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

China’s bonded bunker fuel sales rebound in November

China’s bonded bunker fuel sales rebounded in November, as bunker suppliers received more imported cargoes, also as a result of some ports’ and companies’ attempts to boost sales.

The country sold about 1.52 million mt of bonded bunker fuel in the month, with daily sales at 50,647 mt, up by 8.03% from a month earlier, JLC’s data shows.

Bonded bunker fuel sales by Chimbusco, Sinopec (Zhoushan), SinoBunker and China Changjiang Bunker (Sinopec) settled at 320,000 mt, 570,000 mt, 62,000 mt and 15,000 mt in the month, while those by suppliers with regional bunkering licenses came in at 552,400 mt.

Overall bunkering demand was relatively fair in November, and bunker suppliers saw more inflows of imported low-sulfur fuel oil (LSFO). Meanwhile, some Chinese ports and bonded distributors made efforts to boost their sales to achieve their sales targets by the end of this year. However, there were also some companies cutting sales as they had completed their sales targets.

China’s bonded bunker fuel exports drop to 8-month low in October

China’s bonded bunker fuel exports plunged significantly in October, hitting an eight-month low, because of tight LSFO supply, while bonded bunker fuel imports surge to a 35-month high.

The country exported roughly 1.28 million mt of bonded bunker fuel in the month, the lowest level since February 2024, JLC estimated, with reference to data from the General Administration of Customs of PRC (GACC). The daily exports stood at 41,374 mt in October, down by 43.16% month on month and 11.99% year on year.

Among the cargoes, heavy bunker fuel exports settled at 1.20 million mt, accounting for 93.76% of the country’s total exports, while light bunker fuel exports came in at 80,000 mt, making up 6.24%.

Chinese refiners slashed their LSFO production as their export quotas tightened, coupled with the lingering impact from bad weather at certain ports, dragging down China’s bonded bunker fuel exports. 

Refiners produced only 787,700 mt of LSFO in October, with the daily output at 25,410 mt, a loss of 23.23% month on month and 22.39% year on year, JLC’s data shows.

China’s bonded bunker fuel exports totaled 16.37 million mt in January-October, with the daily exports at 53,685 mt, a slip of 1.96% from the corresponding months in 2023, the data shows. In breakdown, heavy bunker fuel exports stood at 15.28 million mt, accounting for 93.32%, while light bunker fuel exports amounted to 1.09 million mt, accounting for 6.68%.

Domestic-trade bunker fuel demand rallies in November

Domestic-trade bunker fuel demand rallied in November, as trade became more active amid increasing supply of consumption-tax-included resources.

Domestic-trade heavy bunker fuel demand settled at 380,000 mt in the month, a gain of 20,000 mt or 5.56% from the prior month, JLC’s data shows.

Regarding the consumption by region, the Bohai Rim still took a major share on the strength of competitive prices, while the turnover of other regions was limited.

At the same time, domestic-trade light bunker fuel demand jumped to 150,000 mt, up by 20,000 mt or 15.38% month on month. Participants were slightly bullish on light bunker fuel prices when transportation demand in inland rivers became seasonally strong and diesel demand from infrastructure construction increased.

Bunker Fuel Supply

China’s bonded bunker fuel imports surge again in October

Chinese companies boosted their bonded bunker fuel imports to 675,400 mt in October, a surge of 19.18% from the previous month and 66.93% from a year earlier. The imports reached the highest level since November 2021.

Bonded suppliers continued to boost their imports to meet demand when domestic supply tightened further. These distributors placed orders for a large amount of imported LSFO in late August and September, and some of the cargoes arrived in October, which also pushed up October’s LSFO arrivals. High-sulfur fuel oil (HSFO) imports climbed in October, while marine gas oil (MGO) imports held largely stable.

Regarding the imports by supplier, Malaysia remained the largest supplier with 271,300 mt, accounting for 40.17% of China’s total imports. Meanwhile, Singapore climbed to the second place with 265,800 mt, occupying 39.36%, followed by Russia with 56,900 mt, accounting for 8.42%. South Korea and Japan came in third and fourth with 42,900 mt and 38,500 mt, making up 6.35% and 5.69%, respectively.

In the first ten months, China imported about 4.03 million mt of bonded bunker fuel, soaring by 22.61% year on year, speeding up from an upsurge of 16.39% in January-September.

Domestic-trade bunker fuel supply rises in November

Domestic-trade bunker fuel supply rose in November, because of more supply of blendstock.

Chinese blenders supplied about 400,000 mt of heavy bunker fuel in the month, a boost of 30,000 mt or 8.11% from the previous month, JLC’s data shows. More supply of low-sulfur residual oil and shale oil prompted blenders to ramp up their production.

Meanwhile, domestic-trade MGO supply leaped to 180,000 mt, up by 20,000 mt or 12.5% month on month. Refineries maintained high operating rates, coupled with rising diesel prices and relatively good diesel demand, leading to a surge in MGO supply.

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 recognised as the leading information provider in China. We specialise 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 (October 2024)
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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 earlier periods are available here.

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