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

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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
+86-10-84428863
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Sales (Singapore)
Ginny Teo
+65-31571254
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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.

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

Alternative Fuels

Argus Green Marine Fuels Asia eBook released ahead of February bunker conference

eBook features interviews with Microsoft, JERA, IBIA, Anglo American, Sumitomo Corporation, Hafnia, BHP, Global Maritime Forum, DS NORDEN, ADNOC Group, and Standard Chartered Bank.

Published

2 days ago

January 17, 2025

Admin

Argus Media organises Green Marine Fuels Asia Conference in Singapore

Independent global energy and commodity market intelligence provider Argus Media recently published an eBook as part of a prelude leading towards the Argus Green Marine Fuels Asia Conference on 18 to 19 February in Singapore.

The Pre-conference content: Argus marine fuels Asia eBook features exclusive industry interviews with Microsoft, JERA, IBIA, Anglo American, Sumitomo Corporation, Hafnia, BHP, Global Maritime Forum, DS NORDEN, ADNOC Group, and Standard Chartered Bank.

It offers a peek into their thoughts on infrastructure readiness, the marine fuels shipowners are gravitating towards, LNG decarbonisation pathways, collaboration across the marine fuels value chain, and more.

The eBook is available for download through the image below:

The Argus Green Marine Fuels Asia Conference will be held at PARKROYAL COLLECTION Marina Bay, 6 Raffles Boulevard, Singapore 039594 on 18 to 19 February in Singapore.

Key speakers for the event include Kenneth Lim, Assistant Chief Executive (Industry & Transformation), Maritime and Port Authority of Singapore (MPA); Torben Nørgaard, Chief Technology Officer - Energy & Fuels, Maersk Mc-Kinney Moller Center; Jerid Soo, Assistant General Manager (Global Sustainability and ESG), Pacific International Lines; Kazuki Yamaguchi, General Manager and Head, Maritime Energy Solution, Energy Transformation Business Group, Sumitomo Corporation; and Mahua Chakravarty, Editor, Marine Fuels (Asia), Argus.

Photo credit: Argus Media
Published: 17 January, 2024

Bunker Fuel

TFG Marine, OOMCO form bunker fuel joint venture to supply in Oman ports

TFG-OOMCO will deliver bunker fuels to vessels visiting Oman’s ports of Duqm, Muscat and Sohar and offer customers a reliable and transparent bunkering provider in the Arabian Gulf.

Published

2 days ago

January 17, 2025

Admin

TFG Marine, OOMCO form bunker fuel joint venture to supply in Oman ports

TFG Marine, the international marine fuel joint venture founded by Trafigura, Frontline and Golden Ocean on Thursday (16 January) said it has established a bunker fuel joint venture with Oman Oil Marketing Company (OOMCO) to supply vessels visiting Oman’s ports of Duqm, Muscat and Sohar.

TFG-OOMCO LLC, incorporated in Oman, will combine the local knowledge of OOMCO with the international footprint, sourcing of all grades of marine fuels, infrastructure and logistics capability of TFG Marine, to offer customers a reliable and transparent bunkering provider in the Arabian Gulf.

Tarik Al Junaidi, CEO of Oman Oil Marketing Company, said: “This partnership aligns with Oman Oil Marketing Company’s efforts to develop the maritime transport and shipping infrastructure in Oman, which is in alignment with the objectives Oman Vision 2040.”

“It underscores our commitment to meeting the increasing demand of compliant, high-quality marine grades of fuel while adhering to the highest international health, safety, and environmental standards.”

“Through our partnership with TFG Marine, the adoption of cutting-edge technologies and the implementation of global best practices in fuel bunkering, we strive to lead towards excellence and sustainability in the bunker fuel business in the Sultanate’s ports.”

Mark Russell, Chief Commercial Officer, TFG Marine, said: “This is TFG Marine’s first venture in the Middle East and we look forward to serving our customers in this region. Oman has a rich history as a maritime nation and is well located close to the main shipping routes connecting the Arabian Gulf and the Indian subcontinent with the rest of the world.”

The announcement follows the signing of an MOU agreement between SOHAR Port and Freezone and TFG Marine, to establish an international bunker fuel supply operation.

TFG Marine has already deployed bunker vessel Margherita Cosulich to the region to supply vessels at SOHAR’s deep-sea port. The vessel is fitted with a Mass Flow Meter (MFM), calibrated to the ISO 22192 international standard as required by SOHAR Port. SOHAR Port in February 2024 announced a mandate on the alignment of ISO 22192 standards ‘Bunkering of marine fuel using the Coriolis MFM system’ for all marine fuel supply operations within the port.

TFG Marine added it has long been an advocate of the global adoption of calibrated MFMs to bring much-needed transparency to bunkering and encouraging digitalisation in the long-term interests of the bunker industry and helping to further the decarbonisation goals of the shipping industry.

Photo credit: TFG Marine
Published: 17 January, 2025

Biofuel

Burando Energies delivers B30 bio bunker fuel to tug “MV Bylgia” in Rotterdam

Firm said it successfully delivered ISCC-certified B30 biofuel blend, derived from renewable feedstocks, to Heerema’s Anchor Handling Tug “MV Bylgia” at Port of Rotterdam.

Published

2 days ago

January 17, 2025

Admin

Burando Energies delivers B30 bio bunker fuel to tug “MV Bylgia” in Rotterdam

Burando Energies on Thursday (16 January) announced it successfully delivered ISCC-certified biofuel to Heerema’s Anchor Handling Tug MV Bylgia at the Port of Rotterdam.

The delivered B30 biofuel blend, derived from renewable feedstocks, will help reduce carbon emissions by an estimated 25% (well-to-wake)—an impactful move in Heerema’s ongoing commitment to sustainability.

“This delivery not only reflects our commitment to offering sustainable energy solutions but also strengthens our partnership with Heerema in their green ambitions,” said Duncan Huisman, Sustainable Bunker Trader at Burando Energies.

“We are proud to contribute to initiatives that prioritise the well-being of our planet and future generations.”

Burando Energies said it will continue to focus on innovation and sustainability, striving to provide energy solutions that drive both environmental progress and business success.

Photo credit: Burando Energies
Published: 17 January, 2025