China's independent refiners cut output in May as losses mount, sources say

Independent refiners in China's eastern province of Shandong are cutting fuel output due to crumbling margins and weak domestic demand. The cuts come despite Beijing's directive to maintain fuel production to protect domestic supplies. Operating rates have slipped to around 50% from 55% in April, and are expected to fall further. Refiners face estimated losses of 500-600 yuan per ton of crude processed, prompting some to shut plants for maintenance or lower run rates.