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
1 year agoon
By
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
+86-020-38834382
[email protected]
Sales (Beijing)
Tony Tang
+86-10-84428863
[email protected]
Sales (Singapore)
Ginny Teo
+65-31571254
[email protected]
[email protected]
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.
Related: JLC China Bunker Market Monthly Report (June 2022)
Related: JLC China Bunker Market Monthly Report (May 2022)
Related: JLC China Bunker Market Monthly Report (April 2022)
Related: JLC China Bunker Market Monthly Report (March 2022)
Related: JLC China Bunker Market Monthly Report (February 2022)
Related: JLC China Bunker Market Monthly Report (January 2022)
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
Methanol
Marine Fuels 360: Methanol presents easiest path towards maritime decarbonisation, says DNV
Captain Singh was confident the bunkering infrastructure in Singapore will be ready to welcome methanol-fuelled vessels due to the coordinated efforts between various agencies.

Published
8 hours agoon
December 6, 2023By
Admin
The use of methanol as a bunker fuel presents the least path of resistance towards maritime decarbonisation, believes the Principal Consultant, Head, Research and Development, Maritime Advisory, SE Asia, Pacific, and India at classification society DNV.
Captain Satinder Singh Virdi was speaking amongst panellists in the Methanol Panel session at Marine Fuels 360 on Tuesday (28 November) when he offered an opinion about reasons behind the increasing awareness of methanol as a marine fuel.
“The ease of adopting methanol is perhaps one of the reasons. The product exists as a liquid at ambient temperature and has been carried on vessels for the last 80 years, so it is not something new,” he stated.
“What is new is we're going to use methanol as a bunker fuel. Ease of adoption, ESG compliance, as well as getting closer to decarbonisation goals are the drivers for shipowners adopting methanol.”
According to Captain Singh, the trend for methanol-fuelled newbuildings have continued in October where DNV’s Alternative Fuels Insight (AFI) platform recorded 230 vessels on order where 156 comprises of containerships.
“The trend started when Maersk increased their newbuild order of methanol-fuelled vessels; before that it was mostly LNG as an alternate fuel,” he said.
Captain Singh was confident the bunkering infrastructure in Singapore will be ready to welcome methanol-fuelled vessels due to the coordinated efforts between the Singapore Shipping Association, Maritime and Port Authority of Singapore, Global Centre for Maritime Decarbonisation, and other organisations.
“We are all working together to support Singapore’s future maritime operations. Singapore is an international maritime centre, and we want to establish ourselves as the leading maritime city,” he explained.
“I would call this a cohesive action by all relevant partners, such as shipowners, charterers, classification societies, ship managers, bunker testing firms, mass flow meter manufacturers, bunkering companies, and more.
“It is important for Singapore to be seen as a fair supporter of bunkering in terms of reliability and reputation, and if things go wrong actions are taken very strictly to ensure transparency and quality. So, in that way I am satisfied to say that ‘yes’ we have what it takes to make methanol bunkering happen.”
Related: DNV: Methanol-fuelled order trend continues, with first ammonia DF newbuilding contracts recorded in Oct
Related: Maersk invests USD 700.3 million for additional four methanol-fuelled container newbuilds
Other related: Singapore: Equatorial Marine Fuel builds four “new generation” methanol-ready bunker tankers
Other related: MPA: Due diligence carried out prior to recent Singapore methanol bunkering pilot
Other related: VPS completes quantity survey on Singapore’s first methanol bunkering op
Other related: The Methanol Institute: Singapore takes first-mover advantage in Asia with methanol bunkering pilot
Other related: Singapore bunkering sector enters milestone with first methanol marine refuelling op
Other related: Singapore gets ready for its first methanol bunkering this week after one year preparation
Other related: The Methanol Institute: Singapore takes first-mover advantage in Asia with methanol bunkering pilot
Photo credit: Informa
Published: 6 November 2023
Crime
Malaysia: MMEA detains three vessels for illegal anchoring in East Johor waters
Vessels, including those registered in Barbados and Copenhagen, were detained on 4 December and captains of ships had failed to present any document of authorisation to anchor in Malaysian waters.

Published
8 hours agoon
December 6, 2023By
Admin
The Malaysian Maritime Enforcement Agency (MMEA) on Tuesday (5 December) said three vessels have been detained for illegally anchoring in East Johor waters on 4 December.
MMEA Tanjung Sedili Zone acting director Maritime Cmdr Mohd Najib Sam said the first ship, registered in Port Klang, was detained by a patrol boat at 11.30 am at 19.8 nautical miles east of Tanjung Sedili Kechil.
The second ship, registered at Bridgetown in Barbados, anchored at 11.30am at 18.1 nautical miles northeast of Tanjung Penawar.
And the third ship, registered at Copenhagen, was detained by a MMEA patrol vessel at 5.30pm at 21.5 nautical miles east of Tanjung Balau.


Najib said all captains of the ships had failed to present any document of authorisation to anchor in Malaysian waters and the case will be investigated under Section 491B(1)(L) Merchant Shipping Ordinance 1952.
He added that the detention of all three ships has brought the total number of ships detained for the same offence so far this year to 86.
Photo credit: Malaysian Maritime Enforcement Agency
Published: 6 December, 2023
Ammonia
Höegh Autoliners, Sumitomo to collaborate on ammonia bunker fuel supply for PCTCs in Singapore, Jacksonville
Duo will embark on a comprehensive evaluation of the compatibility between Höegh Autoliners PCTC newbuilds and ammonia bunkering facilities at the identified bunker ports.

Published
8 hours agoon
December 6, 2023By
Admin
Norway-based pure Car and Truck Carriers (PCTCs) vessel owner and operator Höegh Autoliners on Tuesday (5 December) said it has agreed with Sumitomo Corporation to look into the supply of clean ammonia as a bunker fuel at the ports of Singapore and Jacksonville, USA from 2027 onwards.
The two companies have formalised their commitment through a Letter of Intent to collaborate on the supply and delivery of clean ammonia as a next-generation sustainable maritime fuel for Höegh Autoliners’ upcoming Aurora Class PCTC vessels.
The twelve vessels are set to become the largest and most eco-friendly car carriers ever built and they will have the capability to run on zero-carbon ammonia or carbon neutral methanol.
“The Letter of Intent symbolises a remarkable step in the realisation and development of the production and consumption of clean maritime fuels. The collaboration hopes to stimulate the upscaling of the supply and demand of clean ammonia for maritime usage,” Höegh Autoliners said in a statement.
Both companies view clean ammonia as a promising future fuel for the maritime industry, offering substantial potential in addressing the challenges associated with greenhouse gas emissions in global shipping.
To support this vision, both entities have launched a range of initiatives throughout the ammonia value chain, with a primary focus on making clean ammonia a viable choice for maritime fuel and thereby achieving significant reductions in emissions from the global shipping sector.
Moving forward, the companies will embark on a comprehensive evaluation of the compatibility between the PCTC vessels and the ammonia bunkering facilities at the identified bunker ports.
They endeavour to make necessary adjustments to specifications for both “shore-to-ship” and “ship-to-ship” bunkering operations and undertake safety assessments to establish standardised operational protocols and regulations in close coordination with pertinent government agencies.
Photo credit: Höegh Autoliners
Published: 6 December, 2023

Marine Fuels 360: Methanol presents easiest path towards maritime decarbonisation, says DNV

Malaysia: MMEA detains three vessels for illegal anchoring in East Johor waters

Höegh Autoliners, Sumitomo to collaborate on ammonia bunker fuel supply for PCTCs in Singapore, Jacksonville

CENIT and Hinicio to explore feasibility of zero-carbon bunkers in Colombia

KPI OceanConnect, Titan, and SFL join forces on milestone LNG bunkering operation

DNV: Addressing methane slip in LNG-burning four-stroke Otto-cycle engines

Norwegian maritime startup ESG-NRG launches digital tool ETS Manager

Singapore: Golden Island switching to 100% e-BDN operations from 1 December

PS Energy wins runner-up position in Singapore E50 awards, shares bunker expansion plans

Goal Zero Consortium launches Singapore’s first electric cargo vessel Hydromover

DNV on decarbonizing ferries: Technological innovation and electrification

Q&A by Argus Media: Antwerp port plans 10mn t/yr NH3 imports by 2030

Chimbusco Pan Nation completes first bio bunker fuel supply for boxship in Hong Kong

Marine Fuels 360: Fingerprinting to play key role in proving biofuel feedstock authenticity and beyond, says VPS
Trending
-
Technology1 week ago
Singapore: Golden Island switching to 100% e-BDN operations from 1 December
-
Business2 weeks ago
PS Energy wins runner-up position in Singapore E50 awards, shares bunker expansion plans
-
Battery2 weeks ago
Goal Zero Consortium launches Singapore’s first electric cargo vessel Hydromover
-
Battery2 weeks ago
DNV on decarbonizing ferries: Technological innovation and electrification
-
Alternative Fuels2 weeks ago
Q&A by Argus Media: Antwerp port plans 10mn t/yr NH3 imports by 2030
-
Biofuel2 weeks ago
Chimbusco Pan Nation completes first bio bunker fuel supply for boxship in Hong Kong
-
Bunker Fuel1 week ago
Marine Fuels 360: Fingerprinting to play key role in proving biofuel feedstock authenticity and beyond, says VPS
-
Retrofit2 weeks ago
Singapore-based Hafnia tankers to be retrofitted with Wärtsilä propulsion efficiency solution