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JLC China Bunker Market Monthly Report (July 2022)

China’s bonded bunker fuel sales rebounded in July when domestic supply tightness eased and more bonded bunker suppliers launched business, JLC data showed.

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Beijing-based commodity market information provider JLC Network Technology Co. recently shared its JLC China Bunker monthly report for July 2022 with Manifold Times through an exclusive arrangement:

Bunker Fuel Demand

Bonded bunker fuel sales rebound in July

China’s bonded bunker fuel sales rebounded in July when domestic supply tightness eased and more bonded bunker suppliers launched business.

The country’s bonded bunker fuel sales settled at around 1.68 mln mt in the month, a rally of 8.38% from June, JLC’s data shows.

Domestic supply increased as Chinese refineries’ production of LSFO surged in July. In addition, China National Offshore Oil Corporation (CNOOC) Sales (Shenzhen) Co., Ltd. started to supply bonded bunker fuel oil in July.

Chimbusco and Sinopec Zhoushan sold about 620,000 mt and 680,000 mt of bonded bunker fuel in July, JLC’s data indicates. Bonded bunker fuel sales for SinoBunker and China ChangJiang Bunker (Sinopec) were about 90,000 mt and 40,000 mt, respectively. Around 250,000 mt of of sales were made by suppliers who held local licenses, with PetroChina accounting for roughly 79,000 mt.

China’s bonded bunker fuel exports moved higher in June as the country further raised its LSFO production. The country exported about 1.51 million mt of bonded bunker fuel in June 2022, rising 2.37% from a month earlier, according to data from the General Administration of Customs of PRC (GACC).

Among these exports were roughly 1.41 million mt of heavy bunker fuel and 103,800 mt of light marine gas oil (MGO), accounting for 93.14% and 6.86% respectively.

Bonded bunker fuel exports by state-owned enterprises amounted to approximately 1.32 million mt in the month, accounting for 86.95%, while those by independent enterprises were 197,400 mt, accounting for 13.05%, the data indicates.

On a year-on-year comparison, the bonded bunker fuel exports fell by 14.10%, GACC data indicates.

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Domestic bunker fuel demand grows moderately in July

Domestic bunker fuel demand grew modestly in July when high temperatures at coastal regions caused more power consumption and fuel shipment.

The demand for domestic-trade heavy bunker fuel was around 400,000 mt in the month, growing by 80,000 mt or 25% month on month. Meanwhile, demand for light bunker fuel stabilized at roughly 150,000 mt, depressed by high prices.

Bunker Fuel Supply

Bonded bunker fuel imports hit 7-month high

China’s bonded bunker fuel imports leaped sharply and hit a 7-month high in June as domestic supply remained tight and Chinese suppliers’ stockpile was still low despite an increase in LSFO production.

China imported about 517,400 mt of bonded bunker fuel in June 2022, jumping 46.07% month on month, according to the data from the General Administration of Customs of PRC (GACC).

Though China ramped up its LSFO production in the month, the aggregate supply stayed relatively tight and failed to meet domestic demand. Most traders maintained low inventories amid insufficient supply and relatively abundant demand. Additionally, certain dealers who were optimistic about LSFO prices boosted their procurement of imported low-sulfur resources in the month with an expectation of rising bunker fuel prices in the short term.

In terms of the supplier, Malaysia overtook the UAE and ranked in the top position by exporting 277,800 mt of bonded bunker fuel to China, taking up 54% of China’s total bonded bunker fuel imports. The UAE slipped to second place with 180,600 mt, accounting for 35%. The followings were South Korea and Russia, with 41,000 mt from South Korea and 18,000 mt from Russia, accounting for 8% and 3% respectively. There was no imported bonded bunker fuel from Singapore during the month as the country’s LSFO supply continued to tighten and the supply of high-sulfur bunker fuel oil was affected by the contamination issue.

Despite a monthly surge in June, however, the bonded bunker fuel imports saw a drawdown from a year earlier, mainly as a result of softer demand amid the epidemic outbreaks. On a year-on-year comparison, the bonded bunker fuel imports dropped 16.28% in the month, GACC data indicates.

China tallied an accumulation of 2.45 million mt of imported bonded bunker fuel in the first half of this year, shrinking by more than a half from the first six months of 2021, GACC data also shows.

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Domestic blended bunker fuel supply extends gains in July

Chinese blenders supplied around 450,000 mt of heavy bunker fuel in total in July 2022, a rise of 70,000 mt or 18.4% from the previous month, JLC’s data shows.

In detail, the supply of low-sulfur asphalt, an important blendstock for heavy bunker fuel, increased in July when refineries’ operating rates climbed. Meanwhile, demand for coal-based diesel grew because of lower prices, and the supply of and demand for shale oil and light coal tar were largely balanced.

In contrast to the rise in heavy bunker fuel supply, the domestic marine gas oil (MGO) supply slipped to around 160,000 mt in the month, down by 10,000 mt or 5.88% from June.

Despite lower feedstock cost, blending margins were still low in July and blenders based their blending on rigid demand.

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Bunker Prices, Profits

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JLC Network Technology Co., Ltd is recognized as the leading information provider in China. We specialized in providing the transparent, high-value, authoritative market intelligence and professional analysis in commodity market. Our expertise covers oil, gas, coal, chemical, plastic, rubber, fertilizer and metal industry, etc.

JLC China Bunker Fuel Market Monthly Report is published by JLC Network Technology Co., Ltd every month on China bunker market, demand, supply, margin, freight index, forecast and so on. The report provides full-scale & concise insight into China bunker oil market.

All rights reserved. No portion of this publication may be photocopied, reproduced, retransmitted, put into a computer system or otherwise redistributed without prior authorization from JLC.

Related: JLC China Bunker Market Monthly Report (June 2022)
Related: JLC China Bunker Market Monthly Report (May 2022)
Related: JLC China Bunker Market Monthly Report (April 2022)
Related: JLC China Bunker Market Monthly Report (March 2022)
Related: JLC China Bunker Market Monthly Report (February 2022)
Related: JLC China Bunker Market Monthly Report (January 2022)

Note: China-based commodity market information provider JLC Technology has been providing Singapore bunkering publication Manifold Times China bunker volume data since 2020. Data from that period is available here.

Photo credit: JLC Network Technology
Published: 25 August, 2022

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Alternative Fuels

Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

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Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Taiwanese shipping firm Yang Ming Marine Transport Corporation (Yang Ming) and South Korean shipbuilder Hanwha Ocean on Wednesday (2 September) signed a shipbuilding contract for six 13,000 TEU class LNG dual-fuel container vessels. 

The contract was signed by Dr. Chuck Tsai, Chairman of Yang Ming, and Mr. Charles Kim, CEO of Hanwha Ocean. The vessels are scheduled for delivery between 2028 and 2029. 

They will complement Yang Ming’s existing fleet of 10,000+ TEU vessels and serve as key vessels on East-West services, with deployment flexibility across trade lanes connecting Asia with the East and West Coasts of North America, South America, and the Mediterranean. 

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

“As Yang Ming transitions toward net-zero emissions, LNG provides a relatively mature and economically viable alternative fuel solution, capable of reducing greenhouse gas emissions by approximately 20%,” the company said. 

“At the same time, ammonia can serve as a carbon-free fuel by utilising converted LNG storage facilities, while offering relatively lower conversion costs and comparatively well-developed supply chains and infrastructure. The Ammonia Fuel Ready design will therefore provide Yang Ming with greater flexibility in responding to increasingly stringent international regulations on greenhouse gas emissions.”

In addition, the vessels will be equipped with Type B LNG fuel tanks with a design pressure of 1.0 bar to enhance the safety and efficiency of LNG operations, together with a range of energy-saving technologies, including Wind Shields, Rudder Bulbs, Pre-Swirl Stators, and Shore Power Systems. Smart ship technologies and cybersecurity protection features will also be incorporated to enhance operational efficiency, safety, and reliability while effectively reducing fuel consumption and greenhouse gas emissions.

Deliveries under Yang Ming’s next-generation fleet optimization plan commenced earlier this year. By 2030, a total of 24 new vessels are expected to enter service. 

This includes 18 LNG dual-fuel vessels—comprising five 15,500 TEU, seven 16,000 TEU, and the six 13,000 TEU vessels under this contract—alongside six 8,000 TEU methanol dual-fuel-ready ships. 

 

Photo credit: Yang Ming Marine Transport
Published: 4 September, 2026

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Alternative Fuels

LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Both secured AiP for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Lloyd’s Register (LR) and the Marine Design and Research Institute of China (MARIC) on Thursday (3 September) have secured Approval in Principle (AiP) for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

Announced at SMM 2026, the concept addresses one of the biggest investment challenges facing shipping today: the need to develop vessels and capabilities that can support a range of alternative fuel options and pathways as technologies, infrastructure and regulations evolve.

While LNG is already a mature fuel pathway, methanol and ammonia remain at an earlier stage of development, with questions around global fuel availability, infrastructure development, economics and long-term adoption.

The 114,000 DWT tanker concept has been designed as a product and crude oil carrier that can accommodate future conversion to LNG, methanol or ammonia as technologies, regulations and fuel supply chains mature. By incorporating conversion readiness at the design stage, the concept aims to reduce future retrofit complexity and provide owners with greater confidence when planning long-term fleet investments.

The design concept was reviewed against LR’s July 2026 class rules and regulations, including requirements relating to ships using gases and other low-flashpoint fuels, alongside relevant IACS Common Structural Rules for oil tankers. Final classification and statutory approval remain subject to full compliance with all applicable rules and regulations.

Theo Kourmpelis, Global Business Director for Tankers, Lloyd’s Register, said: “Shipowners are being asked to make major investment decisions today despite continued uncertainty around which fuels will dominate in the decades ahead. Alternative fuel solutions each offer potential pathways to compliance, but fuel infrastructure, regulation and economics continue to evolve at different speeds around the world.

“Designs that preserve flexibility will be critical in helping owners manage risk while preparing for multiple future scenarios.”

Si Nan, Marine & Offshore Marketing Department Vice Director, MARIC, said: “As the industry explores different decarbonisation pathways, shipowners need vessel designs that can adapt alongside technological and regulatory developments. This concept was developed specifically to provide greater fuel flexibility and long-term resilience, allowing owners to respond to changing market requirements without being locked into a single fuel strategy.

“Receiving Approval in Principle from Lloyd’s Register is an important milestone that validates the design concept and supports its future development.”

 

Photo credit: Lloyd’s Register
Published: 4 September, 2026

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Alternative Fuels

DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

LNG-fuelled vessels accounted for the vast majority of August activity while the strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year.

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DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

Latest data from classification society DNV’s Alternative Fuels Insight (AFI) platform alternative-fuelled vessel ordering was strong in August, with 52 new vessels added to the platform.

This is the highest monthly total since October 2024 and follows another active month in July, when 47 vessels were added to the database.

LNG-fuelled vessels accounted for the vast majority of August activity, with 46 orders recorded. The container segment led the way with 30 orders, while the car carrier segment contributed a further 12 LNG-fuelled vessels. In addition, four ethanol-fuelled bulk carriers and two hydrogen-powered bulk carriers were added during the month, as well as one LNG bunker vessel.

The strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year. In total, 242 alternative-fuelled vessel orders have been placed in the first eight months of 2026, representing a 27% increase compared with the same period in 2025.

LNG remains the dominant fuel choice, accounting for 63% of all alternative-fuelled vessel orders registered so far this year. Container vessels represent the largest share of these LNG orders (59%), followed by car carriers (30%).

Jason Stefanatos, Global Decarbonization Director at DNV Maritime, said: “The past two months have been particularly strong for alternative-fuelled vessel ordering, with August recording the highest monthly total we’ve seen since October 2024. This has helped lift year-to-date orders to a level well above the same period last year.

“LNG remains the leading fuel choice, driven largely by activity in the container and car carrier segments. These sectors have been among the earliest adopters of alternative fuels, supported by predictable liner operations and increasing demand from cargo owners to reduce emissions across supply chains. 

“For many owners, LNG offers a combination of emissions reductions, fuel availability and future flexibility while the longer-term fuel landscape continues to evolve. 

“At the same time, the latest figures include orders for ethanol- and hydrogen-fuelled vessels, highlighting that owners continue to explore a range of decarbonization pathways. Different segments are making different fuel choices, but the overall level of activity demonstrates continued investment in lower-emission shipping.”

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Photo credit: DNV
Published: 4 September, 2026

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