Chinese companies buy VLSFO from international market

摘要

Even though Chinese state-owned refiners have already pledged to produce 14MM mt(257K b/d)of the IMO-2020-compliant fuel next year,tax breaks to encourage domestic refineries to increase output of very-low-sulfur fuel oil(VLSFO)have not yet materialized.Market participants have anticipated that Beijing will announce a 1.218 yuan($1.77.11)/mt waiver to the consumption tax and rebates to the 13% value-added tax on fuel oil,two moves that will increase the economics of VLSFO production.