Argus Media: Japan’s bonded bunker sales slow in August

Maiko Nakashima of global energy and commodity price reporting agency Argus Media on Wednesday (14 October) published a report informing of bonded bunker sales figures at Japan:

Japan’s bonded bunker sales edged lower in August, as Japanese manufacturers reduced operations during the traditional holiday week in the middle of the month.

There were 2.7mn bl (87,000 b/d) of bonded marine fuel sales in Japan during the month, down by 0.6pc from July but up by 8.2pc from a year earlier, data released by the trade and industry ministry (Meti) today show.

Total consumption of Japanese bunkers continues to gradually recover, with demand estimated at 90pc of year-earlier volumes in August, according to major Japanese shipowners.

Bulk carrier operations during the month reached almost the same level as in August 2019, supported by strong demand for coal and iron ore in China, the shipowners said. The impact of the Covid-19 pandemic on tanker operations was limited, as many vessels are hired under long-term contracts. But a fall in refinery output compared to a year earlier slowed tanker activity in some markets.

Vehicle carriers operated at just 60-80pc of year-earlier levels in August. But shipowners expected operations to have picked up in September as exports increased amid a rise in crude steel output. Japan’s crude steel production in August increased by 6.6pc from July, according to the Japan iron and steel federation.

Photo credit and source: Argus Media
Published: 15 October, 2020