Beijing-based commodity market information provider JLC Network Technology Co. recently shared its JLC China Bunker monthly report for November 2023 with Manifold Times through an exclusive arrangement:

Bunker Fuel Demand

China sees a rally in its daily bonded bunker fuel sales in November

China saw a rally in its daily bonded bunker fuel sales in November, due to multiple factors.

The country sold about 1.63 million mt of bonded bunker fuel in the month, with daily sales at 54,167 mt, climbing by 3.33% from October, JLC’s data shows.

The sales by Sinopec Zhoushan and SinoBunker rose to 600,000 mt and 75,000 mt in the month respectively, while those by Chimbusco slipped to 480,000 mt. Low-sulfur fuel oil supply in Zhoushan was relatively abundant, while that in South and North China tightened further.

The sales by China ChangJiang Bunker (Sinopec) still stabilized at 35,000 mt. Suppliers with regional bunkering licenses tallied 435,000 mt of bonded bunker fuel sales in the month, up from 420,000 mt in the previous month.

China’s bonded bunker fuel exports drop in October

China’s bonded bunker fuel exports dropped in October, mainly as a result of tightening domestic supply.

The country tallied about 1.46 million mt of bonded bunker fuel exports in the month, a decline of 8.02% month on month, JLC estimated, with reference to data from the General Administration of Customs of PRC (GACC).

Chinese refineries slashed their low-sulfur fuel oil (LSFO) output in October, as their production enthusiasm was dented by bad margins and export quota tightness. Meanwhile, China’s bonded bunker fuel lacked price advantages as tighter supply pushed up the country’s bonded 0.5% sulfur bunker fuel prices. In addition, bonded distributors reduced purchases as freight rates at some Chinese ports increased amid a decline in the barging capacity.

China exported about 1.39 million mt of heavy bunker fuel and 67,500 mt of light bunker fuel in October, which accounted for 95.37% and 4.63% of the country’s total exports respectively. Suppliers with national bunkering licenses recorded 1.03 million mt of bonded bunker fuel exports, accounting for 70.96%, with Sinopec Fuel Oil and Chimbusco taking 64.11%. Meanwhile, enterprises with regional licenses exported 423,300 mt of bonded bunker fuel, occupying 29.04%.

On a year-on-year comparison, however, China’s bonded bunker fuel exports jumped by 18.14% in October. The surge was mainly ascribed to a low base a year earlier when global shipping demand was hit hard by virus resurgences.

In the first ten months of this year, China’s bonded bunker fuel exports totaled about 16.70 million mt, inching up by 0.74% from the corresponding months of 2022. Among these exports were 15.83 million mt of heavy bunker fuel and 870,100 mt of marine gasoil (MGO), accounting for 94.79% and 5.21% respectively.

Regarding the exports by supplier, enterprises with national licenses exported roughly 13.18 million mt, accounting for 78.93%, while those with regional licenses exported 3.52 million mt, making up 21.07%.

Domestic-trade heavy bunker fuel demand grows further in November

Domestic-trade heavy bunker fuel demand grew further in November, as some shipowners showed higher buying interest amid a rise in freight rates and a pick-up in terminal shipping demand. Domestic-trade heavy bunker fuel demand increased to 450,000 mt in the month, up by 50,000 mt or 12.5% month on month, JLC’s data shows.

Conversely, domestic-trade light bunker fuel demand decreased in November, as diesel consumption shrank amid colder weather. Domestic-trade marine gasoil (MGO) demand settled at 160,000 mt in the month, sliding by 5,000 mt or 3.03% from October.

Bunker Fuel Supply

China boosts its bonded bunker imports in October

China slightly boosted its bonded bunker fuel imports on month in October, as domestic supply tightened further.

The country imported about 404,600 mt of bonded bunker fuel in the month, rising by 3.80% from September, JLC estimated, with reference to data from the General Administration of Customs of PRC (GACC).

Singapore became the largest supplier by shipping 140,300 mt of bonded bunker fuel to China, accounting for 34.69% of the latter’s total imports. Japan came second with 77,500 mt, accounting for 19.17%, while Russia ranked third with 64,700 mt, occupying 15.98%. Malaysia slipped to the fourth place with 62,800 mt, accounting for 15.53%, while South Korea slid to the fifth place with 56,800 mt, accounting for 14.04%. In addition, there were about 2,413 mt of bonded bunker fuel coming from Hong Kong, China, accounting for 0.60%.

Chinese refineries decelerated their LSFO production because of tighter export quotas, leading to a further decline in domestic supply. In this case, bonded distributors imported more LSFO to fill the demand gap. However, high-sulfur fuel oil imports decreased amid stricter inspections, while marine gasoil (MGO) imports held largely stable.

On a year-on-year comparison, however, China’s bonded bunker fuel imports plunged by 19.71% in October.

Domestic-trade heavy bunker fuel supply increases further in November

Domestic-trade heavy bunker fuel supply increased modestly in November, while light bunker fuel supply tightened.

Chinese blenders supplied about 460,000 mt of domestic-trade heavy bunker fuel in the month, rising by 10,000 mt or 2.22% month on month, JLC’s data indicates. Blenders increased their production when downstream demand climbed, also because of relatively ample supply of low-sulfur residual oil.

By contrast, domestic-trade marine gasoil (MGO) supply settled at 160,000 mt in the month, descending by 20,000 mt or 11.11% from a month earlier. Refineries lowered their light bunker fuel output amid lower margins.

Bunker Prices, Profits

Editor
Yvette Luo
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Sales (Beijing)
Tony Tang
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Sales (Singapore)
Ginny Teo
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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.

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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: 8 December, 2023