Business

JLC China Bunker Market Monthly Report (July 2022)

China’s bonded bunker fuel sales rebounded in July when domestic supply tightness eased and more bonded bunker suppliers launched business, JLC data showed.

Published

2 years ago

August 25, 2022

Admin

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

Bunker Fuel Demand

Bonded bunker fuel sales rebound in July

China’s bonded bunker fuel sales rebounded in July when domestic supply tightness eased and more bonded bunker suppliers launched business.

The country’s bonded bunker fuel sales settled at around 1.68 mln mt in the month, a rally of 8.38% from June, JLC’s data shows.

Domestic supply increased as Chinese refineries’ production of LSFO surged in July. In addition, China National Offshore Oil Corporation (CNOOC) Sales (Shenzhen) Co., Ltd. started to supply bonded bunker fuel oil in July.

Chimbusco and Sinopec Zhoushan sold about 620,000 mt and 680,000 mt of bonded bunker fuel in July, JLC’s data indicates. Bonded bunker fuel sales for SinoBunker and China ChangJiang Bunker (Sinopec) were about 90,000 mt and 40,000 mt, respectively. Around 250,000 mt of of sales were made by suppliers who held local licenses, with PetroChina accounting for roughly 79,000 mt.

China’s bonded bunker fuel exports moved higher in June as the country further raised its LSFO production. The country exported about 1.51 million mt of bonded bunker fuel in June 2022, rising 2.37% from a month earlier, according to data from the General Administration of Customs of PRC (GACC).

Among these exports were roughly 1.41 million mt of heavy bunker fuel and 103,800 mt of light marine gas oil (MGO), accounting for 93.14% and 6.86% respectively.

Bonded bunker fuel exports by state-owned enterprises amounted to approximately 1.32 million mt in the month, accounting for 86.95%, while those by independent enterprises were 197,400 mt, accounting for 13.05%, the data indicates.

On a year-on-year comparison, the bonded bunker fuel exports fell by 14.10%, GACC data indicates.

Domestic bunker fuel demand grows moderately in July

Domestic bunker fuel demand grew modestly in July when high temperatures at coastal regions caused more power consumption and fuel shipment.

The demand for domestic-trade heavy bunker fuel was around 400,000 mt in the month, growing by 80,000 mt or 25% month on month. Meanwhile, demand for light bunker fuel stabilized at roughly 150,000 mt, depressed by high prices.

Bunker Fuel Supply

Bonded bunker fuel imports hit 7-month high

China’s bonded bunker fuel imports leaped sharply and hit a 7-month high in June as domestic supply remained tight and Chinese suppliers’ stockpile was still low despite an increase in LSFO production.

China imported about 517,400 mt of bonded bunker fuel in June 2022, jumping 46.07% month on month, according to the data from the General Administration of Customs of PRC (GACC).

Though China ramped up its LSFO production in the month, the aggregate supply stayed relatively tight and failed to meet domestic demand. Most traders maintained low inventories amid insufficient supply and relatively abundant demand. Additionally, certain dealers who were optimistic about LSFO prices boosted their procurement of imported low-sulfur resources in the month with an expectation of rising bunker fuel prices in the short term.

In terms of the supplier, Malaysia overtook the UAE and ranked in the top position by exporting 277,800 mt of bonded bunker fuel to China, taking up 54% of China’s total bonded bunker fuel imports. The UAE slipped to second place with 180,600 mt, accounting for 35%. The followings were South Korea and Russia, with 41,000 mt from South Korea and 18,000 mt from Russia, accounting for 8% and 3% respectively. There was no imported bonded bunker fuel from Singapore during the month as the country’s LSFO supply continued to tighten and the supply of high-sulfur bunker fuel oil was affected by the contamination issue.

Despite a monthly surge in June, however, the bonded bunker fuel imports saw a drawdown from a year earlier, mainly as a result of softer demand amid the epidemic outbreaks. On a year-on-year comparison, the bonded bunker fuel imports dropped 16.28% in the month, GACC data indicates.

China tallied an accumulation of 2.45 million mt of imported bonded bunker fuel in the first half of this year, shrinking by more than a half from the first six months of 2021, GACC data also shows.

Domestic blended bunker fuel supply extends gains in July

Chinese blenders supplied around 450,000 mt of heavy bunker fuel in total in July 2022, a rise of 70,000 mt or 18.4% from the previous month, JLC’s data shows.

In detail, the supply of low-sulfur asphalt, an important blendstock for heavy bunker fuel, increased in July when refineries’ operating rates climbed. Meanwhile, demand for coal-based diesel grew because of lower prices, and the supply of and demand for shale oil and light coal tar were largely balanced.

In contrast to the rise in heavy bunker fuel supply, the domestic marine gas oil (MGO) supply slipped to around 160,000 mt in the month, down by 10,000 mt or 5.88% from June.

Despite lower feedstock cost, blending margins were still low in July and blenders based their blending on rigid demand.

Bunker Prices, Profits

Editor
Yvette Luo
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Sales (Beijing)
Tony Tang
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Sales (Singapore)
Ginny Teo
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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.

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 that period is available here.

Photo credit: JLC Network Technology
Published: 25 August, 2022

Biofuel

Argus Media: Bunkering sector needs deeper dive into B24 bio bunker fuel market

‘As we advance into 2025, the need to understand how B24 matures in terms of market fundamentals, pricing and dynamics will be a key indicator for the marine sector,’ says Mahua Chakravarty of Argus.

Published

18 hours ago

October 4, 2024

Admin

Argus Media organises free admission ‘Argus Asia B24 Forum’ for bunkering sector

Ahead of Argus Asia B24 Forum, Manifold Times interviewed Mahua Chakravarty, Head of Marine Fuels Pricing (Asia) of independent global energy and commodity market intelligence provider Argus Media; she explains the growing prominence of B24 bunker fuel in the marine sector and believes it is imperative for the bunkering sector to deepen its knowledge on it:

MT: Why is it important for the bunkering sector to know more about the B24 bunker fuel market?

B24 has emerged as the first alternative marine fuel that allows ship-owners and charterers a drop-in fuel option, and make greenhouse gas (GHG) savings, for their voyages into EU and territorial waters.

It has proved to be the most practical solution for ship-owners that eliminates costly retrofitting charges. The easy availability of used cooking oil methyl ester (UCOME) as a blendstock from China and southeast Asia, also adds to its overall attractiveness as an alternative fuel.

B24 consumption in the port of Singapore recorded multi-fold jumps to touch 518,000t in 2023 as ship-owners fuelled for trials in preparation for the implementation of EU-led mandates like the EU Emissions Trading Scheme (ETS) and the Carbon Intensity Index (CII) rating. In 2024, B24 demand has continued to grow with 377,800t of consumption seen up to August, according to statistics from the Maritime and Port Authority of Singapore (MPA).

As we advance into 2025, the need to understand how B24 matures in terms of market fundamentals, pricing and dynamics will be a key indicator for the marine sector. Being the first generation of new marine fuels, B24 has shown the way that biofuel blends can provide a solution for ship-owners/charterers to meet compliance mandates set by the EU and IMO.

MT: Why has Argus developed its own B24 Singapore price index? What's so special about it and why should the industry adopt it as a benchmark?

Argus was the first to launch its spot B24 delivered on board (DOB) Singapore assessment in January 2023, thus introducing price discovery for this market at its point of inception. The past 1.5 years of daily price assessments of B24, using a robust market survey approach, has built Argus’ understanding of this market from the start.

We have seen the growth of liquidity and the quest among refiners, traders, ship-owners to find pricing solutions for a nascent market. We have been at the forefront of capturing spot liquidity growth and in assessing prices for this market.

This index is now considered a key price assessment by key refiners, traders, ship-owners and other stakeholders in the market.

MT: What takeaways can each segment of the bunkering sector such as bunker buyers, bunker traders, and shipowners receive from the upcoming Argus B24 forum?

The Argus B24 Asia Forum is aimed at showcasing some of these learnings by a global team that covers key markets like Singapore, China and Europe. Our global team will present their insights on the key trends driving demand for marine biodiesel globally.

As the marine sector marches onwards with the bunkering of higher biofuel blends, this forum will allow the audience to reflect on the key factors that have driven the marine biodiesel sector. It will provide insights to make better decisions about infrastructure, pricing, feedstock-related issues and what blends are likely to be prevalent in the coming year.

We will be hosting a panel discussion at this forum that will include key players driving the marine biodiesel space in Singapore and other regions.

The Argus Asia B24 Forum will be held in The Village Hotel (The Events Centre by Far East Hospitality), Sentosa, Singapore (Google Maps) on 8 October between 4.00pm to 7.00pm Singapore Time.

Participants are encouraged to register for the free event via the custom link here.

Photo credit: Argus Media
Published: 4 October 2024

Bunker Fuel

Brazil: Raízen launches new bunkering operation in Itaqui

Operation will support both coastal and oceangoing vessels at Off Port Limits, allowing the firm’s customers to avoid full port call fees and unnecessary deviations, says Paula Georgopoulos Tinoco.

Published

18 hours ago

October 4, 2024

Admin

Brazil: Raízen launches new bunkering operation in Itaqui

Brazilian energy firm Raízen has launched its new bunkering operation in Itaqui at the Outer Anchorage Area, according to Paula Georgopoulos Tinoco, Bunker Sales Coordinator at Raízen on Wednesday (3 October).

The firm is providing local supplies for the grades VLSFO380 (max. 0.5%S) and LSMGO DMA (max. 0.1%S).

“The new bunkering operation will support both coastal and oceangoing vessels with different sizes and class at the Off Port Limits, allowing our customers to avoid full port call fees and unnecessary deviations at different bunkering ports,” she said in a social media post.

In September last year, Bunker Holding subsidiary Bunker One announced that it partnered with Acelen, the largest bunker producer in the Brazilian state of Bahia, to offer the only outer anchorage bunkering operation in Brazil at the time.

Starting September 2023, vessels such as large cargo ships and tankers can be supplied in the anchorage area of the Port of Itaqui in São Marcos Bay (MA).

Photo credit: Raízen
Published: 4 October, 2024

Business

Rahim Oberholtzer named as new Infineum Chief Financial and Strategy Officer

Oberholtzer, a finance executive with over 25 years of experience, joins Infineum from Shell, where he has held various senior positions including Senior Vice President of Shell Finance for Chemicals and Products.

Published

18 hours ago

October 4, 2024

Admin

Rahim Oberholtzer named as new Infineum Chief Financial and Strategy Officer

International fuel additives company Infineum on Thursday (3 October) announced the appointment of Mr. Rahim Oberholtzer as the new Chief Financial and Strategy Officer, effective 1 October.

Oberholtzer will succeed Mr. Philippe Creteur, who has retired at the end of September 2024, after 18 years of dedicated service to Infineum.

Oberholtzer, a seasoned finance executive with over 25 years of diverse experience, joins Infineum from Shell, where he has held various senior positions. His most recent role was Senior Vice President of Shell Finance for Chemicals and Products.

During his career, Oberholtzer has acquired extensive expertise in public accounting, investment banking, and trading. He began his professional journey at KPMG in San Francisco as an auditor. He then moved on to Merrill Lynch, focusing on mergers and acquisitions and equity offerings within the energy sector, ultimately serving as Head of Structured Finance at Merrill Lynch Commodities.

In 2011, he joined Shell’s Mergers and Acquisitions team in the U.S., leading key projects such as the launch of Shell Midstream Partners and the Eagle Ford divestment. He subsequently managed finance teams in Trading & Supply, covering European Gas & Power, Global Crude, and Global Products & Operations.

Infineum CEO Aldo Govi, said: “We are deeply grateful for Philippe’s years of dedication and excellent contribution to Infineum. At the same time, I am thrilled to welcome Rahim to our corporate leadership team.”

Photo credit: Infineum
Published: 4 October, 2024