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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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FuelEU

FincoEnergies launches pooling service for FuelEU Maritime compliance

FuelEU Pooling service enables undercompliant vessels to meet their compliance targets by pooling with vessels running on GoodFuels sustainable bio bunker fuels.

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GoodFuels biofuel supplier FincoEnergies on Wednesday (16 April) announced the launch of its FuelEU Pooling service, created to enable shipowners to meet FuelEU Maritime compliance in a cost-effective way.

FuelEU Maritime, effective from 1 January 2025, mandates the reduction of greenhouse gas intensity of energy used on board ships trading in the EU. For many operators, particularly those with limited access to low-carbon fuels, compliance can be both complex and costly.

Designed for shipowners, operators, charterers, and technical managers, FincoEnergies’ FuelEU Pooling service enables undercompliant vessels to meet their compliance targets by pooling with vessels running on GoodFuels sustainable biofuels, when these vessels are overcompliant and have ‘Surplus’ emission reduction available for allocation.

FincoEnergies also partnered with Lloyd’s Register (LR), who supported the development of the service. Their technical expertise has enabled shaping a solution that aligns with both regulatory requirements and FincoEnergies' established position as a biofuel supplier in the fuel supply chain.

“FuelEU Maritime represents one of the most important regulatory shifts for the shipping industry in decades,” said Alberto Perez, Global Head, Maritime Commercial Markets at LR. “By integrating technical expertise with strategic guidance, we ensure shipowners, operators, and suppliers not only comply with evolving emissions standards, but also proactively transform their operations, embracing new technologies and alternative fuels to ensure a sustainable and profitable future.”

“With a decade of experience in biofuel bunkers and carbon certificate trading in the voluntary market, we are excited to expand our creative and solution-oriented product portfolio with FuelEU Pooling,” said Johannes Schurmann, Commercial Director International Marine at FincoEnergies. 

“Thanks to our physical presence in the supply chain, shipping companies looking for FuelEU surplus can confidently rely on us as a trusted partner in their decarbonisation journey.”

Through its role as Pool Organiser, FincoEnergies streamlines the entire pooling process – from performing biofuel bunkers and prefinancing Surplus, to Surplus allocation and pool verification. With cost-effective pricing, FuelEU Pooling provides shipping companies with a competitive alternative for changing their fuel mix themselves.

 

Photo credit: FincoEnergies
Published: 21 April, 2025

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ECA

PO/Marine launches supply of MED ECA-compliant ULSFO bunker fuel

In preparation of the upcoming Mediterranean Emission Control Area regulation, PO/Marine successfully delivered its first supply of ULSFO with 0.10% sulphur content on 15 April.

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Aydın Yıldız, Head of Marine Sales at Petrol Ofisi Group

Petrol Ofisi’s bunkering arm PO/Marine on Thursday (17 April) said it has completed the bunkering operation of ULSFO—a marine fuel with 0.10% sulphur content—in alignment with the upcoming Mediterranean Emission Control Area (MED ECA) regulation. 

Under the new regulation, all vessels operating within the Mediterranean must use low-sulphur marine fuels.

Effective 1 May 2025, the Mediterranean will officially be designated as an Emission Control Area (MED ECA), prohibiting the use of marine fuels with sulphur content exceeding 0.10%. 

In preparation for this regulatory transition, PO/Marine successfully delivered its first supply of ULSFO (Ultra Low Sulphur Fuel Oil) with 0.10% sulphur content on 15 April.

PO/Marine launches supply of MED ECA-compliant ULSFO bunker fuel

Aydın Yıldız, Senior Maritime Manager at Petrol Ofisi Group, said: “Our leadership in the maritime fuel sector is defined not only by our market share but also by the innovative steps we take to shape the industry. 

“Successfully completing the supply of marine fuel with 0.10% sulphur content in alignment with the MED ECA transition in Türkiye is a concrete reflection of this. We previously led the way with the country’s first VLSFO bunkering operation, setting a precedent in our sector. 

“With our ULSFO bunkering, we have once again demonstrated that we are setting the standard in Türkiye’s marine fuel landscape. The designation of the Mediterranean as an Emission Control Area is not only a regional development but a historic turning point for global maritime operations.”

 

Photo credit: PO/Marine
Published: 21 April, 2025

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Bunker Fuel

Oilmar completes first ULSFO bunker fuel delivery in Türkiye

Company announced the successful completion of its first ULSFO 0.1% Sulphur delivery in Istanbul and is now offering the marine fuel in several key locations including Istanbul Anchorage and Marmara Sea.

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Turkiye flag

UAE-based marine fuel and petroleum products trader Oilmar DMCC on Friday (18 April) announced the successful completion of its first ULSFO 0.1% Sulphur delivery in Istanbul, marking one of the very first trades of its kind in the country.

“With this milestone, Oilmar proudly steps forward as one of Türkiye’s pioneering trading companies in ULSFO 0.1% Sulphur fuel,” it said in a social media post. 

Oilmar is now offering ULSFO 0.1% across key locations:

  • Istanbul Anchorage
  • Marmara Sea
  • Gulf of Derince
  • Bozcaada Anchorage
  • Southern Türkiye Ports

In addition, High Sulphur Fuel Oil (HSFO), Very Low Sulphur Fuel Oil (VLSFO), Ultra-Low Sulphur Fuel Oil (ULSFO), and Low Sulphur Marine Gasoil (LSMGO) are available at all ports across Türkiye.

 

Photo credit: Dima Rogachevskiy on Unsplash
Published: 21 April, 2025

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