Bunker Fuel

JLC China Bunker Market Monthly Report (December 2023)

Country recorded 1.54 million mt of bonded bunker fuel sales in December, with the daily sales down by 8.04% month on month to 49,810 mt, JLC’s data shows.

Published

1 year ago

January 12, 2024

Admin

JLC China Bunker Market Monthly Report (December 2023)

Beijing-based commodity market information provider JLC Network Technology Co. recently shared its JLC China Bunker monthly report for December 2023 with Manifold Times through an exclusive arrangement:

Bunker Fuel Demand

China’s bonded bunker fuel sales retreat in December

China’s bonded bunker fuel sales retreated in December, mainly due to tighter supply of low-sulfur bunker fuel.

The country recorded 1.54 million mt of bonded bunker fuel sales in December, with the daily sales down by 8.04% month on month to 49,810 mt, JLC’s data shows.

The sales by Sinopec Zhoushan, SinoBunker and China ChangJiang Bunker (Sinopec) fell to 560,000 mt, 50,000 mt and 30,000 mt in the month respectively, while those by suppliers with regional bunkering licenses dropped to 424,100 mt, down from 435,000 mt in November.

In the meantime, Chimbusco tallied about 480,000 mt of bonded bunker fuel sales, unchanged month on month, the data also indicates.

Low-sulfur fuel oil supply tightened amid insufficient export quotas, leading to a decline in China’s bonded bunker fuel sales. Meanwhile, bunkering operation at some Chinese ports was spoiled by bad weather, adding to the downward pressure on the sales.

China’s bonded bunker fuel exports drop further in November

China’s bonded bunker fuel exports dropped further in November, due to tighter quotas on low-sulfur fuel oil (LSFO) exports.

The country exported about 1.37 million mt of bonded bunker fuel in the month, a cut of 6.12% month on month, JLC estimated, with reference to data from the General Administration of Customs of PRC (GACC).

Heavy bunker fuel exports fell to roughly 1.31 million mt in November, accounting for 95.42% of the total, while light bunker fuel exports slipped to 62,700 mt, accounting for 4.58%.

Enterprises with national bunkering licenses exported about 933,200 mt of bonded bunker fuel in the month, making up 68.20%, with Sinopec Fuel Oil and Chimbusco taking 60.93%. Meanwhile, enterprises with regional licenses supplied 435,000 mt, accounting for 31.80%.

Facing quota tightness, Chinese refiners continued to cut their LSFO production and exports. China tallied only 637,000 mt of LSFO output in November, with the daily output at 21,233 mt, a plunge of 32.49% month on month, JLC’s data shows.

Sinopec’s application to convert quotas on 800,000 mt of fuel oil exports to those on oil product exports was approved in November, bringing China’s total LSFO quotas for 2023 down to 13.20 million mt. By the end of November, Chinese refiners had used about 96.1% of the total quotas, JLC’s data shows.

Lower exports were also ascribed to inflating export costs. The barging capacity at ports in South China and Shandong decreased, pushing up freight rates and hitting some bonded distributors’ export interest.

However, on a year-on-year comparison, China’s bonded bunker fuel exports grew by 5.68% in November.

China’s bonded bunker fuel exports totaled approximately 18.07 million mt in January-November, a gain of 1.09% from the same months in 2022, speeding up from 0.74% in January-October.

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Domestic-trade bunker fuel demand contracts in December

Domestic-trade bunker fuel demand contracted in December, as buyers’ acceptance of lofty prices was limited. Though China’s bunker fuel prices dropped in the month, they were still relatively high, supported by tight supply.

Domestic-trade heavy bunker fuel demand settled at 430,000 mt in the month, down by 20,000 mt or 4.4% from the previous month, JLC’s data shows. Meanwhile, domestic-trade marine gasoil (MGO) demand plunged to 130,000 mt, down by 30,000 mt or 18.8% month on month. Trading in the light bunker fuel market was tepid, and shipowners showed low buying interest.

Bunker Fuel Supply

China’s bonded bunker fuel imports soar in November

China’s bonded bunker fuel imports soared in November, because of tighter domestic supply.

The country imported about 536,900 mt of bonded bunker fuel in the month, a sharp boost of 32.70% month on month, JLC estimated, with reference to data from the General Administration of Customs of Chinese refiners cut their low-sulfur fuel oil (LSFO) output further in November, due to persistent quota tightness. China’s LSFO output settled at 637,000 mt in the month, with the daily output at 21,233 mt, a plunge of 32.49% from October, JLC’s data shows.

To fill the domestic supply gap, bonded distributors continued to increase their low-sulfur bunker fuel imports. However, continuous rises in the premiums for imported LSFO capped the imports to some degree.

High-sulfur bunker fuel imports also grew in the month amid supply tightness, while marine gasoil (MGO) imports held largely stable.

Singapore remained the largest supplier by sending 171,900 mt of bonded bunker fuel to China in the month, accounting for 32.02% of China’s total imports. Meanwhile, South Korea and Malaysia climbed to the second and third place with 158,800 mt and 92,900 mt, accounting for 29.58% and 17.31% respectively. Russia slipped to the fourth place with 70,700 mt, occupying 13.16%, followed by Japan with 42,500 mt, which made up 7.92%.

On a year-on-year comparison, however, China’s bonded bunker fuel imports dropped by 14.78% in November.

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Domestic-trade bunker fuel supply tightens in December

Domestic-trade heavy bunker fuel supply tightened in December, as blenders slowed down production when their blending costs inflated. Meanwhile, cargo delivery was not smooth against the background of strict tax inspection, forcing blenders to base their production on sales. Chinese blenders supplied about 430,000 mt of domestic-trade heavy bunker fuel in December, down by 30,000 mt or 6.52%, JLC’s data indicates.

At the same time, domestic-trade marine gasoil (MGO) supply settled at 150,000 mt, a monthly cut of 10,000 mt or 5.56%, the data shows. Refineries’ production enthusiasm was low when MGO prices dropped.

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BunkerPrices, Profits

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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.

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, 2024

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Legal

Shell MGO bunker heist: Bunker clerk gets jail time for helping Sentek acquire misappropriated fuel

Wong Wai Meng was sentenced to seven years, four months and two weeks’ jail on 10 January for helping the company acquire more than 28,000 mt of the misappropriated fuel worth USD 13.58 million.

Published

12 hours ago

January 13, 2025

Admin

A bunker clerk, who was previously employed by Sentek Marine & Trading (Sentek), was sentenced to seven years, four months and two weeks’ jail for helping the company acquire more than 28,000 metric tonnes (mt) of the misappropriated fuel worth USD 13.58 million (SGD 18.26 million), The Straits Times reported on Friday (10 January).

Wong Wai Meng, was working for Singapore-based firm Sentek at the time of the offences.

Wong, who received more than USD 286,000 from the company for his assistance, pleaded guilty in November 2024 to 12 counts of intentionally helping the company acquire the misappropriated fuel.

He committed the offences over 46 occasions between August 2014 and December 2017.

Wong is among the three bunker clerks previously employed by Sentek, who were charged for offences under the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (CDSA) and the Prevention of Corruption Act (PCA).

Another bunker clerk among the three charged, Wong Kuin Wah, 61, was sentenced to seven years and six months’ jail on 18 November for his role in misappropriating more than 27,000 tonnes of gas oil worth around USD 12.8 million (SGD 17.2 million).

The third individual who was charged, Boo Pu Wen, reportedly passed away in July 2023 and had his charges abated following his death, meaning Boo’s court proceedings over his 19 charges at the time came to an end.

Former Shell employees, who were key members of a group who dishonestly misappropriated fuel from Shell Pulau Bukom, were sentenced to jail in court earlier.

Earlier coverage of developments by Manifold Times regarding the Shell MGO bunker heist can be found below:

Photo credit: Katrin Bolovtsova
Published: 13 January, 2025

Bunker Fuel

JLC China Bunker Fuel Market Monthly Report (December 2024)

Country sold about 1.59 million mt of bonded bunker fuel in the month, with daily sales at 51,332 mt, a dip of 1.25% from a month earlier, JLC’s data shows.

Published

13 hours ago

January 13, 2025

Admin

JLC China Bunker Fuel Market Monthly Report (December 2024)

Beijing-based commodity market information provider JLC Network Technology Co. recently shared its JLC China Bunker monthly report for December 2024 with Manifold Times through an exclusive arrangement:

China’s daily bonded bunker fuel sales slip in December

China’s daily bonded bunker fuel sales slipped in December, as domestic LSFO supply tightened.

The country sold about 1.59 million mt of bonded bunker fuel in the month, with daily sales at 51,332 mt, a dip of 1.25% from a month earlier, JLC’s data shows. (Note: The volume of China’s November bonded bunker fuel sales has been revised to 1.56 million mt, up from 1.52 million mt stated in the report for November, with Chimubusco’s sales up from 320,000 mt to 360,000 mt.)

Bonded bunker fuel sales by Chimbusco, Sinopec (Zhoushan), SinoBunker and China Changjiang Bunker (Sinopec) settled at 450,000 mt, 500,000 mt, 40,000 mt and 15,000 mt in the month, while those by suppliers with regional bunkering licenses settled at 586,300 mt.

Overall bunkering demand was relatively stable in the month, but domestic refiners continued to cut their LSFO production amid tight quotas, resulting in a decline in daily bonded bunker fuel sales.

China’s bonded bunker fuel exports surge in November

China’s bonded bunker fuel exports surged in November, as bunker suppliers were making efforts to boost sales, also because of more re-export trade activities.

The country exported about 1.82 million mt of bonded bunker fuel in the month, with the daily exports at 60,643 mt, up by 46.57% month on month and 32.97% year on year, JLC calculated, with reference to data from the General Administration of Customs of PRC (GACC).

In breakdown, heavy bunker fuel exports climbed to about 1.71 million mt, accounting for 93.77% of the total exports, while light bunker fuel exports amounted to 113,300 mt, occupying 6.23%.

Despite a further drop in domestic LSFO output, bonded distributors exported more bonded bunker fuel in the month, in a bid to achieve their annual sales targets and lower their inventories. Meanwhile, bonded distributors saw more arrivals of imported LSFO cargoes, and they sold more bonded bunker fuel in the form of re-export trade, which also drove up the exports.

China tallied a total of 18.19 million mt of bonded bunker fuel exports in January-November, with the daily exports at 54,309 mt, inching up by 0.39% from the same months in 2023, JLC estimates, based on the GACC data. Specifically, heavy bunker fuel exports settled at 16.99 million mt in the eleven months, accounting for 93.37% of the total, while light bunker fuel exports settled at 1.21 million mt, making up 6.63%.

JLC China Bunker Fuel Market Monthly Report (December 2024)

Domestic-trade heavy bunker fuel demand strengthens in December

Domestic-trade heavy bunker fuel demand strengthened in December.

Domestic-trade heavy bunker fuel demand amounted to 400,000 mt in December, rising by 20,000 mt or 5.26% month on month, JLC’s data shows.

Shipowners just made purchases to meet rigid demand in the first half of the month when domestic bunker fuel prices rose. However, they engaged in more transactions in the second half as prices retreated and their restocking demand increased amid the approach of the Spring Festival.

On the flip side, domestic light bunker fuel demand dropped to 140,000 mt in the month, down by 10,000 mt or 6.67% from the prior month.

Market sentiment was bearish on diesel demand, attributable to lower operating rates at infrastructure construction and other outdoor projects amid falling temperatures.

Bunker Fuel Supply

China’s bonded bunker fuel imports hit 44-month high

China’s bonded bunker fuel imports soared significantly in November, hitting a 44-month high, as domestic LSFO supply tightened amid insufficient export quotas.

China imported 915,200 mt of bonded bunker fuel in the month, the highest level since March 2021, JLC calculated, with reference to data from the GACC. The imports jumped by 35.50% from the previous month and 70.46% from a year earlier.

Domestic refiners continued to cut their LSFO output as they had run short of export quotas. As a result, bonded dealers had to import more bonded bunker fuel to fill the demand gap. These refiners produced about 466,000 mt of LSFO in November, with the daily output at 15,533 mt, plunging by 38.87% month on month and 41.58% year on year, JLC’s data shows.

While LSFO imports grew, imports of bonded HSFO and MGO were still basically stable in November.

Malaysia was still the largest bonded bunker fuel supplier to China in November, shipping 472,200 mt of bonded bunker fuel to China, which accounted for 51.60% of China’s total imports. Meanwhile, Singapore and South Korea remained in the second and third place with 262,100 mt and 112,000 mt, accounting for 28.64% and 12.23%, respectively. Peru came in fourth with 86,900 mt, occupying 7.53%.

China imported a total of 4.95 million mt of bonded bunker fuel in January-November, skyrocketing by 29.33% from the corresponding months in 2023, versus a rise of 22.61% in January-October.

JLC China Bunker Fuel Market Monthly Report (December 2024)

Blenders raise heavy bunker fuel supply in December

Chinese blenders raised their heavy bunker fuel supply in December, as downstream restocking increased amid the approach of the Chinese New Year holiday, though supply of some blendstock such as shale oil and light coal tar was relatively tight.

These blenders supplied about 430,000 mt of domestic-trade heavy bunker fuel in the month, a boost of 30,000 mt or 7.5% month on month, JLC’s data shows.

On the contrary, domestic-trade light bunker fuel supply tightened amid weaker diesel demand and refineries’ lower operating rates. Domestic-trade MGO supply shrank to 160,000 mt in December, down by 20,000 mt or 11.11% from a month earlier, the data indicates.

JLC China Bunker Fuel Market Monthly Report (December 2024)

BunkerPrices,Profits

JLC China Bunker Fuel Market Monthly Report (December 2024)

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 recognised as the leading information provider in China. We specialise 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.

Photo credit: JLC Network Technology
Published: 13 January, 2024

Alternative Fuels

DNV: LNG dominates alternative-fuel vessel orderbook for 2024

According to DNV, LNG was the industry’s alternative fuel of choice by year-end; 264 LNG vessel orders were placed in 2024, over double that of 2023 which was 130 orders.

Published

13 hours ago

January 13, 2025

Admin

The maritime industry’s exceptional newbuilding year 2024 drove a significant rise in orders for alternative-fuelled vessels, according to the latest data from DNV’s Alternative Fuels Insights (AFI) platform.

A total of 515 such ships were ordered, representing a 38% year-on-year increase compared to 2023, underscoring the industry's growing commitment to decarbonization.

The growth in alternative-fuelled vessel orders has been heavily driven by the container and car carrier newbuild boom over the last three years. In 2024, 69% of all container ship orders were for ships capable of being powered by alternative fuels, driven by cargo owners responding to consumer demands for more sustainable practices and liner companies preparing to replace older tonnage. The preferred fuel choice for this segment was LNG (67%). In total the container and car carrier segments made up 62% of all alternative fuel orders in 2024.

Knut Ørbeck-Nilssen, CEO Maritime at DNV, said: “As we work towards decarbonizing the industry, we are encouraged by the growth in alternative fuel vessels over the past few years. While recent figures are promising, we must keep pushing forward.”

“The technological transition is underway, but supply of alternative fuel is still low. As an industry we need to work with fuel suppliers and other stakeholders to ensure that shipping has access to its share of alternative fuels in the future. It is also important that the safety of seafarers is ensured as we make this transition. This will require investment in upskilling and training.”

LNG was not the only fuel on shipowners’ minds as 2024 saw them betting on multiple alternative fuels. 166 methanol orders were added (32% of the AFI orderbook), reflecting shipping’s growing interest in a diverse fuel pool as it strives to reduce greenhouse gas emissions. Most of these methanol orders (85) were in the container segment.

While methanol drove newbuilding orders for alternative-fuelled vessels at the beginning of the year, LNG was the industry’s alternative fuel of choice by year-end. The number of LNG vessel orders placed in 2024 was 264, over double that of 2023 (130).

Ammonia saw promising momentum in the earliest months of the year and continued to grow throughout 2024. A total of 27 orders were placed for ammonia-fueled vessels. The first non-gas carrier ammonia-fuelled vessels orders were placed in 2024 (10), mainly in the bulk carrier segment (5). While still in its early stages, this provides further evidence of ammonia's emergence in the alternative fuel market.

Deliveries and bunkering

The number of LNG-fuelled ships in operation doubled between 2021 and 2024, with a record number of deliveries (169) in 2024. By the end of 2024, 641 LNG-powered ships were in operation. According to the AFI orderbook, this number is expected to double by the end of the decade.

While the bunkering infrastructure for some alternative fuels remains underdeveloped, LNG bunkering is maturing. The number of LNG bunker vessels in operation grew from 52 to 64 over the last year, with continued growth expected in 2025. The significant gap between LNG bunkering supply and demand is expected to widen over the next five years based on the AFI orderbook.

Addressing this challenge by developing the appropriate infrastructure for alternative fuels – both for vessels and bunkering - can create demand signals to stimulate long-term fuel production. With the EU regulatory package, Fit for 55, setting requirements on a large network of ports to have LNG bunkering infrastructure, it is expected that the availability of LNG in ports will increase.

Jason Stefanatos, Global Decarbonization Director at DNV, said: “Market conditions, infrastructure development, fuel production updates, and cargo owners' needs are all shaping the demand for different fuels, both in the short and long term.”

“The shifting trends in LNG and methanol orders this year might be due to the slow development of green methanol production. In the long run, green methanol has potential to be part of the energy mix along with ammonia.”

“In parallel, LNG offers a vital bridging fuel option benefiting from existing infrastructure and short-term emissions reductions while being capable of acting as a long-term solution as well, assuming RNG (Renewable Natural Gas) will be available and provided at a competitive price.”

Photo credit: DNV
Published: 13 January, 2024