China’s Construction Squeeze Prompts Refiners to Cut Production

A decline in construction activity in China has pressured independent refiners to start curbing diesel production. Diesel is the primary output of the so-called teapots and times were good while the real estate market was booming. But the boom now seems to be over, forcing the industry into a gear change. Bloomberg reported earlier today that operating rates at the independent refineries in Shandong have dropped to the lowest in two years and that run rates are the lowest in nine years. “Downstream demand for diesel, from mining…