China may export up to 220,000 metric tons of diesel in April to ease its supply glut, traders said Tuesday.
The country will reduce its exports in April from a likely peak of 330,000 tons in February after domestic refiners cut output and demand improved, they said. Official data for March exports haven't been announced to date.
PetroChina Co. (PTR) will sell 70,000 tons of diesel in April, or one medium-range cargo each from its Dalian refinery and joint venture Dalian West Pacific Petrochemical Co., they said.
China Petroleum & Chemical Corp. (SNP), or Sinopec, plans to export 150,000 tons, the traders said.
China could cut exports further as domestic demand recovers following a government retail price hike March 25.
Traders said previously that the price hikes signaled to the market that it is time to buy diesel as prices are likely to rise further in the future.