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.


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.

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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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