Beijing-based commodity market information provider JLC Network Technology Co. recently shared its JLC China Bunker monthly report for July 2024 with Manifold Times through an exclusive arrangement:

China’s bonded bunker fuel sales retreat in July

China’s bonded bunker fuel sales retreated in July, as the bunkering operation of southern ports was struck by the landfall of “Typhoon Gaemi”.

The country tallied 1.74 million mt of bonded bunker fuel sales in the month, with the daily sales at 56,248 mt, falling by 5.08% month on month, JLC’s data shows.

Bonded bunker fuel sales by Chimbusco, Sinopec (Zhoushan), SinoBunker and China Changjiang Bunker (Sinopec) settled at 505,000 mt, 600,000 mt, 65,000 mt and 40,000 mt, while those by suppliers with regional bunkering licenses stood at 533,700 mt, the data shows.

China’s bonded bunker fuel exports fall in H1, but sales grow

China’s bonded bunker fuel exports fell in the first half of 2024, because of delayed customs clearance of some cargoes, but its actual bunker fuel sales grew when domestic supply increased.

The country exported about 9.59 million mt of bonded bunker fuel in the first six months, with the daily exports at 52,713 mt, down by 8.37% from the same months in 2023, JLC estimated, with reference to data from the General Administration of Customs of PRC (GACC). The daily exports dropped more than the total exports, due to one more day in H1 2024 than in H1 2023.

Heavy bunker fuel exports totaled about 9.05 million mt in H1, accounting for 94.29% of China’s total exports, while light bunker fuel exports settled at 547,700 mt, accounting for 5.71%.

Though global economic recovery was slower than expected, China’s foreign trade performed relatively well, and its sales of bonded bunker fuel grew steadily amid larger LSFO production. Chinese refiners sold a total of 10.16 million mt of bonded bunker fuel in January-June, with the daily sales at 55,834 mt, up by 8.46% year on year, JLC’s data shows.

Bonded bunker fuel exports are not equal to bonded bunker fuel sales, as the exports refer to the volume of cargoes flowing into bonded tankers while the sales refer to the actual volume of bunkering.

In June alone, China’s bonded bunker fuel exports settled at 1.68 million mt, plunging by 17.74% year on year, with the daily exports at 55,970 mt, inching down by 0.53% from May. In breakdown, heavy bunker fuel exports settled at 1.59 million mt in the month, accounting for 94.50%, while light bunker fuel exports settled at 92,300 mt, accounting for 5.50%.

Domestic-trade heavy bunker fuel demand contracts in July

Domestic-trade heavy bunker fuel demand contracted further in July, as shipowners just made small deals based on their rigid demand when the surplus of ships lingered. Domestic-trade heavy bunker fuel demand settled at 370,000 mt in the month, a decrease of 10,000 mt or 2.63% from the previous month.

On the flip side, domestic-trade light bunker fuel demand amounted to 150,000 mt in July, climbing by 10,000 mt or 7.14% month on month. Trade in the light bunker fuel market turned relatively active after the end of typhoon weather.

Bunker Fuel Supply

China’s bonded bunker fuel imports rally in June

China’s bonded bunker fuel imports rallied in June, as inventory in East China declined and freight rates dropped, with the imports of HSFO and MGO climbing, while LSFO imports changing little.

The country imported 361,500 mt of bonded bunker fuel in the month, a boost of 16.69% month on month, JLC estimated, with reference to data from the GACC.

Bonded bunker distributors in East China boosted their HSFO imports, as their inventory pressure eased to some degree, in addition to lower freight rates.

MGO imports also rose in June, but the rise was relatively modest.

China’s daily LSFO output grew slightly in June, due to one less day in the month than in May. In this case, distributors maintained largely stable LSFO imports.

On a year-on-year comparison, however, China’s bonded bunker fuel imports plunged by 20.27% in June, which could mainly be ascribed to a relatively high base a year earlier.

Regarding the imports by supplier, Malaysia remained in the top position by exporting 99,600 mt of bonded bunker fuel to China, which accounted for 27.56% of the latter’s total imports. Meanwhile, Iraq overtook Singapore as the second largest supplier with 84,500 mt, accounting for 23.36%. Singapore slipped to the third place with 75,900 mt, making up 21.01%, while South Korea remained in the fourth place with 59,500 mt, occupying 16.44%. Besides, bonded bunker fuel imports from Japan settled at 42,000 mt, accounting for 11.63%.

China recorded a total of 1.98 million mt of bonded bunker fuel imports in the first half of this year, an uptick of 6.72% from the corresponding period in 2023, decelerating from a jump of 15.46% in January-May.

Domestic-trade bunker fuel supply tightens in July

Domestic-trade bunker fuel supply continued to tighten in July, as the availability of low-sulfur residual oil decreased on refinery maintenance and residual oil supply was insufficient when some blenders in Northeast China suspended production.

Chinese blenders supplied about 380,000 mt of heavy bunker fuel in the month, down by 20,000 mt or 5.00% from the previous month, JLC’s data shows. Meanwhile, domestic-trade MGO supply was estimated at 150,000 mt, a cut of 10,000 mt or 6.25% month on month. Refineries showed lower interest in MGO production as diesel prices weakened.

Bunker Prices,Profits

Editor
Yvette Luo
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Sales (Beijing)
Tony Tang
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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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Related: JLC China Bunker Fuel Market Monthly Report (June 2024)
Related: JLC China Bunker Fuel Market Monthly Report (May 2024)
Related: JLC China Bunker Market Monthly Report (April 2024)
Related: JLC China Bunker Market Monthly Report (March 2024)
Related: JLC China Bunker Fuel Market Monthly Report (February 2024)
Related: JLC China Bunker Market Monthly Report (January 2024)

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 earlier periods are available here.

Photo credit: JLC Network Technology
Published: 12 August, 2024