Beijing-based commodity market information provider JLC Network Technology Co. recently shared its JLC China Bunker monthly report for January 2024 with Manifold Times through an exclusive arrangement:
Bunker Fuel Demand
China’s bonded bunker fuel sales surge in January
China’s bonded bunker fuel sales spiked in January, mainly because of healthy demand from the shipping sector, as well as increasing supply following the release of LSFO export quotas.
The country recorded about 1.82 million mt of bonded bunker fuel sales in January, with the daily sales up by 17.54% month on month to 58,548 mt, JLC’s data shows.
The sales by Chimbusco and Sinopec (Zhoushan) respectively rose to 580,000 mt and 670,000 mt in the month, while those by suppliers with regional bunkering licenses climbed to 495,000 mt, up from 424,100 mt in December. By contrast, the sales by SinoBunker slid to 40,000 mt in the month, down from 50,000 mt in the previous month. At the same time, China ChangJiang Bunker (Sinopec) sold about 30,000 mt of bonded bunker fuel, unchanged month on month.
China’s bonded bunker fuel exports rally in December 2023
China’s bonded bunker fuel exports rallied in December 2023, because of a relatively low base a month earlier.
The country recorded about 1.59 million mt of bonded bunker fuel exports in the month, jumping by 16.18% month on month, JLC estimated, with reference to data from the General Administration of Customs of PRC (GACC).
Heavy bunker fuel exports amounted to 1.51 million mt in the month, accounting for 94.85% of the total, while light bunker fuel exports settled at 81,900 mt, accounting for 5.15%.
Suppliers with national bunkering licenses exported roughly 1.17 million mt of bonded bunker fuel in the month, accounting for 73.32%, with Sinopec Fuel Oil and Chimbusco taking 67.63%. In the meantime, enterprises with regional licenses exported about 424,100 mt, occupying 26.68%.
The month-on-month increase in the exports was mainly ascribed to a relatively low base in November when Chinese refiners cut their bonded bunker fuel exports to a ten-month low.
However, tighter export quotas and low-sulfur fuel oil (LSFO) supply limited the growth in December’s bonded bunker fuel exports.
On a year-on-year comparison, China’s bonded bunker fuel exports surged by 32.32% in December.
China exported a total of 19.66 million mt of bonded bunker fuel in 2023, growing by 3.06% from the previous year, accelerating from a rise of 1.09% in January-November.


Domestic-trade heavy bunker fuel demand largely stable in Jan
Domestic-trade heavy bunker fuel demand was basically stable in January, when most shipowners based purchase on rigid demand amid overpriced bunker fuel. Domestic-trade heavy bunker fuel demand was estimated at 430,000 mt in the month, largely stable from the previous month, JLC’s data shows.
However, domestic-trade marine gasoil (MGO) demand dwindled to 120,000 mt in the month, down by 10,000 mt or 7.69% month on month, the data also shows. Domestic-trade light bunker fuel demand weakened, as the inland shipping market sagged and downstream restocking shrank with the approach of the Spring Festival.
Bunker Fuel Supply
China’s bonded bunker fuel imports tumble in December
China's bonded bunker fuel imports stood at 315,200 mt in December, a slump of 41.29% month on month and 23.92% year on year, JLC estimated, with reference to data from the General Administration of Customs of PRC (GACC).
Though domestic LSFO output declined further, most distributors continued to cut their imports in the month amid high import costs.
South Korea topped all suppliers by shipping 95,400 mt to China in December, accounting for 30.26% of the latter's total imports, while Malaysia climbed to the second place with 88,600 mt, accounting for 28.11%. Iraq and Japan ranked third and fourth with 86,600 mt and 30,700 mt, making up 27.46% and 9.73% respectively.
Russia slipped to the fifth place with 13,000 mt, occupying 4.12%, while Singapore fell to the sixth place with only 1,000 mt, accounting for 0.32%.
China's bonded bunker fuel imports are expected to move lower in January 2024 because domestic LSFO production will return to normal after the release of the first batch of LSFO export quotas for this year.

Domestic-trade heavy bunker fuel supply increases in January
Domestic-trade heavy bunker fuel supply increased slightly in January, as blenders showed higher production interest amid considerable blending margins. Meanwhile, downstream buyers increased purchases for pre-holiday replenishment, which also prompted blenders to accelerate production. Chinese blenders supplied about 440,000 mt of domestic-trade heavy bunker fuel in the month, up by 10,000 mt or 2.33% from a month earlier, JLC’s data indicates.
On the contrary, domestic-trade marine gasoil (MGO) supply came in at 140,000 mt in the month, a monthly decline of 10,000 mt or 6.67%, the data shows. Refineries’ production enthusiasm was relatively low when MGO prices dropped in tandem with falling diesel prices.

Bunker Prices, Profits



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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.
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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 earlier periods are available here.
Photo credit: JLC Network Technology
Published: 9 February 2024