Business

JLC China Bunker Market Monthly Report (April 2023)

Country sold about 1.50 million mt of bonded bunker fuel in the month, down by 86,300 mt or 5.43% from March, JLC’s data shows; fall in sales mainly due to decline in domestic supply.

Published

2 years ago

May 17, 2023

Admin

Beijing-based commodity market information provider JLC Network Technology Co. recently shared its JLC China Bunker monthly report for April 2023 with Manifold Times through an exclusive arrangement:

Bunker Fuel Demand

China’s bonded bunker fuel sales fall in April

China’s bonded bunker fuel sales fell in April, mainly due to a decline in domestic supply. The country sold about 1.50 million mt of bonded bunker fuel in the month, down by 86,300 mt or 5.43% from March, JLC’s data shows.

Specifically, the sales by Chimbusco and China ChangJiang Bunker (Sinopec) decreased to 520,000 mt and36,000 mt, down from 610,000 mt and 40,000 mt in the previous month respectively, while those by Sinopec Zhoushan increased to 550,000 mt, up from 530,000 mt. At the same time, SinoBunker sold 70,000 mt of bonded bunker fuel, stable month on month. Suppliers with regional bunkering licenses sold 327,700 mt, versus 340,000 mt in March.

Chinese refiners slashed their low-sulfur fuel oil (LSFO) output and maintained relatively low bonded bunker fuel imports in the month, leading to an intermittent disruption of bonded bunker fuel supply at certain domestic ports. However, some refiners raised high-sulfur fuel oil (HSFO) production when low-sulfur blendstocks were in short supply, which gave a boost to HSFO sales.

China’s bonded bunker fuel exports hit 14-month high in Mar

China’s bonded bunker fuel exports jumped to a 14-month high in March 2023 as domestic demand was still slow to recover, also because of relatively good export margins.

The country tallied about 2.07 million mt of bonded bunker fuel exports in the month, a sharp surge of 38.18% year on year, reversing a yearly plunge of 23.64% in January-February, JLC estimated, with reference to data from the General Administration of Customs of PRC (GACC).

On a month-on-month comparison, the exports grew by 28.23%.

Among these exports were 1.95 million mt of heavy bunker fuel and 114,000 mt of light bunker fuel, which accounted for 94.49% and 5.51% of the total.

Suppliers with national and regional bunkering licenses exported roughly 1.73 million mt and 340,000 mt of bonded bunker fuel, making up 83.56% and 16.44% respectively.

Though domestic bunker fuel demand was still relatively soft, certain refiners ramped up their LSFO production year on year in March, motivated by abundant export quotas and higher output targets. China produced about 1.34 million mt of LSFO in the month, a rise of 5.27% from a year earlier, JLC’s data shows.

In the first quarter of this year, the country exported approximately 5.00 million mt of bonded bunker fuel, a decline of 6.31% from the same quarter of 2022. Specifically, heavy bunker fuel exports totaled 4.75 million mt in the three months, accounting for 94.89%, and marine gas oil (MGO) exports amounted to 255,500 mt, occupying 5.11%.

Regarding the exports by supplier, enterprises with national licenses exported 4.13 million mt in the quarter, taking 82.67% and those with regional ones exported 866,600 mt, accounting for 17.33%. Sinopec Fuel Oil and Chimbusco were still the main suppliers in this period.

Domestic heavy bunker fuel demand contracts in April

Domestic-trade heavy bunker fuel demand contracted in April, as buyers expected bunker fuel prices to slipfurther amid a surplus of available ships. Domestic-trade heavy bunker fuel demand shrank to 330,000 mt in the month, down by 30,000 mt or 8.33%month on month.Although traders cut their bunker fuel prices to boost sales, downstream buyers still showedlow buying interest.

In contrast, domestic-trade light bunker fuel demand rose to about 140,000 mt, up by 5,000 mt or 3.70% from the previous month. Domestic-trade light bunker fuel consumption increased when marine gas oil prices remained on a downswing, but the increase was limited by bearish sentiment.

Bunker Fuel Supply

China records another low in bonded bunker fuel imports in Mar

China saw another record low in its bonded bunker fuel imports in March, as domestic bunkering demand stayed relatively soft and import costs were exorbitant. The country imported 175,600 mt of bonded bunker fuel in the month, a significant cutback of 26.62% month on month and 55.41% year on year, JLC estimated, with reference to data from the GeneralAdministration of Customs of PRC (GACC).

South Korea leaped to the top among all suppliers by exporting 109,600 mt of bonded bunker fuel to China, which accounted for about 62.44% of the latter’s total. Singapore came second with 61,900 mt, accounting for 35.23%, followed by Malaysia with 4,100 mt, making up 2.33%.

Chinese distributors still prioritized domestic low-sulfur bonded bunker resources when domestic bunker fuel prices were more competitive than imported ones. Meanwhile, excessive import costs continued to put pressure on importers, as freight rates for imported shipments remained high.

China’s bonded bunker fuel imports amounted to 632,500 mt in January-March, halving from 1.27 million mt in the same period of time in 2022, JLC estimated, based on data from GACC.

Buyers slashed their bonded bunker fuel imports in the first quarter of this year, because of tepid domestic demand and an increase in domestic low-sulfur fuel oil (LSFO) production. China produced roughly 3.80million mt of LSFO in the three months, up from 3.56 million mt in the same quarter of 2022, JLC’s data shows.

Domestic heavy bunker fuel supply tightens in April

Domestic-trade heavy bunker fuel supply tightened in April, as blenders cut production slightly when blend stocks were overpriced and end demand stayed relatively weak. Chinese blenders supplied about 350,000 mt of heavy bunker fuel in April, a cutback of 25,000 mt or 6.67% month on month, JLC’s data shows.

On the contrary, blenders supplied about 150,000 mt of marine gas oil (MGO) in the month, an increase of 10,000 mt or 7.14% from March, the data indicates.

Bunker Prices, Profits

Editor
Yvette Luo
+86-020-38834382
[email protected]

Sales (Beijing)
Tony Tang
+86-10-84428863
[email protected]

Sales (Singapore)
Ginny Teo
+65-31571254
[email protected]
[email protected]

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.

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: 18 May, 2023

Biofuel

Ulsan Port aims to become leading bio bunker fuel supply hub in Northeast Asia

UPA’s Director Byeong-gu Kim unveiled comprehensive plans to promote marine biofuel adoption centered on Ulsan Port at 2nd Forum on the Commercialization of Biofuels for Maritime Vessels in Seoul.

Published

12 hours ago

April 25, 2025

Admin

Ulsan Port aims to become leading bio bunker fuel supply hub in Northeast Asia

Ulsan Port Authority (UPA) on Thursday (24 April) said it is looking to position the port as a leading biofuel supply hub in Northeast Asia.

UPA, Korea’s port operator for energy and petrochemical logistics, emphasised its strategic role in building a stable marine biofuel supply chain aligned with tightening global regulations.

UPA's Director Byeong-gu Kim unveiled comprehensive plans to promote marine biofuel adoption centered on Ulsan Port at a recent biofuel forum in Seoul, highlighting the port's strategic advantages including its world-class petrochemical infrastructure, extensive storage facilities, and specialised handling expertise.

The presentation showcased UPA's commitment to developing the necessary facilities and operational frameworks to become Northeast Asia's “premier biofuel bunkering destination”.

“As IMO environmental regulations intensify, Ulsan Port Authority is strategically positioned to lead the transition to alternative fuels,” stated UPA President Jae-young Byeon.

“Marine biofuels represent a practical alternative that can be implemented immediately without requiring new vessel construction or retrofitting. UPA will continue to strengthen port-centered biofuel supply networks and create a competitive eco-friendly marine fuel market through our advanced infrastructure and technical expertise.”

Chief Executive of the Korea Maritime Cooperation Center (KMC), Hong Sun-bae, emphasised that “the strategic partnership between the shipping industry and the logistics sector has become more important than ever in this era of climate-friendly economic transition.”

The 2nd Forum on the Commercialisation of Biofuels for Maritime Vessels, hosted by the Ministry of Oceans and Fisheries and co-organized by UPA and KMC, drew around 300 key stakeholders from across the shipping, energy, terminal, shipbuilding, and finance sectors.

The event underscored the increasing urgency of eco-friendly fuel adoption, following the International Maritime Organization (IMO)'s approval of mid-term greenhouse gas reduction measures.

Expert sessions featured actionable insights and market intelligence from key players in the maritime and energy sectors:

Key outcomes from the 83rd Marine Environment Protection Committee (MEPC83) by Team Leader Dae-jung Hwang of KMC
Biofuel utilisation and demonstration cases by Manager Dae-sik Seo of HMM
Current usage status and challenges of B100 biofuel by Manager Min-guk Jang of G-Marine Service
Market outlook for marine biofuels by Chief Surveyor Jae-hoon Lim of DNV
Case studies of biofuel applications for marine engines by Team Leader Jae-yup Seo of HD Korea Shipbuilding & Offshore Engineering
Global marine biofuel market trends and bunkering developments by Senior Manager Yul-kyung Hong of Hyundai Fuels

Photo credit: Ulsan Port Authority
Published: 25 April, 2025

Shipping Corridor

SFOC report proposes green methanol-fuelled Korea-Europe shipping corridor

Corridor will run between Pyeongtaek Port—the largest hub for automobile imports and exports in South Korea—and major European ports of Bremerhaven, Antwerp, Zeebrugge, and Southampton.

Published

12 hours ago

April 25, 2025

Admin

SFOC report proposes green methanol-fuelled Korea-Europe green shipping corridor

Korean non-government organisation Solutions for Our Climate (SFOC) on Wednesday (23 April) released a report proposing the establishment of a green methanol-fuelled South Korea-Europe shipping corridor.

The proposed corridor will run between Pyeongtaek Port—the largest hub for automobile imports and exports in South Korea—and major European ports of Bremerhaven, Antwerp, Zeebrugge, and Southampton, presenting strategic pathways for the decarbonization of the maritime sector.

South Korea has announced its “Greenship-K Program” to accelerate the adoption of eco-friendly vessels and set a national goal to achieve a 100% reduction in greenhouse gas (GHG) emissions from shipping by 2050.

Focusing on a green methanol-fuelled Pure Car and Truck Carrier (PCTC) operation model, the report quantitatively assessed the potential for greenhouse gas reduction along key routes. Notably, the Bremerhaven–Pyeongtaek route alone is estimated to reduce more than 1.4 million tonnes of CO₂ emissions annually, given its high cargo volume.

The report proposed the adoption of green methanol as the primary fuel for the corridor, with a long-term goal to transition toward e-methanol. This shift is expected to reduce CO₂ emissions by more than 70% compared to conventional fossil fuel use.

Beyond fuel switching, the report emphasised the importance of securing a stable green fuel supply chain, establishing supportive legal and institutional frameworks, and fostering close public-private cooperation among shipping companies, cargo owners, port operators, and fuel suppliers to make the corridor a viable reality.

“With these foundational elements in place, Pyeongtaek Port is well positioned to become the starting point of Korea’s transition toward a decarbonised maritime sector,” SFOC said.

Note: The full report by SFOC can be viewed here and it is also available in Korean here.

Photo credit: Solutions for Our Climate
Published: 25 April, 2025

Biofuel

MASH Makes powers first vessel trial with bio bunker fuel from carbon-negative process

NORDEN and MASH Make completed the world’s first commercial vessel trial using B20 blend produced from a carbon-negative process; vessel operated on a roundtrip voyage from Singapore to Brazil.

Published

12 hours ago

April 25, 2025

Admin

MASH Makes powers first vessel trial with bio bunker fuel from carbon-negative process

Global shipping company DS NORDEN and renewable energy company MASH Makes on Thursday (21 April) successfully completed the world’s first commercial vessel trial using biofuel produced from a carbon-negative process.

The vessel operated on a roundtrip voyage from Singapore to Brazil, successfully using 65 tonnes of fuel blend with 20% MASH Makes biofuel in its auxiliary engine.

“This trial proves that MASH Makes’ biofuel is suitable for marine engines, and it marks an important milestone towards bringing the fuel into our operation,” said Henrik Røjel, Head of Decarbonisation and Climate Solutions, NORDEN.

The trial demonstrated that MASH Makes’ biofuel is technically a drop-in fuel, compatible with existing systems and capable of reducing reliance on fossil fuels in specific marine applications.

The results point to a practical path for shipowners to cut emissions without waiting for new infrastructure.

If the new agreement by the International Maritime Organization (IMO) to cap and price excess emissions globally is ratified in October 2025, MASH Makes offers a solution that enables shipowners to start significantly reducing their emissions well before the agreement takes effect in 2028.

“Our biofuel meets the technical requirements of the shipping industry and can be used in unmodified engines. It’s a seamless, scalable alternative ready to cut emissions today,” said MASH Makes CEO Jakob Bejbro Andersen.

Unlike emerging fuels like green hydrogen or ammonia, which require new infrastructure, MASH Makes biofuel integrates directly with existing systems.

NORDEN acquired a minority stake in MASH Makes in 2023 to strengthen its future supply of renewable fuels. Since the acquisition, the two companies have worked closely together to validate the biofuel for marine usage.

Photo credit: DS NORDEN
Published: 25 April, 2025