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JLC China Bunker Market Monthly Report (December, 2020)

Bunker demand in China increased amid bullish sentiments on transport demand and higher bunker prices; suppliers also offered discounts to boost sales for the year end.

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Beijing-based commodity market information provider JLC Network Technology Co. on Thursday (14 January) shared its JLC China Bunker monthly report for December with Manifold Times through an exclusive arrangement: 

JLC China Bunker Market Monthly Report (December, 2020)

Highlights

 Demand and Supply

Bunker Fuel Demand

Bonded bunker fuel sales edge up in December

In December, China’s bonded bunker fuel sales inched up to 1.49 million mt, JLC data showed. Bunkering demand from end users increased amid bullish sentiments on better transportation demand and higher bonded bunker fuel prices. Besides, bonded bunker fuel suppliers tended to offer discounts to boost sales by the end of the year. Chimbusco and Sinopec sold about 643,400 mt and 556,500 mt of bonded bunker fuel, respectively. Bonded bunker fuel sales were about 45,600 mt for SinoBunker and 42,000 mt for China ChangJiang Bunker (Sinopec). New enterprises in the China (Zhejiang) Pilot Free Trade Zone sold 205,000 mt.

China’s bonded bunker fuel sales nudged up to 1.34 million mt in November, up by 0.91% month on month, according to GAC data. In November, sales were underpinned by stable to higher bunker fuel demand. Bunker fuel oil prices strengthened from H2 November amid a stronger shipping market. Specifically, bonded bunker fuel sales were 522,800 mt for Sinopec, 610,400 mt for Chimbusco, 44,400 mt for SinoBunker, 22,000 mt for China ChangJiang Bunker (Sinopec) and 144,100 mt for new enterprises in the China (Zhejiang) Pilot Free Trade Zone.

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Domestic bunker fuel demand improves in December

Domestic bunker fuel demand grew in December. End users’ consumption of domestic-trade heavy bunker fuel was about 350,000 mt in the month, up by 20,000 mt from the previous month. The demand for light bunker fuel was 130,000 mt in December, up by 10,000 mt from November. Supported by strong blendstock costs and international crude prices, domestic bunker fuel prices rose markedly, sparking buying interest of downstream users. Demand for coal transport improved significantly in winter, but transportation slowed down amid cold weather. As a result, freight rates and domestic bunker fuel demand rose. 

Bunker Fuel Supply

Bonded bunker fuel imports rebound 78.87% in November

China’s bonded bunker fuel imports were 1.13 million mt in November, a jump of 78.87% month on month and a rise of 6.85% year on year, GAC data showed. Bonded bunker fuel distributors increased imports as import prices were attractive in early November and domestic inventories were low. Chimbusco and Sinopec ramped up imports of low-sulfur fuel oil, with large imported cargoes arriving at Zhoushan and Qingdao ports. Therefore, bonded bunker fuel imports in November rebounded sharply. 

Specifically, the largest import source for China was still Malaysia with 528,600 mt of bunker fuel. Imports from Singapore and South Korea were 319,000 mt and 155,400 mt respectively. The imports were 88,900 mt from the UAE and 28,600 mt from Russia.

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Domestic blended bunker fuel supply climbs in December

Chinese blending producers supplied a total of around 380,000 mt of heavy bunker fuel in December, a rise of 30,000 mt or 8.57% month on month, JLC data showed. In December, low-sulfur residue oil supply rose, especially the supply in the northeastern region. However, blended bunker fuel supply in East and South China was thin on tight supply of asphalt there. Trades were active, supported by firm international crude prices. Due to tight supply of tax-included products, some downstream users fixed their purchasing prices in advance. Light bunker fuel supply was about 140,000 mt, up by 10,000 from November as refiners kept high operating rates, despite narrowing refining margins.

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JLC Network Technology Co., Ltd is recognised as the leading information provider in China. We specialised in providing the transparent, high-value, authoritative market intelligence and professional analysis in commodity markets. Our expertise covers oil, gas, coal, chemical, plastic, rubber, fertiliser 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 authorisation from JLC.

Related: JLC China Bunker Market Monthly Report (November, 2020)
Related: JLC China Bunker Market Monthly Report (October, 2020)
Related: JLC China Bunker Market Monthly Report (September, 2020)
Related: JLC China Bunker Market Monthly Report (July, 2020)
Related: JLC China Bunker Market Monthly Report (June, 2020)
Related: JLC China Bunker Oil Market Monthly Report (May, 2020)


Photo credit: JLC Network Technology Co Ltd
Published: 14 January, 2021

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Bunker Fuel Quality

FOBAS: High/off-spec ash found in ARA residual bunker fuels due to calcium

These fuels were bunkered in the second half of April from ports in the ARA region with tested ash ranging from 0.102 to 0.127%m/m; high calcium is a main contributor to the off-spec ash.

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Louis Reed from Unsplash

Lloyd’s Register Fuel Oil Bunkering Analysis and Advisory Service (FOBAS) on Thursday (8 May) released a bulletin regarding its testing on a number of fuels that have a high tested Ash content, above the 0.100%m/m limit for an RMG380 grade:

In recent days FOBAS has tested a number of fuels that have a high tested Ash content, above the 0.100%m/m limit for an RMG380 grade. These fuels were bunkered in the second half of April from ports in the ARA (Antwerp, Rotterdam, Amsterdam) region with tested Ash ranging from 0.102 to 0.127%m/m.

These fuels are all high sulphur residual fuels (>0.50% mass) with very similar properties and appear to be from the same source.

One common factor in all is the high Calcium which is a main contributor to the off-spec Ash in each case. Calcium ranged from 116mg/kg up to 181mg/kg. Sodium was also relatively high ranging from 50 to 86mg/kg., The fuels also had high acid numbers (TAN) ranging from 2.20 to 3.40mgKOH/g.

Often when we see high acid numbers (>2.00mgKOH/g) and high Calcium together this is due to naphthenic acids. These are present in the original crude oil and generally not considered any operational concern. Initial testing on some of these recent fuels show naphthenic acids to be present.

There are some additional points to clarify on the above:

  • Firstly, in relation to Calcium, it may be noted that ISO8217 lists a 30mg/kg limit for Calcium. It is important to note the full clarification in the standard however, where the Calcium limit only applies in conjunction with the Phosphorus or Zinc limits of 15mg/kg, used as a measure of ULO (Used Lubricating Oil) presence, rather than to limit the Calcium content on its own.
  • Sodium levels, although relatively high are all still below the 100mg/kg RMG380 grade limit.
  • On any high acid number fuel, it should also be noted that just because naphthenic acids are present, it does not rule out any other contamination or potential issues with the fuel. Additional attention should be given to the performance of the fuel injection equipment and component conditions during the use of such fuels
  • Although Calcium on its own is not a problem, at high levels where it increases the total Ash content as seen here, it can be an issue with increased Ash potentially leading to an increase in post combustion fouling and surging of turbocharger. This should not be allowed to accumulate in particular in the turbocharger, inlet grids, nozzle and blading.

So far we have not had any operation problems reported on the use of these fuels, however caution should be taken in particular to dealing with any increase in post combustion fouling as mentioned, and if further investigation into the nature of the acidic components present is required to confirm they are only naphthenic acids then detailed GCMS forensic testing could be carried out.

 

Photo credit: Louis Reed from Unsplash
Published: 9 May, 2025

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LNG Bunkering

Singapore: ITOPF and Britannia P&I Club conduct table-top workshop for LNG bunker spills

Both held a workshop where attendees planned a response to a spill scenario of LNG from an alternatively fuelled vessel as part of a new training exercise.

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Singapore: ITOPF and Britannia P&I Club conduct table-top workshop for LNG bunker spills

The International Tanker Owners Pollution Federation (ITOPF) on Wednesday (7 May) said it held a table-top workshop with Britannia P&I Club in Singapore where attendees planned a response to a spill scenario of Liquefied Natural Gas (LNG) as part of a new training exercise called HYDRO NEXUS. 

The half-day event saw team members from Britannia successfully responding to a spill of LNG bunkers from an alternatively fuelled vessel, who were assisted by the ITOPF team on how best to approach the response, taking into account the risks and hazards presented by this substance.

“The Britannia team were guided by ITOPF’s experts on the steps of an alternative fuel and HNS (Hazardous and Noxious Substances) response, including information gathering, risk assessment, appropriate PPE selection, and use of different techniques and equipment used in these spill scenarios,” it said on its website. 

“One key component of the exercise was to demonstrate the potential impacts and claims that the P&I insurers may face during an alternative fuel/HNS incident. Teams collated costs for loss of life and personal injury, clean-up and preventive measures, property damage, economic loss and environmental damage claims.”

 

Photo credit: International Tanker Owners Pollution Federation
Published: 9 May, 2025

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Decarbonisation

Singapore-based Berge Bulk installs carbon capture system on board bulk carrier

System, developed by Value Maritime, integrates carbon capture into an exhaust gas cleaning system known as the Filtree System, designed to capture up to 15 tonnes of CO₂ per day.

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Singapore-based Berge Bulk installs carbon capture system on board bulk carrier

Singapore-based dry bulk owner Berge Bulk on Wednesday (7 May) said it has completed the installation of a carbon capture system on board its 63,000 DWT Ultramax vessel Berge Yotei.

The system, developed by Value Maritime, integrates carbon capture into an exhaust gas cleaning system known as the Filtree System. It is designed to capture up to 15 tonnes of CO₂ per day, representing a potential 30% reduction in emissions during operations.

Unlike conventional scrubbers, the Filtree System removes both sulphur oxides and CO₂ from a vessel’s exhaust. CO₂ is absorbed into a reusable amine solution, which can be offloaded in port for regeneration or reuse. Potential applications include use in greenhouses, beverage production, and other industrial processes — contributing to a more circular carbon economy.

“Carbon capture is a key pillar of our decarbonisation strategy. While we remain committed to optimising fleet efficiency, installing decarbonisation technology, and switching to new fuels, we must also capture carbon at the same time.” said James Marshall, CEO of Berge Bulk. 

“We’ve been actively capturing carbon through nature-based solutions on shore for many years, now it’s time to also start capturing carbon on board.”

As the industry looks to decarbonise, Berge Bulk emphasised the need for collaboration across governments, ports, technology providers, and regulators to develop the infrastructure, protocols, and commercial models needed to support carbon capture at scale.

 

Photo credit: Berge Bulk
Published: 9 May, 2025

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