factors.