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JLC China Bunker Market Monthly Report (January 2022)

14 Mar 2022

Beijing-based commodity market information provider JLC Network Technology Co. recently shared its JLC China Bunker monthly report for January 2022 with Manifold Times through an exclusive arrangement:

Bunker Fuel Demand

Bonded bunker fuel sales drop in January

China’s bonded bunker fuel sales dropped in January because of the holiday for the Chinese New Year and the recurrence of COVID-19 in Ningbo, despite China’s price advantage and fair demand from surrounding countries’ ships.

China’s bonded bunker fuel sales dropped to 1.55 mln mt in January, falling by 12.8% month on month, JLC’s data showed.

Chimbusco and Sinopec sold about 610,000 mt and 660,000 mt of bonded bunker fuel in the month, JLC’s data shows. Bonded bunker fuel sales for SinoBunker and China ChangJiang Bunker (Sinopec) were about 80,000 mt and 35,000 mt, respectively. Suppliers with the Zhoushan license recorded 157,000 mt of sales and those with the Shenzhen license sold 11,000 mt of bonded bunker fuel.

China exported 1.39 mln mt of bonded bunker fuel in December 2021, down 25.23% month on month, the GAC data shows.

The country’s heavy bunker fuel exports were 1.3 mln mt and light MGO exports were 88,100 mt in December 2021, accounting for 93.65% and 6.35%, respectively.

Bonded bunker sales for state-owned enterprises were 1.22 mln mt, accounting for 87.68%. Specifically, bonded bunker fuel sales were 586,300 mt for Sinopec, 568,400 mt for Chimbusco, 40,400 mt for SinoBunker and 21,400 mt for China ChangJiang Bunker (Sinopec). Sales for independent enterprises were 171,000 mt, accounting for 12.33%.

Domestic bunker fuel demand slips in January

Domestic bunker fuel demand edged down in January as trade atmosphere weakened toward the Chinese New Year. As the previous replenishment for rigid demand gradually came to an end, end-users took a wait-and-see attitude toward the market. The demand for domestic-trade heavy bunker fuel was about 330,000 mt in January, down 10,000 mt month on month. The demand for light bunker fuel was 130,000 mt in month, also down by 10,000 mt from December.

Bunker Fuel Supply

Bonded bunker fuel imports plunge in December

China’s bonded bunker fuel imports plunged in December, mainly because of ample supply of domestic low-sulfur resources and low bunker fuel demand in the year end. In addition, traders cut their imports in December as imported fuel still lacked price advantage. The country imported about 406,100 mt of bonded bunker fuel in December, falling by 54.69% month on month and 63.01% year on year, GAC data showed.

Specifically, Singapore ranked first among the suppliers by exporting 199,000 mt of bunker fuel to China, accounting for 49% of the total volume. Imports from the UAE, South Korea and Russia were 85,200 mt, 78,200 mt and 43,600 mt, accounting for 21%, 19% and 11% respectively.

Domestic blended bunker fuel supply flat with December

Chinese blending producers supplied a total of around 340,000 mt of heavy bunker fuel in January 2022, flat with a month before, JLC’s data showed. In north China, the operating rates stayed low with the advent of the Beijing Winter Olympics. Refiners in east China supplied only a small amount of bunker fuel in the month.

Shale oil and light coal tar supply was tight and the overall supply was not adequate. There was rigid demand in the market near the Spring Festival, so blenders based their production on sales. As for light oil, overall supply slipped amid shortage of feedstocks. Domestic light bunker oil supply was about 130,000 mt in January, down by 10,000 mt from the previous month, JLC’s data shows.

Bunker Prices, Profits

Editorial Director
Huang Yuqing

Yvette Luo

Sales (Beijing)
Tony Tang

Sales (Singapore)
Ginny Teo

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.

All rights reserved. No portion of this publication may be photocopied, reproduced, retransmitted, put into a computer system or otherwise redistributed without prior authorization from JLC.


Photo credit: JLC Network Technology
Published: 14 March, 2022

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