Beijing-based commodity market information provider JLC Network Technology Co. recently shared its JLC China Bunker monthly report for April 2022 with Manifold Times through an exclusive arrangement:
Bunker Fuel Demand
Bonded bunker fuel sales largely stable in April
China’s bonded bunker fuel sales were largely stable when compared with a month before, as the overall demand in the country didn’t change much. China’s bonded bunker fuel sales settled at around 1.60 mln mt in the month, little changed from the previous month, JLC’s data showed.
Chimbusco and Sinopec sold about 620,000 mt and 695,000 mt of bonded bunker fuel in April, JLC’s data shows. Bonded bunker fuel sales for SinoBunker and China ChangJiang Bunker (Sinopec) were 70,000 mt and 40,000 mt respectively. Suppliers with the local license recorded 179,600 mt of sales.
The bonded bunker fuel markets showed different performance in April. The sales of bonded bunker fuel plunged at Shanghai port and surrounding areas, because of the lockdown in Shanghai. However, some other ports, like those in Qingdao and Shenzhen, recorded varying degrees of demand growth in the month. Therefore, from a comprehensive perspective, the total amount of sales didn’t change a lot in April 2022.
China tallied a total of 1.50 mln mt of bonded bunker fuel exports in March 2022, rising 8.6% month on month, the GAC data shows.
The country exported 1.42 mln mt of heavy bunker fuel and 77,500 mt of light MGO in March 2022, accounting for 94.82% and 5.18% respectively.
Bonded bunker sales for state-owned enterprises reached 1.33 mln mt in the month, accounting for 88.93%. Specifically, bonded bunker fuel sales were 626,400 mt for Sinopec, 597,300 mt for Chimbusco, 66,900 mt for SinoBunker and 40,000 mt for China ChangJiang Bunker (Sinopec). Sales for regional enterprises were 165,600 mt, accounting for 11.07%.
Domestic bunker fuel demand extends drops in April
Domestic bunker fuel demand continued to drop in April as terminal acceptance to the high prices was limited, though rigid demand and an earlier rise in crude prices brought some support. The demand for domestic-trade heavy bunker fuel was about 280,000 mt in the month, down 20,000 mt or 6.67% month on month. Meanwhile, the demand for light bunker fuel decreased to 100,000 mt, plunging 20,000 mt or 16.67% from a month before, as the inland bunkering market in East China almost stagnated under the influence of the epidemic.
Domestic bunker fuel demand remained subdued amid excessively high prices and more cases of infections in some cities, despite small orders ahead of the May Day holiday in the country, which were almost all for replenishment and rigid demand.
Bunker Fuel Supply
Bonded bunker fuel imports plunge in March
China’s bonded bunker fuel imports plunged in March 2022, due to the high costs. The country recorded about 393,800 mt of bonded bunker fuel in March, a slump of 21% month on month and 59.6% year on year, GAC data showed.
The prices of bonded low-sulfur bunker fuel imports stayed high in March, forcing the traders to give priority to domestic resources. In addition, the traders also reduced their demand for imported high-sulfur fuel amid high freight rates.
Singapore climbed to the top among those suppliers by exporting 142,900 mt of bonded bunker fuel to China, accounting for about 36% of the total imports. Malaysia ranked second with 120,500 mt of imports from the country, accounting for about 31%. The followings were South Korea and Japan, with 58,000 mt from South Korea and 41,400 mt from Japan, accounting for 15% and 10% respectively.
Besides, there were some other imports from Russia, accounting for 8% of the total.
Domestic blended bunker fuel supply down in April
Chinese blending producers supplied a total of about 270,000 mt of heavy bunker fuel in April 2022, dropping 20,000 mt or 6.9% from March 2022, JLC’s data showed. Domestic marine gasoil (MGO) supply was about 110,000 mt in April, down 10,000 mt or 8.33% from the previous month.
The overall supply of blendstocks was obviously short, leading the blending volume to drop further in the month. Besides, the epidemic, which had made great impact on the blending market in Northeast and East China, continued to drag down the blending volume.
Specifically, low-sulfur asphalt supply was reduced significantly when several state-run refiners started maintenance. The prices of shale oil and light coal tar remained high, so the blenders just purchased them on rigid demand. What’s more, the supply of coal-based diesel also dived as coking margins retreated due to the fading production enthusiasm coupled with the restrictions on transportation.
Bunker Prices, Profits
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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 Market Monthly Report (March 2022)
Related: JLC China Bunker Market Monthly Report (February 2022)
Related: JLC China Bunker Market Monthly Report (January 2022)
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 that period is available here.
Photo credit: JLC Network Technology
Published: 19 May, 2022
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