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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.

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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.

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Screenshot 2023 05 18 at 5.09.50 AM

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.

Screenshot 2023 05 18 at 5.10.07 AM

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.

Screenshot 2023 05 18 at 5.10.29 AM

Bunker Prices, Profits

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Editor
Yvette Luo
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Sales (Beijing)
Tony Tang
+86-10-84428863
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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.

All rights reserved. No portion of this publication may be photocopied, reproduced, retransmitted, put into a computer system or otherwise redistributed without prior authorization from JLC.

Related: JLC China Bunker Market Monthly Report (March 2023)
Related: JLC China Bunker Market Monthly Report (February 2023)
Related: JLC China Bunker Market Monthly Report (January 2023)
Related: JLC China Bunker Market Monthly Report (December 2022)
Related: JLC China Bunker Market Monthly Report (November 2022)
Related: JLC China Bunker Market Monthly Report (October 2022)
Related: JLC China Bunker Market Monthly Report (September 2022)
Related: JLC China Bunker Market Monthly Report (August 2022)
Related: JLC China Bunker Market Monthly Report (July 2022)
Related: JLC China Bunker Market Monthly Report (June 2022)
Related: JLC China Bunker Market Monthly Report (May 2022)
Related: JLC China Bunker Market Monthly Report (April 2022)
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: 18 May, 2023

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LNG Bunkering

Singapore: Pavilion Energy supplies LNG to TFG Marine dual-fuel bunker tanker

“MT Diligence” was refuelled with 34 cubic metres of LNG bunker fuel, supplied by Pavilion Energy, marking the first LNG bunkering of TFG Marine’s bunker vessel.

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Singapore: Pavilion Energy supplies LNG to TFG Marine bunker tanker

Global marine fuel supply and procurement firm TFG Marine on Monday (20 May) announced the completion of the first liquefied natural gas (LNG) refuelling of its dual-fuel bunker tanker MT Diligence this week in Jurong Port, Singapore.

The 34 cubic metres (m3) of LNG to power the MT Diligence was supplied by the Marine division of Singapore-headquartered Pavilion Energy. 

“Deploying a vessel that can be powered by LNG as well as conventional low sulphur marine fuels helps TFG Marine to meet its licence requirement with the Maritime and Port Authority of Singapore (MPA),” TFG Marine said in a social media post.

Singapore: Pavilion Energy supplies LNG to TFG Marine dual-fuel bunker tanker

“Built and operated for TFG Marine by CBS Ventures Pte Ltd, the 5,000 dwt MT Diligence has been designed to our technical specifications, including stringent safety considerations and has joined our supply fleet this year in the major bunkering centre of Singapore.”

Manifold Times previously reported TFG Marine christening the first LNG dual-fuel bunker tanker to join its fleet.  

The newbuild vessel, MT Diligence, has joined the company's low sulphur fuel oil and biofuel supply operations in the major bunkering centre of Singapore.

Related: LNG dual-fuel bunker tanker “MT Diligence” joins TFG Marine fleet for Singapore ops

 

Photo credit: TFG Marine
Published: 21 May 2024

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Winding up

Singapore: Liquidators schedule final meeting for Sejahtera Shipping and related companies

Final meetings will be held at 9 Raffles Place, #19-21 Republic Plaza Tower 2, Singapore 048619 for Sejahtera Shipping, Molek Shipping and Madu Shipping.

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The final meetings of Sejahtera Shipping Pte Ltd and its related companies have been scheduled to take place on 21 June, according to the company’s liquidators on a notice posted on Monday (20 May) on the Government Gazette.

The other companies are Molek Shipping Pte Ltd and Madu Shipping Pte Ltd. 

The meetings will be held at 9 Raffles Place, #19-21 Republic Plaza Tower 2, Singapore 048619 at the following times:

  1. Sejahtera Shipping at 11am
  2. Molek Shipping at 10.30am
  3. Madu Shipping at 10am

They will be held for the purposes of having accounts laid before the meeting showing the manner in which the winding-up has been conducted and the property of the company disposed of, and of hearing any explanation that may be given by the liquidator.

The details of the liquidators are as follows:

Cheng Sam Tai Catherine
Liquidator
c/o Crowe Horwath First Trust Corporate Advisory Pte. Ltd.
9 Raffles Place, #19-20 Republic Plaza Tower 2, Singapore 048619

A member entitled to attend and vote at the meeting is entitled to appoint a proxy to attend and vote in his stead. A proxy need not be a member of the company. The instrument appointing a proxy must be deposited at the Registered Office of the company not less than 48 hours before the time set for holding the meeting.

Related: Singapore: Sejahtera Shipping and related companies to be wound up voluntarily

 

Photo credit: Benjamin-child
Published: 21 May 2024

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Bunker Fuel

Island Oil eyes Korean market with new Seoul office

New office marked the company’s latest expansion within Far East and Southeast Asia markets, following the opening of the company’s Hong Kong office last year.

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TANIM MUNSHI on Unsplash

International marine fuel trading firm Island Oil on Monday (20 May) announced it has established an office in Seoul.

This marked the company’s latest expansion within the Far East and Southeast Asia markets, following the opening of the company’s Hong Kong office last year. 

Additionally, Island Oil has several years of established presence in Singapore, along with a representative office in Shanghai. 

Mr. Yongje (Jayden) Choi will be heading the Seoul office as Business Development Manager. 

Jayden

Mr. Yongje (Jayden) Choi

“We welcome Jayden to the Island Oil family”, said Mr. Michell Kamphorst, Head of International Trading, Asia at Island Oil.  

“His expertise in the Korean market will provide an immediate impact as we inaugurate our Seoul office, marking another significant milestone in our Asia expansion.”

“Stepping into Island Oil, I am impressed by their dedication to maintaining a culture of dignity and respect for all team members, as well as their strong commitment to fairness and transparent communication”, said Choi.

“I am excited to be a part of Island Oil's journey towards greater growth and prosperity”, he concluded.

Note: Enquiries can be sent to Island Oil’s Seoul office via email at [email protected]

Related: Island Oil continues expansion into Chinese markets with new Hong Kong trading office
Related: Island Oil and Island Petroleum receive ISCC EU certification for bio bunker fuels

 

Photo credit: TANIM MUNSHI on Unsplash / Island Oil
Published: 21 May 2024

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