* March imports 5.55 mln bpd, up 8.7 pct on yr
* But March daily imports down 7 pct from mth ago
* Q1 imports up 11.4 pct on year, bolstered by stockbuild,
By Chen Aizhu and Judy Hua
BEIJING, April 10 China's imports of crude oil
eased in March from a record level hit in February but were the
third highest ever, at 5.55 million barrels per day (bpd), as
refiners in the world's second-largest consumer rebuilt stocks.
Imports are, however, expected to slow further over coming
months as oil firms start to take a breather from their recent
restocking spree, while high oil prices restrain purchases.
China imported 23.55 million tonnes of crude, up 8.7 percent
from a year ago but down from February's record of 5.95 million
bpd, preliminary data from the General Administration of Customs
showed on Tuesday.
With a string of major refiners having already shut their
plants for maintenance since March, the strong imports suggest
refiners were rebuilding inventories following a steady decline
in stocks since the fourth quarter last year.
Commercial crude oil stocks in China fell 3.77 percent by
the end of February from a month earlier, official news agency
Xinhua said last month.
Imports may also have been buoyed by government stockpiling,
as China moves toward the completion of its second phase of
strategic petroleum reserves, which have a total capacity of 170
However, shipments are expected to slow over the coming
months, with a long list of the country's top refiners having
already shut their plants for scheduled maintenance.
"Fundamentally, Chinese demand, especially diesel and
petrochemicals, does not support this pace of crude oil imports.
Refiners will remain in the red importing at this price," said a
Chinese crude oil trader.
"$120 a barrel (for Brent) is a very high price. I don't
think there is a strong momentum to build stocks at this price,"
he said, adding that the March shipments were mostly cargoes
booked in the first half of February before prices spiked.
Despite the strong import figures, oil prices
slipped below $122 on Tuesday, as the steeper than expected fall
in China's overall imports in March, which suggests slowing
domestic demand, raised concerns about oil demand growth.
For the first quarter, crude imports rose 11.4 percent on
the year to 5.66 million bpd, a pace much stronger than the rise
of 6 percent for all of 2011, bolstered by new crude processing
units started late in 2011 and run near full swing in recent
FALLING REFINERY RUNS
China's top oil refiners, including PetroChina and China
Petroleum & Chemical Corp, were seen to have cut production in
March to the lowest in 31 months on the back of poor margins, a
Reuters poll showed.
They will trim crude oil throughput further to a 35-month
low in April, a Reuters poll showed this week, as maintenance
remains heavy amid ongoing refining losses despite a fuel price
hike last month.
To help trim refiners' losses, Beijing raised gasoline and
diesel prices by 6 to 7 percent on March 20, in a second hike
this year, which took fuel prices to a record high.
China's net oil product imports were 1.86 million tonnes in
March, up 43 percent from a year earlier and up 4.5 percent from
Diesel demand in China typically picks up in April during
the spring planting season, with refiners building diesel stocks
early in the year in anticipation of a large spring draw.
"Over January and February 2012, diesel inventories built by
560,000 bpd on average, which should be more than adequate to
cover typical spring draws of some 200,000 bpd over March to
May," according to a JP Morgan research note on Monday
"We would not expect a spike in Chinese diesel imports."
China will release refinery production data on Friday, with
the final set of import and export data due on April 21.
(Editing by Ed Davies and Clarence Fernandez)