JLC China Bunker Market Monthly Report (December 2021)

Analysis

Published Mon, 31st January 2022
by Admin

China’s bonded bunker fuel sales rose modestly to 1.78 million mt in December, as demand from the shipping sector grew boosted by robust year-end activity.

JLC China Bunker Market Monthly Report December 2021 01

Beijing-based commodity market information provider JLC Network Technology Co. recently shared its JLC China Bunker monthly report for December 2021 with Manifold Times through an exclusive arrangement:

Bunker Fuel Demand

Bonded bunker fuel sales rise modestly in December

China’s bonded bunker fuel sales rose modestly to 1.78 mln mt in December, as demand from the shipping sector grew, JLC data showed. The bunker fuel sales were boosted by robust year-end supply and increasing demand from surrounding countries’ ships.

Chimbusco and Sinopec sold about 740,000 mt and 750,000 mt of bonded bunker fuel, respectively. Bonded bunker fuel sales were about 80,000 mt for SinoBunker and 40,000 mt for China ChangJiang Bunker (Sinopec). Suppliers with Zhoushan license recorded 163,700 mt of sales and those with Shenzhen license sold 7,300 mt.

China’s bonded bunker fuel exports rose to 1.86 mln mt in November, up by 16.53% on month, the GAC data shows.

China exported 1.75 million mt of heavy bunker fuel and 103,700 mt of light bunker fuel in November, accounting for 94.41% and 5.59% respectively. Bonded bunker sales for state-owned enterprises were 1.70 mln mt, accounting for 91.65%. Specifically, bonded bunker fuel sales were 955,200 mt for Sinopec, 640,500 mt for Chimbusco, 64,400 mt for SinoBunker and 40,700 mt for China ChangJiang Bunker (Sinopec). Sales for independent enterprises were 154,900 mt, accounting for 8.35%.

Domestic bunker fuel demand inches up in December

Domestic bunker fuel demand inched up in December. Tight supply and fear of higher prices boosted restocking demand. End users’ consumption of domestic-trade heavy bunker fuel was about 340,000 mt in the month, up by 20,000 mt from November. The demand for light bunker fuel was 140,000 mt in December, flat with November.

Bunker Fuel Supply

Bonded bunker fuel imports grow in November

China’s bonded bunker fuel imports were 896,200 mt in November, up by 250.9% month on month but down by 20.72% year on year, GAC data showed.

Domestic bonded bunker fuel inventory dropped to a low level after October imports plummeted. Traders increased their imports in November amid some refiners’ shutdown for maintenance in East China, though imported fuel still lacked price advantage.

Specifically, Malaysia was still the largest supplier by exporting 483,100 mt of bunker fuel to China, accounting for 54% of the total volume. Imports from Singapore, South Korea and Japan were 28,160 mt, 94,400 mt and 37,100 mt, accounting for 31%, 11% and 4% respectively.

Domestic blended bunker fuel supply rise slightly in December

Chinese blending producers supplied a total of around 340,000 mt of heavy bunker fuel in December, up by 10,000 mt from November, JLC data showed. Some refiners shut down in the north of China for maintenance because of the Winter Olympic Games. Low-sulfur residue oil supply was still tight, especially in east China. Shale oil supply remained stable and the purchase interest of blenders increased. Blenders still had low inventory amid short supply of feedstocks. Domestic light oil supply was about 140,000 mt in December, up by 10,000 mt from the previous month. Light oil supply fluctuated slightly due to lower coking margin.

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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.

Photo credit: JLC Network Technology Co., Ltd
Published: 31 January, 2022

JLC China Bunker Market Monthly Report (December 2021)

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