BEIJING (Commodity Online): China has imported about 320,000 tonnes of diesel in order to meet its domestic shortages. Diesel is primarily used for power generation in China and the recent imports will further tighten the market in North Asia where buyers are competing for purchases.
China has been experiencing a power shortage and the diesel imports are expected to meet the demand from the power generators and plants. Royal Dutch Shell's had earlier shutdown its 500,000 bpd diesel refinery in September due to fire damage and the resulting supply deficit has since put strain in the Asian markets.
Additional supplies in December from PetroChina and Sinopec may ease down the markets but most traders believe that increased Chinese buying is likely to continue into the early part of 2012 and will in turn boost profit margins of refineries.
