Business
JLC China Bunker Market Monthly Report (December 2022)
China tallied a dip in its bonded bunker fuel sales in December, amid dwindling consumption, a weak global economy and tightening supply in northern regions.

Published
11 months agoon
By
Admin
Beijing-based commodity market information provider JLC Network Technology Co. recently shared its JLC China Bunker monthly report for December 2022 with Manifold Times through an exclusive arrangement:
Bunker Fuel Demand
China tallies a dip in bonded bunker fuel sales in December
China tallied a dip in its bonded bunker fuel sales in December 2022, amid dwindling consumption, a weak global economy and the tightening supply of bonded resources in northern regions.
The country sold about 1.53 million mt of bonded bunker fuel in the month, edging down by 0.65% month on month, JLC’s data shows. Specifically, the sales by Chimbusco, SinoBunker and China ChangJiang Bunker (Sinopec) slipped to 550,000 mt, 50,000 mt and 40,000 mt in the month respectively, while those by Sinopec Zhoushan climbed to 590,000 mt. In addition, suppliers with local licenses sold approximately 300,000 mt.
China saw a rebound in its bonded bunker fuel exports in November, owing to an uptick in domestic low-sulfur fuel oil (LSFO) production, also because of a relatively low base in October. The country exported about 1.29 million mt of bonded bunker fuel in November, a bounce of 4.95% month on month, according to the data from the General Administration of Customs of PRC (GACC).
Among the exports were close to 1.23 million mt of heavy bunker fuel and 68,300 mt of light marine gas oil (MGO), accounting for 94.72% and 5.28% of the total respectively.
Bonded bunker fuel exports by enterprises with national licenses amounted to 994,200 mt in the month, occupying 78.37% of the total, while those by enterprises with local licenses climbed to 280,000 mt, making up 21.63%, the data shows.
Some Chinese refineries continued to boost their LSFO production in the month, as state-owned refiners still had sufficient export quotas, resulting in a rise in bonded bunker fuel exports. China tallied about 1.40 million mt of LSFO output by Chinese refiners in November, growing by 5.34% month on month and 37.25% year on year, JLC’s data shows.
However, with domestic bonded bunker fuel prices falling, it was less profitable for refineries to produce LSFO. Under the interplay of abundant export quotas and fewer margins, most refineries maintained largely stable LSFO production in the month, putting a cap on the monthly margin growth.
Also underlying the increase in the exports was the relatively low base in the previous month. China’s bonded bunker fuel exports plunged to 1.23 million mt in October 2022, hitting a 31-month low, GACC data shows.
On a year-on-year comparison, however, the exports plunged by 30.23% in November, GACC data shows. The plunge mainly came as demand from the global shipping market had been strongly hit by the epidemic recurrence over the year.


Domestic bunker fuel demand shrinks further in December
Domestic-trade bunker fuel demand shrank further in December as most downstream buyers still held a wait-and-see attitude when the negative impact of the epidemic lingered, though China gradually removed its virus-related restrictions.
The demand for heavy bunker fuel contracted to 340,000 mt in the month, down by 20,000 mt or 5.56% from November, JLC’s data indicates. Meanwhile, domestic-trade light bunker fuel demand slid to around 120,000 mt, a drop of 10,000 mt or 7.69% month on month. Light bunker fuel demand also moved lower, as buyers who were bearish on the bunker fuel market continued to base their purchases on rigid demand, despite a decline in prices of marine gas oil (MGO).
Bunker Fuel Supply
China’s Nov bonded bunker fuel imports rise to 12-month high
China’s bonded bunker fuel imports extended gains and hit a 12-month high in November when domestic supply stayed relatively tight, despite a rise in domestic low-sulfur fuel oil (LSFO) production.
The country imported approximately 630,000 mt of bonded bunker fuel in November, a leap of 25.02% from the previous month, according to data from the General Administration of Customs of PRC (GACC).
Malaysia became the largest supplier in the month, with 361,900 mt of bonded bunker fuel imports from the country, accounting for 57% of the total. Singapore ranked second by exporting 161,500 mt of bonded bunker fuel to China, making up 26%. South Korea took the third place with 106,700 mt, occupying 17%.
Chinese refiners continued to expand their bonded bunker fuel imports in the month as domestic supply was still relatively tight. Although some refineries raised their LSFO production amid sufficient export quotas, others still lacked production enthusiasm as production margins were further squeezed by falling bunker fuel prices.
Tracking a slump in international crude prices, international bunker fuel prices dropped rapidly in the month, and the drop was more significant than that in China’s bonded bunker fuel prices. Therefore, certain market participants were incentivized to increase their bonded bunker fuel imports.
On a year-on-year comparison, China’s bonded bunker fuel imports tumbled by 29.70%, GACC data shows. Underlying the plunge was a boost in domestic LSFO production. The country tallied about 1.40 million mt of LSFO output in November, surging by 37.25% year on year, JLC’s data shows.
China imported an accumulation of about 4.70 million mt of bonded bunker fuel in the first eleven months of 2022, a nosedive of 40.93% year on year, decelerating from a slump of 42.39% in January-October, GACC data shows.

Domestic blended heavy bunker fuel supply decreases in December
Chinese blenders supplied 370,000 mt of heavy bunker fuel in December 2022, a fallback of 20,000 mt or 5.13% from the previous month, JLC’s data indicates.
Domestic blended heavy bunker fuel supply continued to tighten in the month, as blenders preferred low inventory with the year-end drawing near and dared not to make deals easily, though blendstock prices went down. In addition, some small oil suppliers exited the market ahead of the Spring Festival, which also contributed to the supply decline.
Conversely, the supply of domestic blended marine gas oil (MGO) climbed to 170,000 mt, gaining 20,000 mt or 13.33%, the data shows. As Chinese refiners had achieved their oil product export targets for 2022, the supply of diesel that flowed into the bunker field increased.

Bunker Prices, Profits



Editor
Yvette Luo
+86-020-38834382
[email protected]
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 (November 2022)
Related: JLC China Bunker Market Monthly Report (October 2022)
Related: JLC China Bunker Market Monthly Report (September 2022)
Related: JLC China Bunker Market Monthly Report (August 2022)
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 January, 2023
Biofuel
China Shipping & Sinopec Suppliers completes first biofuel bunkering op of passenger ship in Dalian
Firm successfully refuelled passenger ship “Chang Shan Dao” owned by Cosco Shipping Ferry with B24 bio bunker fuel on 29 November at Dalian Cruise Port.

Published
2 days agoon
December 8, 2023By
Admin
China Shipping & Sinopec Suppliers Co., Ltd. on Wednesday (29 November) successfully refuelled passenger ship "Chang Shan Dao" owned by Cosco Shipping Ferry Co., Ltd. with B24 bio bunker fuel at the Dalian Cruise Port.
The occasion marked the first biofuel bunkering operation for passenger ships in China.
The B24 biofuel oil used was blended with 24% biofuel and 76% conventional low-sulphur fuel oil.
Sinopec China Shipping Fuel Supply, which is responsible for the bunkering operation, is a bunker supply firm jointly established by Sinopec Group and COSCO Shipping Group.
According to Li Zhi, Deputy Party Secretary and Deputy General Manager of China Shipping & Sinopec Suppliers Co., Ltd., the biofuel bunkering business is another step in the company's active business of the group's development strategy.
The bunkering operation after the firm completed the first bonded biofuel bunkering operation of a domestic ship on 7 September.
Disclaimer: The above article published by Manifold Times was sourced from China’s domestic market through a local correspondent. While considerable efforts have been taken to verify its accuracy through a professional translator and processed from sources believed to be reliable, no warranty is made regarding the accuracy, completeness and reliability of any information.
Photo credit: China Shipping & Sinopec Suppliers
Published: 8 December, 2023
Alternative Fuels
Singapore, Tianjin to pilot and trial alternative bunker fuels following shipping corridor MoU
Singapore – Tianjin Green and Digital Shipping Corridor will serve as a valuable testbed for both countries to pilot and trial digital solutions, alternative fuels and technologies, amongst others.

Published
2 days agoon
December 8, 2023By
Admin
The Maritime and Port Authority of Singapore (MPA) and the People’s Republic of China’s Tianjin Municipal Transportation Commission on Wednesday (6 December) signed a memorandum of understanding (MoU) to establish the Singapore – Tianjin Green and Digital Shipping Corridor.
Mr Teo Eng Dih, Chief Executive, MPA, and Mr Wang Zhinan, Director General, Tianjin Municipal Transportation Commission, signed this MoU.
The MoU marked the first Green and Digital Shipping Corridor established between Singapore and China to support the decarbonisation, digitalisation and growth of the maritime industry between Singapore and the Bohai Region.
The Singapore – Tianjin Green and Digital Shipping Corridor will serve as a valuable testbed for both countries to pilot and trial digital solutions, alternative bunker fuels and technologies, and facilitate talent development to support the decarbonisation and digitalisation of shipping.
Singapore and Tianjin will work with the research community, the institutes of higher learning, and industry stakeholders such as shipping lines, port operators, shipbuilders, classification societies, and bunker suppliers to enable more efficient port clearance through digital exchanges, encourage the offtake of zero or near-zero greenhouse gas emission fuels and adoption of new fuel technologies, spur innovation and support the growth of the maritime startups community, and facilitate manpower training and professional development.
The establishment of the Singapore – Tianjin Green and Digital Shipping Corridor reaffirms the strong commitment by Singapore and Tianjin to accelerate maritime decarbonisation and digitalisation. Singapore will also be exploring the establishment of similar collaboration with other maritime and port ecosystems within China.
Photo credit: Maritime and Port Authority of Singapore
Published: 8 December, 2023
Decarbonisation
Report highlights routes-based action plan methodology to accelerate uptake of clean bunker fuels
NextGEN Connect-GreenVoyage2050 collaboration, which includes Singapore, emphasises the important role of regional energy hubs in enabling the inclusive adoption of clean marine fuels.

Published
2 days agoon
December 8, 2023By
Admin
The Maritime and Port Authority of Singapore (MPA) on Thursday (7 December) said the NextGEN Connect-Green Voyage2050 Project identified a key role for regional hubs to help connect large demand clusters and remote locations, with regional fuel supply sources, in order to enable a more inclusive and effective transition to a low-carbon maritime future.
The project is a collaboration between Singapore, Norway and the International Maritime Organization (IMO).
These findings were unveiled in the Lloyd’s Register Maritime Decarbonisation Hub (LR MDH) report titled Routes-based Action Plans: A Toolkit launched at the Voyage to Net-Zero Forum, which was organised by MPA, at the 28th United Nations Climate Change Conference (COP28/CMP8/CMA5) yesterday.
The report was developed following a workshop discussion that was held from 5 to 6 October 2023 in Singapore, with the participation of 40 stakeholders representing ports and National Administrations across Asia, based on the concept of the LR MDH’s First Movers Framework for green corridors. The workshop simulated the process steps of the routes-based action plan methodology, addressing the limitations in its application in the wider Asian context. Additional engagements with stakeholders from the Pacific are envisaged to further refine the methodology.
“One of the key findings in our report highlighted the varying pace of decarbonisation efforts across the Asian region and the need for regional coordination among governments to establish energy clusters that will serve both as demand centres and energy producing hubs” said Charles Haskell, Director at LR MDH.
The creation of energy producing hubs includes defining a strategy that brings together demand from different countries at different developmental stages across the region to build up investment cases for implementing energy infrastructure at scale, all the while taking into consideration the economic and social benefits for local communities.
The report also emphasised that routes-based action plans should be steered by national governments to give confidence to the industry’s infrastructure investment decisions, with development banks and regional funds needing to play a part to help tailor financing solutions to support infrastructure development.
“If we truly want to achieve a net-zero future where no one is left behind, we cannot focus only on existing first mover initiatives. We must also study locations where the energy infrastructure is still in its infancy”, added Charles Haskell.
Essential to driving the implementation of routes-based action plans, as highlighted in the report, is the pooling of resources and capacity building to develop the business case for building the necessary infrastructure for regional hubs that include Least Developed Countries (LDCs) and Small Island Developing States (SIDS). This will require regional coordination and collaboration involving governments and all stakeholders across the maritime supply chain.
Mr. Teo Eng Dih, Chief Executive of MPA, said: “As we steer toward a sustainable maritime future, fostering a collective and inclusive approach is imperative in the development of green corridors and the energy transition to decarbonise international shipping.”
“The NextGEN Connect-GreenVoyage2050 collaboration emphasises the important role of regional energy hubs in enabling the inclusive adoption of clean marine fuels, particularly for LDCs and SIDSs. MPA looks forward to continuing its collaboration with IMO, Ministry of Climate and Environment of Norway and LR MDH to pilot solutions to reduce GHG emissions from ships and drive innovative transformations in the maritime industry.”
Sveinung Oftedal, Chief Negotiator of the Norwegian Ministry of Climate and Environment, said: “Separate routes for emission-free ferries and ships can play an essential role in stimulating early action to adopt zero or near-zero emission technologies and fuels, and hence are an important step towards decarbonising shipping. There is currently a significant volume of maritime traffic between Asian countries, and our workshop was a great forum to discuss opportunities the decarbonisation of maritime shipping can bring and how efforts can be linked to countries’ wider energy transition.”
Jose Matheickal, IMO Director of Partnerships and Projects, said: “Supporting developing countries, including SIDS and LDCs, in their efforts to implement the 2023 IMO Strategy on the Reduction of GHG Emissions from Ships is imperative to the decarbonisation of the maritime sector. IMO is pleased to provide, through this collaboration, practical support around the development and subsequent implementation of National Action Plans and route-based actions in line with IMO’s MEPC RESOLUTION.366(79) that encourages Member States to undertake these voluntary actions to facilitate the achievement of greener shipping and reduced emissions.”
Note: ‘Routes-based action Plans: a toolkit’ can be found here.
Photo credit: Maritime and Port Authority of Singapore
Published: 8 December, 2023

China Shipping & Sinopec Suppliers completes first biofuel bunkering op of passenger ship in Dalian

JLC China Bunker Market Monthly Report (November 2023)

Singapore, Tianjin to pilot and trial alternative bunker fuels following shipping corridor MoU

Report highlights routes-based action plan methodology to accelerate uptake of clean bunker fuels

Peninsula supplies LNG bunker fuel to EPS crude oil tanker “Starway”

ENGINE: Americas Bunker Fuel Availability Outlook (7 Dec 2023)

Baltic Exchange: Bunker Report (7 December, 2023)

Singapore: Golden Island switching to 100% e-BDN operations from 1 December

DNV, VPS, ZeroNorth and EMF among Marine Fuels 360 Award winners

Marine Fuels 360: Fingerprinting to play key role in proving biofuel feedstock authenticity and beyond, says VPS

Höegh Autoliners, Sumitomo to collaborate on ammonia bunker fuel supply for PCTCs in Singapore, Jacksonville

Meyer Turku delivers LNG-fuelled “Icon of the Seas” to Royal Caribbean

Kenoil Marine Services to conduct first-ever bunkering of bio-blended LSMGO in Singapore

China: Dealfeng New Energy completes rotor sail installations on oil tanker, deck carrier
Trending
-
Technology2 weeks ago
Singapore: Golden Island switching to 100% e-BDN operations from 1 December
-
Events1 week ago
DNV, VPS, ZeroNorth and EMF among Marine Fuels 360 Award winners
-
Bunker Fuel2 weeks ago
Marine Fuels 360: Fingerprinting to play key role in proving biofuel feedstock authenticity and beyond, says VPS
-
Ammonia4 days ago
Höegh Autoliners, Sumitomo to collaborate on ammonia bunker fuel supply for PCTCs in Singapore, Jacksonville
-
LNG Bunkering2 weeks ago
Meyer Turku delivers LNG-fuelled “Icon of the Seas” to Royal Caribbean
-
Biofuel1 week ago
Kenoil Marine Services to conduct first-ever bunkering of bio-blended LSMGO in Singapore
-
Decarbonisation2 weeks ago
China: Dealfeng New Energy completes rotor sail installations on oil tanker, deck carrier
-
Hydrogen2 weeks ago
Norwegian Hydrogen will soon supply green hydrogen to world’s first hydrogen-powered fishing vessel