Updates export figure for end July, adds detail.
Mexico imported 44,700 b/d of gasoline from China in June, a high from that country for 2019, according to monthly stats from the energy ministry.
The volume more than doubles what the country imported from China in May of 20,700 b/d, which represented only 3pc of all Mexican gasoline imports. In June, Chinese gasoline represented 8pc of Mexico's 585,700 b/d of total gasoline imports.
Asian refiners trying to expand their reach, forecasts for growing Latin American refined products consumption and relatively low freight rates have contributed to the increasing flows from China, market participants told Argus.
President Andres Manuel Lopez Obrador has vowed to reduce Mexico's dependency on imported fuels, which come mainly from the US.
But Mexican gasoline imports coming from the US decreased to 413,000 b/d, or 71pc of the total imports in June. In May, the previous complete reported month, US gasoline exports to Mexico represented 79pc of all Mexican gasoline imports.
Until 31 July, China exported 42,200 b/d, according to oil analytics firm Vortexa, which mainly shows cargoes departing from the cities of Dalian, Quanzhou and Zhoushan into the Mexican ports of Lazaro Cardenas, Topolobampo and Rosarito, on Mexico's west coast. The US sends volumes to both coasts, but mainly supplies Mexico's Gulf coast.
Shipments are coming from West Pacific Petrochemical where state-run PetroChina owns 30pc of the company. Imports were all done by state-run Pemex and its PMI trading arm.
The Netherlands exported 57,600 b/d of gasoline in June into Mexico — more than the 44,700 b/d from China in the same month — and only behind the 413,067 b/d from the US — still the largest exporter by far, according to Mexican energy ministry (Sener) data based on date of arrival.
In the last 12 months China, Korea, and the Netherlands have switched positions several times as the next-highest fuel exporter to Mexico behind the US.Since June 2018, China has been the second-largest exporter for two of those months and the third-largest for six months.
Chinese gasoline exports to Mexico vary widely from month to month, ranging from none in March to June's 44,700 b/d.
Most Asia to west coast Latin American movements are arbitrage-based, and not based on long-term contracts, market participants have said.
Chinese exports are also driven by the export quotas they receive from the Chinese government.
