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JLC China Bunker Market Monthly Report (August 2022)

China’s bonded bunker fuel sales continued to rise in August as bonded bunker fuel demand improved and supply from Zhoushan and Shanghai grew, JLC data showed.

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Beijing-based commodity market information provider JLC Network Technology Co. recently shared its JLC China Bunker monthly report for August 2022 with Manifold Times through an exclusive arrangement:

Bunker Fuel Demand

Bonded bunker fuel sales rise on more demand in Aug

China’s bonded bunker fuel sales continued to rise in August, as bonded bunker fuel demand improved and the supply from Zhoushan and Shanghai grew when local spread of the virus slowed down. 

The country’s bonded bunker fuel sales climbed to around 1.80 mln mt in the month, up by 7.14% from a month earlier, JLC’s data shows. In detail, Chimbusco and Sinopec Zhoushan sold about 670,000 mt and 745,000 mt of bonded bunker fuel in August, JLC’s data indicates. Bonded bunker fuel sales by SinoBunker and China ChangJiang Bunker (Sinopec) were about 80,000 mt and 60,000 mt, respectively. About 245,000mt of bonded bunker fuel sales were made by suppliers who held local licenses, with PetroChina Zhoushantaking 110,800 mt. 

China saw higher monthly growth in bonded bunker fuel exports in July, as the country continued to ramp upits production of low-sulfur fuel oil (LSFO, with the maximum sulfur content at 0.5%) amid new quota and substantial margins. 

China recorded approximately 1.69 million mt of bonded bunker fuel exports in July 2022, jumping 12.06% month on month, according to data from the General Administration of Customs of PRC (GACC). 

The exports of heavy bunker fuel and light marine gas oil were about 1.60 million mt and 99,900 mt in the month, respectively occupying 94.1% and 5.9% of the total. 

State-owned enterprises exported roughly 1.45 million mt of bonded bunker fuel over the month, making up 85.44%, while the exports by local independent enterprises rose to 246,700 mt, accounting for 14.56%. 

On a year-on-year comparison, however, the bonded bunker fuel exports declined by 9.44%in July, GACC data indicates. The drop came as supply tightened after China’s imports of bonded bunker fuel plunged amid high costs and the bonded bunker fuel market was still depressed by the epidemic.

JLC China Bunker Market Monthly Report (August 2022)
JLC China Bunker Market Monthly Report (August 2022)

Domestic bunker fuel demand stabilizes in August

Domestic-trade heavy bunker fuel demand stabilized at 400,000 mt in August, as the consumption in the shipping market was relatively steady. The majority of market participants stood on the fence when bunker fuel prices remained high, resulting in light trading and limited new contracts. On the other hand, the demand for light bunker fuel ascended by 10,000 mt or 6.67% to roughly 160,000 mt in the month. Despite downward pressure from high temperatures and rising diesel prices, the demand for light bunker fuel was still supported by rigid demand. 

Bunker Fuel Supply

China records steep fall in bonded bunker fuel imports

China’s bonded bunker fuel imports sharply slumped in July, amid a surge in the output of low-sulfur fuel oil (LSFO) and a decline in domestic bunker fuel prices. 

The country imported about 352,600 mt of bonded bunker fuel in July 2022, a plunge of 31.85% month on month and 21.24% year on year, according to the data from the General Administration of Customs of PRC(GACC). 

Encouraged by the release of this year’s third batch of LSFO export quota and still good margins, Chinaramped up its production of LSFO during the month, relieving the ongoing supply tension to some extent. As a result, the country slashed its bonded bunker fuel imports when the booming production managed to meet more domestic demand.

In addition, China’s bunker fuel prices kept sliding over the month, making domestic bunker fuel prices more competitive. At the same time, certain market participants who were pessimistic about imported LSFO prices reduced their procurement of imported low-sulfur resources because they thought that prices would continue to dip in the short run. 

Despite a smaller share of the imports from Malaysia, the country still led all suppliers by exporting 83,400 mt of bonded bunker fuel to China, accounting for 24% of China’s total imports of bonded bunker fuel. Japan overtook the UAE and ranked second with the imports from it at 79,200 mt and accounting for 22%. The followings were Russia, South Korea and the UAE, with 77,900 mt from Russia, 69,000 mt fromSouth Korea and 42,100 mt from the UAE, accounting for 22%, 20% and 12% respectively. There were only 1,000 mt of bonded bunker fuel imports coming from Singapore in the month.

JLC China Bunker Market Monthly Report (August 2022)

Domestic blended bunker fuel supply creeps up in August

Domestic blended bunker fuel supply increased in August, as blending margins were relatively good in the month, underpinned by higher bunker fuel prices. 

Chinese blenders supplied a total of about 480,000 mt of heavy bunker fuel in August 2022, an uplift of 30,000 mt or 6.67% from a month earlier, JLC’s data shows.

In detail, the supply of low-sulfur asphalt, an important blendstock for heavy bunker fuel, increased in the month as blenders were keen to make purchases. However, the supply was inadequate in some regions, including Sichuan, due to the power rationing. The supply of shale oil also increased, while that of coal-based diesel and light coal tar tightened. 

Meanwhile, the supply of domestic marine gas oil (MGO) rallied to around 180,000 mt, up by 20,000 mt or 5.00% from July.

JLC China Bunker Market Monthly Report (August 2022)

Bunker Prices, Profits

JLC China Bunker Market Monthly Report (August 2022)
JLC China Bunker Market Monthly Report (August 2022)
JLC China Bunker Market Monthly Report (August 2022)

Editor
Yvette Luo
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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.

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 (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: 12 September, 2022

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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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