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
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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.

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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