South Korean refners fnd themselves between a rock and a hard place. The US-China trade war is slowing demand in their largest export destination, while glutted petrochemical markets are eroding proftability in a segment that could have provided a counterbalance when refning margins are weak. The industry’s troubles revolve largely around China, which is being afected by slower economic growth and its continuing trade war with the US. South Korean exports of oil products to China fell by 15pc on the year to 273,000 b/d in January- June. This cut China’s share of South Korea’s products exports to 19pc, from 23pc a year earlier. But higher exports to the US - which rose by 68pc to 142,000 b/d in the frst half of this year - have helped to partially make up the gap.
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