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JLC China Bunker Market Monthly Report (January 2021)

China’s bunker fuel sales dipped in January but firm transport demand and rising bunker fuel prices sparked buying interest and lent some support to sales, it said.

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Beijing-based commodity market information provider JLC Network Technology Co. on Tuesday (9 February) shared its JLC China Bunker monthly report for December with Manifold Times through an exclusive arrangement:

JLC China Bunker Market Monthly Report (January 2021)

Highlights

 Demand and Supply

Bunker Fuel Demand

Bonded bunker fuel sales slip in January

In January, China’s bonded bunker fuel sales dipped to 1.36 million mt, JLC data showed. Sales were still high, despite a mild drop. Firm transport demand and rising bonded bunker fuel prices sparked end-users’ buying interest and lent some support to sales of bonded bunker fuel oil. Chimbusco and Sinopec sold about 582,000 mt and 508,300 mt of bonded bunker fuel, respectively. Bonded bunker fuel sales were about 53,900 mt for SinoBunker and 31,700 mt for China ChangJiang Bunker (Sinopec). New enterprises in the China (Zhejiang) Pilot Free Trade Zone sold 180,600 mt.

China’s bonded bunker fuel sales jumped to 2.61 million mt in December, up by 94.36% month on month, according to GAC data. In December, bonded bunker fuel suppliers ramped up sales to meet annual sales targets. Besides, a large number of bonded bunker fuel oil produced by Sinopec refineries was loaded into bonded warehouses in the month. Specifically, bonded bunker fuel sales were 1.25 million mt for Sinopec, 1.02 million mt for Chimbusco, 85,000 mt for SinoBunker, 50,300 mt for China ChangJiang Bunker (Sinopec) and 205,000 mt for new enterprises in the China (Zhejiang) Pilot Free Trade Zone. China’s bonded bunker fuel sales in 2020 surged by 4.76 million mt or 39.79% year on year to 16.72 million mt, GAC data shows.

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Domestic bunker fuel demand grows in January

Domestic bunker fuel demand climbed in January. End users’ consumption of domestic-trade heavy bunker fuel was about 370,000 mt in the month, up by 20,000 mt from the previous month. The demand for light bunker fuel was 130,000 mt in January, flat from December. Demand gained some support from rising international crude prices. As the Chinese New Year holiday was approaching, downstream users replenished stocks, but less than expected amid a better demand season. In addition, traders held caution as the virus resurged. Trades were limited despite increasing inquiries from end-users.

Bunker Fuel Supply

Bonded bunker fuel imports drop 2.85% in December

China’s bonded bunker fuel imports were 1.10 million mt in December, a drop of 2.85% month on month and a fall of 46% year on year, GAC data showed. Demand was still high in December. As domestic production fell behind demand, despite a rally in production, bonded bunker fuel distributors still had to import bunker fuel to meet demand.

Specifically, the largest import source for China was still Malaysia with 641,000 mt of bunker fuel. Imports from Singapore, South Korea and the UAE were 172,000 mt, 99,000 mt and 84,000 mt respectively. The imports were 68,000 mt and 34,000 mt respectively from Russia and Thailand.

China’s bonded bunker fuel imports were 12.24 million mt in 2020, a drop of 14.2% year on year, GAC data showed.

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Domestic blended bunker fuel supply stable in January

Chinese blending producers supplied a total of around 380,000 mt of heavy bunker fuel in January, flat from December, JLC data showed. In January, low-sulfur residue oil supply tightened. The supply in the northern region was affected by the resurging virus. Residue oil supply in East China reduced, leading to insufficient blendstock supply in the market. Blenders in South China relied on purchases from the northeastern region or Shandong. Most of them kept their inventories low and stabilized their supply. Light bunker fuel supply was about 140,000 mt, flat from December as refiners kept high operating rates amid increasing refining margins.

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Bunker Prices, Profits

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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 (December, 2020)
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: 10 February, 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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