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

China’s bonded bunker fuel sales plunge in October

China’s bonded bunker fuel sales plunged in October, due to lingering tightness of LSFO supply and the bad weather at certain ports.

The country sold about 1.45 million mt of bonded bunker fuel in the month, which was the lowest level since February 2022, JLC’s data shows. The daily sales settled at 46,881 mt in October, tumbling by 15.28% month on month.

Bonded bunker fuel sales by Chimbusco, Sinopec (Zhoushan), SinoBunker and China Changjiang Bunker (Sinopec) stood at 410,000 mt, 530,000 mt, 40,000 mt and 25,000 mt in the month, while those by suppliers with regional bunkering licenses settled at 448,300 mt, the data indicates.

China’s bonded bunker exports surge in September, but sales decline

China’s bonded bunker fuel exports surged in September, because of brisker re-export trade, but its actual sales declined amid tighter domestic supply.

The country exported about 2.18 million mt of bonded bunker fuel in the month, with the daily exports at 72,790 mt, up by 45.60% month on month and 37.82% year on year, JLC estimated, with reference to data from the General Administration of Customs of PRC (GACC).

Specifically, heavy bunker fuel exports totalled 1.90 million mt, accounting for 87.19% of the country’s total, while light bunker fuel exports increased to 279,800 mt, accounting for 12.81%.

Though bonded bunker fuel exports jumped amid more re-export trade activities, the actual sales descended as domestic refiners cut their LSFO production and port operation in East China was dampened by typhoons.

Chinese refiners produced about 993,000 mt of LSFO in the month, with the daily output at 33,100 mt, a slump of 11.16% from August and 15.13% from a year earlier, JLC’s data shows.

China issued this year’s third batch of quotas on LSFO exports in September, which was also expected to be the last batch for 2024, permitting only 1.0 million mt of exports, bringing this year’s total quotas to 13 million mt, down from 13.17 million for 2023 (the country issued quotas on 14 million mt for 2023, but some quotas were later converted to clean oil products).

China’s bonded bunker fuel exports totalled 15.09 million mt in the first nine months of this year, with the daily exports at 55,078 mt, sliding by 1.36% from the same period of time in 2023. Heavy bunker fuel exports came in at 14.08 million mt in January-September, accounting for 93.28%, while light bunker fuel exports stood at 1.01 million mt, making up 6.72%.

Domestic-trade heavy bunker fuel demand shrinks in October

Domestic-trade heavy bunker fuel demand shrank in October, because of multiple factors.

Domestic-trade heavy bunker fuel demand settled at 360,000 mt in the month, a decline of 30,000 mt or 7.69% month on month, JLC’s data shows. Most shipowners reduced purchases in early October, as they preferred to consume stockpiles during the National Day holiday. Operating ships decreased in mid-to-late October amid strong typhoons in southern China, and some ports’ bunkering business was hindered by the bad weather.

Domestic-trade light bunker fuel demand came in at 130,000 mt in the month, a loss of 10,000 mt or 7.14% from the previous month. Trade in the light bunker fuel market was limited, with shipowners still hesitant to make deals.

Bunker Fuel Supply

China’s bonded bunker fuel imports hit 22-month high in September

China’s bonded bunker fuel imports jumped significantly and set a 22-month high in September 2024, as domestic LSFO supply declined amid tight quotas.

The country imported 566,700 mt of bonded bunker fuel in the month, skyrocketing by 60.63% from the previous month and 45.38% from a year earlier, JLC estimated, with reference to data from the GACC. The imports hit the highest level since November 2022.

Bonded distributors imported more LSFO to meet demand when domestic refiners slashed their production amid lingering quota tightness. However, these distributors cut their high-sulphur fuel oil imports as their inventories remained relatively high. The imports of MGO were basically stable in September.

Malaysia still topped all suppliers by exporting 202,500 mt of bonded bunker fuel to China, which accounted for 35.73% of China’s total imports. Brazil came in second with 138,300 mt, accounting for 24.40%, followed by Singapore with 99,800 mt, making up 17.61%. Iraq and South Korea slipped to the fourth and fifth place with 85,200 mt and 40,900 mt, occupying 15.03% and 7.22% respectively.

China imported roughly 3.36 million mt of bonded bunker fuel in the first nine months, an upsurge of 16.39% from the corresponding months in 2023, speeding up from a rise of 11.86% in January-August.

China’s bonded bunker fuel imports are expected to hit a 23-month high in October, as domestic supply tightens amid quota shortages.

Chinese bonded bunker suppliers have imported more LSFO to meet demand lately, as Chinese refiners have cut their production amid shortage of quotas, according to market sources. By the end of September, Chinese oil refiners with LSFO export quotas (Sinopec, PetroChina, CNOOC, Sinochem and Zhejiang Petroleum and Chemical) had used 87.4% of their 2024 quotas, leaving quotas on only about 1.63 million mt for the last quarter, JLC’s data shows. This means they are likely to produce an average of roughly 545,000 mt of LSFO a month in the last quarter, versus a monthly average of about 1.26 million mt in January-September.

Domestic-trade bunker fuel supply tightens in October

Domestic-trade bunker fuel supply tightened in October, as cargo delivery was impeded by strict tax inspection, though the availability of blendstock increased.

Chinese blenders supplied about 370,000 mt of heavy bunker fuel in the month, a cut of 30,000 mt or 7.50% month on month, JLC’s data shows. At the same time, domestic-trade MGO supply slipped to 160,000 mt, down by 10,000 mt or 5.88% from a month earlier.

Bunker Prices, Profits

Editor
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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 (September 2024)
Related: JLC China Bunker Fuel Market Monthly Report (August 2024)
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: 13 November, 2024