Singapore (Platts)--22Feb2011/114 am EST/614 GMT

China's refineries processed 35.53 million mt or an average of 8.4 million b/d in January, up 11.4% year on year, the country's economic planner National Development and Reform Commission said in a statement late Monday.

"Overall, the oil industry ran smoothly in January. Supply of refined products was adequate while consumption appears to have eased from the earlier high, leading to an increase in inventories, guaranteeing supplies to help fight the drought and other key requirements," the NDRC said.

Refined product output grew 10.7% year on year to 21.32 million mt, of which diesel accounted for 13.37 million mt, the NDRC said, quoting industry statistics. Diesel production in January was 11.5% more than a year ago.

Total crude production increased 6.2% to 17.48 million mt, while crude imports were 22.96 million mt, which was 14.8% more than in January 2010, the NDRC said.

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On January 14, preliminary data released by the General Administration of Customs showed that crude oil imports rose 27.41% year on year to 21.8 million mt.

Consumption of petroleum products increased 8.7% year on year to 19.36 million mt, but daily average consumption dropped 4%.

Diesel consumption in January increased 6.9% year on year to 11.7 million mt. Daily average consumption, however showed a fall of 6.9%.

By the end of January, inventories of refined products were 1.7 million mt more than the previous month, and 1.24 million more than a year ago, the NDRC said.

The country suffered a severe shortage of diesel during the last quarter of 2010 as local enterprises used it to generate electricity to keep operating during periods of power rationing. Some local governments in China switched off electricity supplies as part of commitments made to Beijing on energy conservation and emission cuts.

--Calvin Lee, calvin_lee@platts.com