Beijing-based commodity market information provider JLC Network Technology Co. recently shared its JLC China Bunker monthly report for April 2024 with Manifold Times through an exclusive arrangement:

Bunker Fuel Demand

China’s bonded bunker fuel sales drop in April

China saw a drop in its bonded bunker fuel sales in April, because of lower production and a severe shortage of barge capacity at ports.

The country sold about 1.63 million mt of bonded bunker fuel in the month, with the daily sales down by 7.48% month on month to 54,270 mt, JLC’s data shows.

Bonded bunker fuel sales by Chimbusco and Sinopec (Zhoushan) respectively dropped to 490,000 mt and 580,000 mt in April, while those by suppliers with regional bunkering licenses fell to 468,100 mt. At the same time, SinoBunker and China Changjiang Bunker (Sinopec) settled at 6,000 mt and 3,000 mt, without change from March, the data shows.

China’s LSFO supply tightened in April when refineries’ unit maintenance peaked, leading to a fall in the country’s bonded bunker fuel sales. Meanwhile, Chinese customs strengthened the supervision of bunker barges, dampening ports’ bunkering business to some extent.

China’s bonded bunker fuel exports grow in March

China’s bonded bunker fuel exports grew in March, as domestic refiners boosted low-sulfur fuel oil (LSFO) production and relatively low LSFO prices attracted more shipowners.

The country exported 1.41 million mt of bonded bunker fuel in the month, climbing by 13.38% from a month earlier, with the daily exports up 6.06% to 45,555 mt, JLC estimated, with reference to data from the General Administration of Customs of the PRC (GACC).

Heavy bunker fuel exports amounted to about 1.32 million mt, accounting for 93.13% of the country’s total, while light bunker fuel exports settled at 97,000 mt, accounting for 6.87%.

Chinese refiners expanded their bonded bunker fuel exports when domestic supply increased amid larger LSFO production. China’s LSFO output rose to about 1.40 million mt in March, with the daily output growing by 5.41% month on month to 45,000 mt, JLC’s data shows.

Meanwhile, LSFO prices at Chinese ports were more competitive than those in Singapore and neighbouring regions, attracting more shipowners to refuel in China, especially in Shanghai and Zhoushan.

However, on a year-on-year comparison, China’s bonded bunker fuel exports plunged by 31.70% in March.

In the first three months of this year, China’s bonded bunker fuel exports totaled 4.44 million mt, a fall of 11.27% from the same months in 2023. Heavy bunker fuel exports settled at 4.16 million mt in the period, accounting for 93.81%, while light bunker fuel exports settled at 274,500 mt, accounting for 6.19%.

Domestic-trade bunker fuel demand shrinks in April

Domestic-trade bunker fuel demand shrank in April, as shipowners were still hesitant to make deals and new orders were limited when terminal demand for cargo transportation stayed relatively weak.

Domestic-trade heavy bunker fuel demand came in at 420,000 mt in the month, down by 10,000 mt or 2.33% month on month, JLC’s data indicates.

In the meantime, domestic-trade light bunker fuel demand was 130,000 mt, down by 10,000 mt or 7.14% from a month earlier. Shipowners with a wait-and-see attitude just based purchases on rigid demand.

Bunker Fuel Supply

China’s bonded bunker fuel imports extend surges in March

China’s bonded bunker fuel imports extended surges in March, as freight rates for imported cargoes decreased and high-sulfur fuel oil (HSFO) demand from Zhoushan grew.

The country imported about 383,300 mt of bonded bunker fuel in the month, surging by 72.11% from the previous month and 118.28% from a year earlier, JLC estimated, with reference to data from the General Administration of Customs of PRC (GACC).

HSFO demand from Zhoushan Port was growing amid the expansion of its high-sulfur bunkering business, coupled with a decline in freight rates for imported cargoes, pushing up China’s bonded HSFO imports.

China did not import any bonded low-sulfur fuel oil (LSFO) as the economic efficiency for import was still relatively low. Delivered-to-vessel prices and premiums of LSFO at the ports in East China dropped, as domestic LSFO supply increased on larger production.

Malaysia surpassed Russia to become the largest supplier in March, exporting 179,600 mt of bonded bunker fuel to China which accounted for 46.85% of China’s total imports. Russia slipped to the second place with 162,600 mt, accounting for 42.43%, followed by South Korea with 41,100 mt, accounting for 10.72%.

China’s bonded bunker fuel imports totaled about 965,200 mt in the first quarter of this year, a dramatic rise of 52.60% from the same quarter in 2023.

Domestic-trade heavy bunker fuel supply tightens in April

Domestic-trade heavy bunker fuel supply tightened in April, as blenders’ blending interest was limited by decreasing availability of low-sulfur residual oil and the cargo delivery was not smooth.

Chinese blenders supplied about 430,000 mt of heavy bunker fuel in the month, a loss of 30,000 mt or 6.52% from March, JLC’s data shows.

At the same time, domestic-trade MGO supply was estimated at 160,000 mt, stable month on month, the data shows. Refineries’ enthusiasm for MGO production was relatively fair in April.

Bunker Prices,Profits

Editor
Yvette Luo
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Sales (Beijing)
Tony Tang
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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 2024)
Related: JLC China Bunker Fuel Market Monthly Report (February 2024)
Related: JLC China Bunker Market Monthly Report (January 2024)

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 earlier periods are available here.

Photo credit: JLC Network Technology
Published: 13 May 2024