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ZhenHua Oil Assisted Huajin Group in Successfully Exporting Refined Oil Products for the First Time

PublishTime:2021-04-25 Hits:879

On December 19, 2020, Forever Prosperity, the ship which carried diesel oil from Huajin Group, departed from Bayuquan Port, marking the successful exporting of her refined oil products under general trade mode for the first time.

For a long time, several state-owned petrochemical enterprises exclusively hold the general export quota for refined oil products in China. Under the guidance of our parent company, ZhenHua Oil and its sister company, Huajin Group, both as stated-owned companies, set the target of obtaining the export quota. We finally obtained the general trade export quota of refined oil products of 50,000 tons approved by the Ministry of Commerce on November 18, 2020 through hard efforts. After learning the news, a special refined oil team of ZhenHua Oil rushed to Huajin Group at the earliest time to negotiate on the relevant export issues, and made clear of the work ideas for next steps with Huajin Group. With rich experience and sharp market judgment, ZhenHua Oil's traders made the transactions with a foreign counterparty at a price higher than the market price of the same period, and made a hedging plan for Huajin Group to avoid the pricing risks. This export deal was characterized by tight schedule, heavy tasks, higher demands, and involved many work nodes and contact units. ZhenHua Oil selected Sinochem as the export agent through comparison and selection, and worked with Huajin Group in a short period of time to determine the operation process and implement the details of export logistics, customs declaration, license application, drawback, etc. Finally we successfully finished the hard task.

The successful fulfilment of the first refined oil products export transaction under general trade mode has expanded trading broader for ZhenHua Oil, and we are on our way to optimizing the sales strategy for refined oil products, to enhancing the flexibility of sales channels, and to creating greater profits under the new development pattern of "dual cycle".