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JLC China Bunker Market Monthly Report (July, 2020)

In June, bunker fuel prices in Malaysia and Singapore weakened compared with domestic prices and incentivised distributors to make large purchases, reports JLC.

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Beijing-based commodity market information provider JLC Network Technology Co. on Thursday (13 August) shared its JLC China Bunker monthly report for July with Manifold Times through an exclusive arrangement:

JLVJLC China Bunker Market Monthly Report (July, 2020)

Highlights

Demand and Supply

Bunker Fuel Demand

Bonded bunker fuel sales rise in July on better demand

In July, China’s bonded bunker fuel sales grew to about 1.36 million mt, versus 1.18 million mt in June, JLC data showed. Demand for bonded bunker fuel improved in July as the shipping market recovered with better control of the virus in some parts of the world. Idle freight capacity was activated upon receding impacts of the virus and demand for containers transport improved markedly. Meanwhile, sales of bonded bunker fuel were driven up by strong demand for iron ore recently amid positive sentiment. Chimbusco and Sinopec sold about 502,000 mt and 635,000 mt of bonded bunker fuel, respectively. Bonded bunker fuel sales were about 100,000 mt for SinoBunker, 12,000 mt for China ChangJiang Bunker (Sinopec) and 22,000 mt for CNPC-TAFO. New enterprises in the China (Zhejiang) Pilot Free Trade Zone sold 85,000 mt.

China’s bonded bunker fuel sales climbed to 1.29 million mt in June, up by 3.3% month on month, according to GAC data. In June, bonded bunker fuel prices rose, fueled by improving sentiment. In addition, domestic ports were overwhelmed by congestion and tankers had difficulties unloading. As end-user demand improved, freight capacity tightened, leading to higher freight rates. Meanwhile, the shipping market rebounded slightly as governments of different countries adopted a series of policies to stimulate economic recovery, further supporting a modest increase in bonded bunker fuel sales in June. Specifically, bonded bunker fuel sales were 607,000 mt for Sinopec, 486,000 mt for Chimbusco, 96,000 mt for SinoBunker, 8,800 mt for China ChangJiang Bunker (Sinopec), 16,000 mt for CNPC-TAFO and 79,000 mt for new enterprises in the China (Zhejiang) Pilot Free Trade Zone.

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Domestic bunker fuel demand slides in July

Domestic bunker fuel demand dropped in July. As the rainy season in the southern region extended, bulk demand reduced significantly in July and the shipping market stayed sluggish. Although the rainy season receded since the middle of the month, the bulk market’s support from the hot weather for a short period was not firm. Demand for coal did not improve much with a lack of boost to the shipping market. End users’ consumption of domestic-trade heavy bunker fuel was about 260,000 mt in the month, down by 20,000 mt or 7.14% from the previous month. The demand for light bunker fuel was 90,000 mt in July, down by 5,000 mt from June on thin trades amid frequent rains.

Bunker Fuel Supply

Bonded bunker fuel imports drop 10.36% in June

China’s bonded bunker fuel imports were 1,392,000 mt in June, a decline of 10.36% month on month and a rise of 36.33% year on year, GAC data showed. In June, bunker fuel prices in Malaysia and Singapore weakened, compared with domestic bunker fuel prices. The cost-effectiveness of bunker fuel from these countries continued to incentivize domestic bonded fuel distributors to make large purchases. Besides, some early cargoes of bonded bunker fuel imports delayed arrivals to June. Therefore, China’s bonded bunker fuel imports in June were relatively high, despite a month-on-month slip.

Specifically, the largest import source for China was still Malaysia with 770,000 mt of bunker fuel, followed by Singapore with 279,000 mt. The imports were 123,000 mt from South Korea, 90,000 mt from UAE and 60,000 mt from Bahamas. Besides, imports from Japan and Thailand totaled 69,000 mt.

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Domestic blended bunker fuel supply dips in July

Chinese blended producers supplied a total of around 330,000 mt of heavy bunker fuel in July, a drop of 10,000 mt or 2.94% month on month, JLC data showed. Feedstock costs were stable to lower due to slim downstream demand, despite a tight supply of low-sulfur residue oil. Domestic bunker fuel prices stayed low amid a weak coastal bulk market and tepid end-user demand. Although blending profits increased, blended producers were reluctant to boost supply and most of them mainly supplied to buyers with contracts and operated with low stocks. Therefore, domestic blended bunker fuel supply in July slipped. Light bunker fuel supply was about 90,000 mt, down by 10,000 mt from June. Despite rising international crude prices, light bunker fuel supply stayed low amid slack sentiment.

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JLC Network Technology Co., Ltd is recognised as the leading information provider in China. We specialise in providing transparent, high-value. authoritative market intelligence and professional analysis in commodity markets. Our expertise covers oil, gas. coal, chemical, plastic, rubber. fertilizer and metal industry, etc.

JLC China Bunker Oil Market Monthly Report is published by JLC Network Technology Co., Ltd every month on China bunker market’s, demand, supply, margin, freight index. forecast and so on. The report provides full-scale & concise insight into China’s 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 Co., Ltd
Published: 14 August, 2020

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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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