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JLC China Bunker Market Monthly Report (June, 2020)

13 Jul 2020

Beijing-based commodity market information provider JLC Network Technology Co. on Friday (10 July) shared its JLC China Bunker monthly report for May with Manifold Times through an exclusive arrangement:


Demand and Supply

Bunker Oil Demand

Bonded bunker fuel sales drop in June on weak demand

In June, China’s bonded bunker fuel sales fell to about 1.18 million mt, versus 1.45 million mt in May, JLC data showed. The bonded bunker fuel demand was sluggish. End-users took advantage of low prices earlier this year and made large purchases. Their high stocks depressed the demand for bonded bunker fuel. Besides, as bunker fuel prices in Singapore weakened in mid-June and late June, some end-users changed to refuel at Singaporean ports, which also inflicted on China’s bonded bunker fuel consumption in the month. Chimbusco and Sinopec sold about 496,000 mt and 530,000 mt of bonded bunker fuel, respectively. Bonded bunker fuel sales were about 15,000 mt for China ChangJiang Bunker (Sinopec), 80,000 mt for SinoBunker and 8,000 mt for CN%-TAFO Corp. New enterprises in the China (Zhejiang) Pilot Free Trade Zone sold 51,000 mt. 

China’s bonded bunker fuel sales dropped to 1.25 million mt in May, down by 19.85% month on month, according to GAC data. Although overseas COVID-19 eased in May, it was still too early for shipping markets to recover. Besides, as bunker fuel prices fell to the lowest level in April, end-users took advantages of low prices and made purchases, which held up demand in the month. Therefore, bonded bunker fuel sales were low in June with a marked month-on-month decline. Specifically, bonded bunker fuel sales were 554,000 mt for Chimbusco, 528,500 mt for Sinopec, 13,000 mt for China ChangJiang Bunker (Sinopec), 84,000 mt for SinoBunker, 9,300 mt for CN%-TAFO Corp and 62,500 mt for new enterprises in the China (Zhejiang) Pilot Free Trade Zone.


China Bunker Exports by Region, 2019-2020
China Major Blended Traders’ Bunker Sales, June 2020

Domestic bunker fuel demand drops in June

Domestic bunker fuel demand declined in June. With heavy rains in the southern coastal region, the coastal bulk shipping market was sluggish amid weak demand for coal and metal ore. More available freight capacity and less cargoes suggested thin demand. Depressed by a slack coastal transport market, bunker fuel demand declined. The demand for domestic-trade heavy bunker fuel was about 280,000 mt in the month, down by 20,000 mt or 6.67% from the previous month. The demand for light bunker fuel was 95,000 mt in June, down by 10,000 mt from May on slim demand as fishers made purchases mainly based on needs.

Bunker Oil Supply

Bonded bunker fuel imports soar 50.89% in May

China’s bonded bunker fuel imports were 1,553,000 mt in May, a surge of 50.89% month on month and a rise of 10.85% year on year, GAC data showed. Domestic bonded oil distributors actively made purchases of bonded bunker fuel as prices fell to the lowest level in the middle and late April. Most imported fuel oil cargoes they purchased in April arrived in May, which lent support to the imports.

Specifically, the largest import source for China was Malaysia with 720,000 mt of bunker fuel, followed by Singapore with 228,000 mt. The imports were 135,000 mt from Russia and 134,000 mt from Egypt. There were imports of 90,000 mt, 82,000 mt and 71,000 mt from UAE, South Korea and Indonesia, respectively. Besides, imports from Japan, Iraq and other countries totaled 91,000 mt.

Domestic blended bunker fuel supply mounts in June

Chinese blended producers supplied a total of around 340,000 mt of heavy bunker fuel in June, a rise of 10,000 mt or 3.03% month on month, JLC data showed. Blended producers had firm selling interests on improving sentiment amid stronger international crude prices, leading to a small increase in supply. However, blended producers in Northeast China were forced to halt supply on a lack of fuel oil invoices when local tax administration tightened inspection. Therefore, domestic trade bunker fuel supply was still below the normal level of last year, despite a month-on-month rise. Light bunker fuel supply was about 100,000 mt, down by 10,000 mt from May. Despite a surge of international crude prices, light bunker fuel supply dropped at the off-peak season amid thin trades.


Editorial Director

Amanda Zhao



Sales  Beijing

Tony Tang




Rachel Xu




Ginny Teo



Tobey Li





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: 13 July, 2020


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