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)
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.
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.
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.
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.
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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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