Beijing-based commodity market information provider JLC Network Technology Co. recently shared its JLC China Bunker monthly report for May 2021 with Manifold Times through an exclusive arrangement:
Bunker Fuel Demand
Bonded bunker fuel sales fall in July
China’s bonded bunker fuel sales dropped slightly to 1.54 mln mt in July, JLC data showed. The local government at Zhoushan prohibited the bonded bunkering operation at night amid the big events of CPC, which directly drove down the bunkering sales. The bunkering volume at some ports was limited by typhoon and heavy rain in late July. What’s more, the resurgence of Covid-19 cases at some regions resulted in stricter control measures. Chimbusco and Sinopec sold about 630,000 mt and 650,000 mt of bonded bunker fuel, respectively. Bonded bunker fuel sales were about 80,000 mt for SinoBunker and 20,000 mt for China ChangJiang Bunker (Sinopec). New enterprises in the China (Zhejiang) Pilot Free Trade Zone sold 158,000 mt.
China’s bonded bunker fuel exports in June 2021 were 1.76 million mt, up by 7.97% month on month, according to GAC data. The bunkering demand at southern ports declined amid the resurgence of Covid-19 and the supply from refiners was stable. China exported 1.66 million mt of heavy bunker fuel and 101,000 mt of light bunker fuel in June.
Bonded bunker sales for state-owned enterprises and Zhoushan enterprises were 1.60 mln mt and 158,100 mt, accounting for 91.02% and 8.98%. Specifically, bonded bunker fuel sales were 917,700 mt for Sinopec, 605,700 mt for Chimbusco, 63,000 mt for SinoBunker, 16,200 mt for China ChangJiang Bunker (Sinopec).
Domestic bunker fuel demand slips in July
Domestic bunker fuel demand inched down in July. The demand from the bulk market and the shipping sector was low due to the influence of the centenary celebration of the CPC and typhoon despite the support of increasing international crude prices. End users’ consumption of domestic-trade heavy bunker fuel was about 350,000 mt in the month, down by 20,000 mt from the previous month. The typhoon in East China as well as resurgence of Covid-19 cases had a negative influence on the shipping market. The demand for light bunker fuel was 120,000 mt in July, down by 10,000 mt from the previous month.
Bunker Fuel Supply
Bonded bunker fuel imports slip in June
China’s bonded bunker fuel imports were 618,000 mt in June, down by 26.42% month on month and 55.6% year on year, GAC data showed.
China’s bonded bunker fuel imports slumped in June. For one thing, domestic LSFO output rose significantly, given the better profits. For another, the import resources had no price advantage.
Specifically, the largest import source for China was still Malaysia with 466,600 mt of bunker fuel. Imports from Singapore and South Korea were 99,800 mt and 51,600 mt respectively.
Domestic blended bunker fuel supply inches down in July
Chinese blending producers supplied a total of around 360,000 mt of heavy bunker fuel in July, down by 10,000 mt or 2.7% from June, JLC data showed. Low-sulfur residue oil in North and East China reduced in July due to the transportation restrictions during the centenary celebration of the CPC. Shale oil supply was stable. Light coal tar and coal-based diesel prices remained high under the strong demand in deep-processing field. Heavy bunker fuel supply inched down amid the high feedstock prices and waned purchase interest of blenders. Domestic light oil supply was about 140,000 mt in July, down by 10,000 mt from the previous month.
Bunker Prices, Profits
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 Co., Ltd
Published: 17 August, 2021
Additional topics of bunker contamination and OCM services discussed at VPS’ Fuel Management Challenges – The Year of 2021 & Beyond webinar on 23 September; Manifold Times summarises the session.
‘The JMs have failed to discharge their duties by blindly helping the Banks mount a false case against the Defendant,’ wrote defence lawyers representing former IPP Director Dr Goh Jian Hian in court statement.
Lead prosecutor Andreas Myllerup Laursen aims for a fine and a prison sentence in the so-called Syria case scheduled to commence in Odense, Denmark on 26 October, writes the Danish publication.
In a modern re-telling of the story of David versus Goliath, local bunker barge owners/charterers successfully resisted claims brought in the Singapore courts by Phillips 66 for misdelivery of bunkers.
Bunker barge owners and operators; traders and suppliers; banks, including players in other countries, will have to re-examine respective operations, advises Helmsman Associate Director Jonathan Tan.
Vopak BL was a non-essential document with no contractual force and had no effect as a contract of carriage or as a document of title, states written Judgement issued by Singapore Court of Appeal.