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

China’s bonded bunker fuel sales rebound in June

China’s bonded bunker fuel sales rebounded in June, as enterprises offered some discounts to achieve sales targets for the first half of this year, also because of easing supervision of bunker barges in some regions and increasing barge capacity at some ports.

The country sold about 1.78 million mt of bonded bunker fuel in the month, with the daily sales jumping by 11.55% month on month to 59,260 mt, JLC’s data shows.

Bonded bunker fuel sales by Chimbusco, Sinopec (Zhoushan), SinoBunker and China Changjiang Bunker (Sinopec) rose to 510,000 mt, 640,000 mt, 65,000 mt and 40,000 mt, while those by suppliers with regional bunkering licenses climbed to 522,800 mt, the data indicates.

China’s daily bonded bunker fuel exports drop in May

China’s daily bonded bunker fuel exports dropped in May, because of still tepid bunkering demand, despite larger LSFO production.

The country exported about 1.74 million mt of bonded bunker fuel in the month, with the daily exports at 56,268 mt, slipping by 2.61% month on month, JLC estimated, with reference to data from the General Administration of Customs of PRC (GACC).

In breakdown, heavy bunker fuel exports amounted to 1.66 million mt in May, accounting for 95.18% of the country’s total exports. Meanwhile, light bunker fuel exports fell to 84,000 mt, accounting for 4.82%.

Dragging down the daily exports, bunkering demand was relatively weak and the barge capacity at Chinese ports remained tight amid lingering supervision of bunker barges.

On the other hand, Chinese refiners ramped up their LSFO production amid new export quotas, unit restarts and better margins, limiting the decline in the exports. These refiners produced about 1.31 million mt of LSFO in May, with the daily output at 42,268 mt, up 3.01% from April, JLC’s data indicates.

On a year-on-year comparison, China’s bonded bunker fuel exports descended by 10.06% in May.

In January-May, China tallied a total of 7.91 million mt of bonded bunker fuel exports, a drop of 5.46% from a year earlier, speeding up from a 4.07% decline in January-April. Specifically, heavy bunker fuel exports settled at 7.46 million mt in the five months, accounting for 94.25%, while light bunker fuel exports totaled 455,400 mt, occupying 5.75%.

Domestic-trade heavy bunker fuel demand goes lower in June

Domestic-trade heavy bunker fuel demand slipped to 380,000 mt in June, contracting by 10,000 mt or 2.56% month on month, JLC’s data shows. Though restocking demand recovered after the rainy season in South China, shipowners were cautious about purchases amid a surplus of ships and a decline in freight rates.

At the same time, domestic-trade light bunker fuel demand was estimated at 140,000 mt, without change from the previous month, the data indicates. Trade in light bunker fuel remained relatively brisk, as demand from power generation was seasonally strong.

Bunker Fuel Supply

China’s bonded bunker fuel imports fall again in May

China’s bonded bunker fuel imports fell again in May, as domestic HSFO inventory was still high and LSFO supply increased.

The country imported about 309,800 mt of bonded bunker fuel in the month, down by 9.15% from the previous month and 12.24% from a year earlier, JLC estimated, with reference to data from the GACC.

Bonded distributors in East China were still under high inventory pressure as downstream HSFO consumption continued to decelerate, and they further reduced their bonded HSFO imports. The barge capacity at local ports stayed relatively tight, depressed by lingering supervision of bunker barges.

China’s bonded LSFO imports also decreased, as domestic refiners boosted their LSFO production after the country released new quotas on LSFO exports in early May. China’s LSFO output amounted to 1.31 million mt in May, with the daily output at 42,268 mt, up by 3.01% month on month, JLC’s data shows.

China’s bonded MGO imports did not change much in May.

Malaysia overtook Singapore as the largest bonded bunker fuel supplier to China in May. Malaysia shipped 100,400 mt of bonded bunker fuel to China in the month, accounting for 32.41% of the latter’s total. Singapore and Russia slipped to the second and third place with 100,000 mt and 67,200 mt, accounting for 32.29% and 21.69% respectively. South Korea came fourth with 42,200 mt, making up 13.61%.

In the first five months, China imported a total of 1.62 million mt of bonded bunker fuel, growing by 15.46% from the same months in 2023, slowing down from a leap of 24.80% in January-April.

Domestic-trade heavy bunker fuel supply declines further

Domestic-trade bunker fuel supply declined further in June, as the availability of low-sulfur residual oil decreased and downstream shipping demand was still sluggish. Chinese blenders supplied about 400,000 mt of heavy bunker fuel in the month, a cut of 10,000 mt or 2.44% from a month earlier, JLC’s data shows.

On the flip side, domestic-trade MGO supply came in at 160,000 mt in the month, an increase of 10,000 mt or 6.67% month on month, the data shows. Refineries’ enthusiasm for MGO production was slightly boosted by stronger diesel prices.

Bunker Prices, Profits

Editor
Yvette Luo
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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 (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: 11 July, 2024