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

China’s bonded bunker fuel sales decrease in August

China’s bonded bunker fuel sales decreased in August, as LSFO supply tightened and the bunkering operation of Zhoushan Port was hit by ship congestion.

The country sold about 1.72 million mt of bonded bunker fuel in the month, with the daily sales slipping by 1.65% month on month to 55,323 mt, JLC’s data shows.

Bonded bunker fuel sales by Chimbusco, Sinopec (Zhoushan), SinoBunker and China Changjiang Bunker (Sinopec) settled at 480,000 mt, 590,000 mt, 55,000 mt and 36,000 mt, respectively. Meanwhile, suppliers with regional bunkering licenses sold 554,000 mt, the data indicates.

China’s bonded bunker exports grow in July, but sales drop

China’s bonded bunker fuel exports grew in July after the customs clearance of some delayed shipments, but the country’s actual bunker fuel sales dropped amid lower domestic production.

The country exported about 1.76 million mt of bonded bunker fuel in the month, with the daily exports at 56,910 mt, up by 1.68% from the previous month and 9.14% from a year earlier, JLC 

estimated, with reference to data from the General Administration of Customs of PRC (GACC).

In breakdown, heavy bunker fuel exports settled at 1.66 million mt in July, accounting for 94.34% of the total, while light bunker fuel exports came in at 99,900 mt, accounting for 5.66%.

Despite rising exports, China’s actual sales of bonded bunker fuel decreased amid tighter LSFO supply. Domestic refiners sold about 1.74 million mt of bonded bunker fuel in July, with the daily sales at 56,248 mt, a fall of 5.08% month on month, 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 January-July, China’s bonded bunker fuel exports totaled 11.36 million mt, a cut of 5.58% from the corresponding months in 2023. Heavy bunker fuel exports amounted to 10.71 million mt in the seven months, accounting for 94.30% of the total, while light bunker fuel exports stood at 647,600 mt, accounting for 5.70%.

Domestic-trade heavy bunker fuel demand continues to slip in August

Domestic-trade heavy bunker fuel demand continued to slip in August, mainly due to tepid shipping demand.

Domestic-trade heavy bunker fuel demand settled at 360,000 mt in the month, down by 10,000 mt or 2.70% month on month, JLC’s data shows. Shipowners showed lower buying interest in bunker fuel as downstream transportation demand weakened.

At the same time, domestic-trade light bunker fuel demand stood at 150,000 mt, without change from the prior month. Fundamentals in the light bunker fuel market did not change much, with most shipowners still basing their purchases on rigid demand.

Bunker Fuel Supply

China’s bonded bunker imports soar in July

China’s bonded bunker fuel imports soared in July, as HSFO demand grew rapidly.

The country imported 458,900 mt of bonded bunker fuel in the month, skyrocketing by 26.94% from the prior month and 37.39% from a year earlier, JLC estimated, with reference to data from the GACC.

Bonded distributors increased their HSFO imports, but they cut their MGO imports and did not import any LSFO in the month. Due to a decline in the economic efficiency of LSFO, some distributors basically suspended LSFO bunkering and shifted their focus to HSFO bunkering.

Malaysia was still the largest bonded bunker fuel supplier to China, with 257,800 mt, accounting for 56.19% of China’s total imports. Iraq remained in the second place with 154,000 mt, accounting for 33.57%, followed by South Korea with 43,500 mt, accounting for 9.48%. Singapore slipped to the fourth place with only 3,500 mt, which made up 0.76%.

China imported roughly 2.44 million mt of bonded bunker fuel in the first seven months of this year, a boost of 11.40% from the same months in 2023, speeding up from a rise of 6.72% in January-June.

Domestic-trade heavy bunker fuel supply stabilizes in August

Domestic-trade heavy bunker fuel supply stabilized in August, as blenders maintained largely stable production. Chinese blenders supplied about 380,000 mt of heavy bunker fuel in the month, unchanged from July, with most cargoes supplied for previous orders, JLC’s data shows.

Domestic-trade MGO supply climbed to 170,000 mt in the month, a boost of 20,000 mt or 13.33% from a month earlier, the data shows. Domestic-trade light bunker fuel supply increased as some refineries raised their operating rates.

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.

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 Fuel Market Monthly Report (July 2024)
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 September, 2024