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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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Environment

Singapore, Indonesia and Malaysia conduct table-top exercise to strengthen oil spill response

Exercise focused on several aspects including collaboration between government agencies and oil spill response firms to optimise oil spill response resources for incidents in Straits of Malacca and Singapore.

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The Maritime and Port Authority of Singapore (MPA) on Tuesday (11 February) conducted a table-top exercise (TTX) with Indonesia and Malaysia to enhance regional coordination and strengthen response capabilities for oil spills. The exercise brought together over 20 representatives from MPA, Indonesia’s Directorate General of Sea Transportation, Malaysia’s Environment Department, and oil spill response experts from ITOPF. As part of Singapore’s chairmanship of the Revolving Fund Committee (RFC) from April 2022 until March 2027, MPA led the TTX to foster collaboration between the littoral States of Indonesia, Malaysia and Singapore. The RFC, established through a memorandum of understanding (MOU) between the three littoral States and the Malacca Strait Council (MSC) in 1981, is a funding mechanism allowing each littoral State to draw cash advance from the Fund to combat oil spill from ships in the Straits of Malacca and Singapore (SOMS). The exercise focused on coordination procedures to ensure swift and clear communication between the littoral States during an oil spill incident, rapid deployment of oil spill response assets by the littoral States, and collaboration between government agencies and oil spill response companies to optimise oil spill response resources for incidents in the SOMS. The response strategies and asset deployment plans tested during the TTX will be exercised during a Ground Deployment Exercise between the three littoral States and ITOPF in 2026. Photo credit: Maritime and Port Authority of Singapore Singapore, Indonesia and Malaysia conducts table-top exercise to strengthen oil spill response

The Maritime and Port Authority of Singapore (MPA) on Tuesday (11 February) conducted a table-top exercise (TTX) with Indonesia and Malaysia to enhance regional coordination and strengthen response capabilities for oil spills. 

The exercise brought together over 20 representatives from MPA, Indonesia’s Directorate General of Sea Transportation, Malaysia’s Environment Department, and oil spill response experts from ITOPF.

As part of Singapore’s chairmanship of the Revolving Fund Committee (RFC) from April 2022 until March 2027, MPA led the TTX to foster collaboration between the littoral States of Indonesia, Malaysia and Singapore. 

The RFC, established through a memorandum of understanding (MOU) between the three littoral States and the Malacca Strait Council (MSC) in 1981, is a funding mechanism allowing each littoral State to draw cash advance from the Fund to combat oil spill from ships in the Straits of Malacca and Singapore (SOMS).

The exercise focused on coordination procedures to ensure swift and clear communication between the littoral States during an oil spill incident, rapid deployment of oil spill response assets by the littoral States, and collaboration between government agencies and oil spill response companies to optimise oil spill response resources for incidents in the SOMS.

The response strategies and asset deployment plans tested during the TTX will be exercised during a Ground Deployment Exercise between the three littoral States and ITOPF in 2026.

 

Photo credit: Maritime and Port Authority of Singapore
Published: 12 February, 2025

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LNG Bunkering

South Korea’s HJSC scores LNG bunkering vessel order from H-Line Shipping

HJ Shipbuilding & Construction has secured its first order of the year with a contract worth KRW 127.1 billion (USD 87.6 million) to build an 18,000㎥ LNG bunkering vessel for H-Line Shipping.

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South Korean HJSC scores LNG bunkering vessel order from H-Line Shipping

HJ Shipbuilding & Construction (HJSC) has secured its first order of the year with a contract worth KRW 127.1 billion (USD 87.6 million) to build an 18,000㎥ LNG bunkering vessel for H-Line Shipping. 

The contracted vessel is a large-scale LNG bunkering ship measuring 144 meters in length, 25.2 meters in width, and 12.8 meters in depth. It is capable of supplying up to 18,000㎥ of LNG in a single operation to LNG-fuelled ships. 

Equipped with two independent LNG tanks certified by the International Maritime Organization (IMO), the vessel features a dual-fuel propulsion system that allows it to operate on both eco-friendly LNG and marine diesel oil. This advanced system ensures both stability and operational efficiency while effectively reducing carbon emissions.

Yoo Sang-cheol, CEO of HJSC, said, “As global LNG demand and supply continue to grow, the LNG bunkering vessel market will see steady expansion.” 

“We will focus on strengthening our expertise in building eco-friendly, high-value-added ships, securing a competitive edge that aligns with our legacy as a leader in shipbuilding.”

This achievement follows the company's success in 2014 when it built the world’s first 5,100㎥ LNG bunkering vessel for Japan’s NYK Line.

“This accomplishment also reinforces South Korea’s shipbuilding industry's efforts to enhance competitiveness by securing high-efficiency, environmentally friendly vessels in the global market,” HJSC said. 

“Notably, with the anticipated expansion of oil and natural gas drilling and the resumption of LNG exports under the second Trump administration in the US, the market for crude oil carriers, LNG carriers, and LNG bunkering vessels is expected to see significant growth.”

“This trend is likely to benefit the country’s highly competitive shipbuilding industry.”

 

Photo credit: HJ Shipbuilding & Construction
Published: 12 February, 2025

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Bunker Fuel

AMSOL tanker “Uhambo” commences offshore bunkering operations in Algoa Bay

Firm announced that its product tanker Uhambo has started offshore bunkering operations in Algoa Bay, signalling that the service has resumed in the maritime bay of South Africa.

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AMSOL tanker “Uhambo” commences offshore bunkering operations in Algoa Bay

Marine services provider AMSOL recently announced that its product tanker Uhambo has started offshore bunkering operations in Algoa Bay, signalling that the service has resumed in the maritime bay in South Africa.  

“Now flying the South African flag and an important platform for the ongoing training and development of tanker-endorsed South African seafarers, the Uhambo has commenced offshore bunkering operations in Algoa Bay, delivering locally refined marine fuel on behalf of its oil industry client,” the company said in a statement shared with Manifold Times

In November 2024, the South African Revenue Services (SARS) released new protocols including amendments under sections 21, 60, and 120 of the Customs and Excise Act. Some amendments pertain to the storage of imported bonded fuel goods in designated customs and excise storage warehouses.

SARS' move was anticipated to facilitate bunkering to resume off Algoa Bay, which has been shut down since September 2023

AMSOL’s Chief Commercial Officer Graham Dreyden, said: “Our ability to comply with stringent operating regulations and legislation as well as international maritime and marine standards underpins AMSOL’s track record.”

“This is the case for operations in Algoa Bay and we have worked closely with authorities and relevant stakeholders to ensure all legislative requirements for offshore bunkering operations are met.”

AMSOL’s CEO Dan Ngakane said he is positive about the growth of the company and its broader impact. 

“We have acquired five vessels in the last 4 years in order to meet the needs of our clients in the region for reliable and professional, risk managed marine solutions,” he said.

“In leading growth in the South African maritime sector, we remain committed to meeting the highest standards for environmental protection, safety and compliance whilst developing the talent required to keep our industry growing and moving forward.”

AMSOL said it is the only marine services business operating in the region with a proven track record in effective management of risk-mitigated fuel transfers through a portfolio of services that include in-port bunker delivery, offshore bunkering, ship-to-ship fuel transfer services and offshore terminal management.

Related: ENGINE: SARS releases final rules for South Africa’s offshore bunkering
Related: SARS seeks public comments on amendments to bonded bunker fuel storage regulations
Related: South African Revenue Service issues media statement on detention of bunkering vessels
Related: ENGINE: Algoa Bay bunkering at a standstill as authority detains barges – sources
Related: ENGINE: Algoa Bay closure spurs surge in bunker calls at nearby ports

 

Photo credit: AMSOL
Published: 12 February, 2025

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