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JLC China Bunker Market Monthly Report (June, 2020)

Bunker fuel prices in Singapore weakened in mid-June and some users chose to refuel at Singaporean ports, which negatively impacted China’s bunker sales, reports JLC.

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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:

Highlights

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.

 

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China Bunker Exports by Region, 2019-2020

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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.

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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.

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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: 13 July, 2020

 

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Environment

Singapore, Indonesia and Malaysia conduct table-top exercise to strengthen oil spill response

Exercise focused on several aspects including collaboration between government agencies and oil spill response firms to optimise oil spill response resources for incidents in Straits of Malacca and Singapore.

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The Maritime and Port Authority of Singapore (MPA) on Tuesday (11 February) conducted a table-top exercise (TTX) with Indonesia and Malaysia to enhance regional coordination and strengthen response capabilities for oil spills. The exercise brought together over 20 representatives from MPA, Indonesia’s Directorate General of Sea Transportation, Malaysia’s Environment Department, and oil spill response experts from ITOPF. As part of Singapore’s chairmanship of the Revolving Fund Committee (RFC) from April 2022 until March 2027, MPA led the TTX to foster collaboration between the littoral States of Indonesia, Malaysia and Singapore. The RFC, established through a memorandum of understanding (MOU) between the three littoral States and the Malacca Strait Council (MSC) in 1981, is a funding mechanism allowing each littoral State to draw cash advance from the Fund to combat oil spill from ships in the Straits of Malacca and Singapore (SOMS). The exercise focused on coordination procedures to ensure swift and clear communication between the littoral States during an oil spill incident, rapid deployment of oil spill response assets by the littoral States, and collaboration between government agencies and oil spill response companies to optimise oil spill response resources for incidents in the SOMS. The response strategies and asset deployment plans tested during the TTX will be exercised during a Ground Deployment Exercise between the three littoral States and ITOPF in 2026. Photo credit: Maritime and Port Authority of Singapore Singapore, Indonesia and Malaysia conducts table-top exercise to strengthen oil spill response

The Maritime and Port Authority of Singapore (MPA) on Tuesday (11 February) conducted a table-top exercise (TTX) with Indonesia and Malaysia to enhance regional coordination and strengthen response capabilities for oil spills. 

The exercise brought together over 20 representatives from MPA, Indonesia’s Directorate General of Sea Transportation, Malaysia’s Environment Department, and oil spill response experts from ITOPF.

As part of Singapore’s chairmanship of the Revolving Fund Committee (RFC) from April 2022 until March 2027, MPA led the TTX to foster collaboration between the littoral States of Indonesia, Malaysia and Singapore. 

The RFC, established through a memorandum of understanding (MOU) between the three littoral States and the Malacca Strait Council (MSC) in 1981, is a funding mechanism allowing each littoral State to draw cash advance from the Fund to combat oil spill from ships in the Straits of Malacca and Singapore (SOMS).

The exercise focused on coordination procedures to ensure swift and clear communication between the littoral States during an oil spill incident, rapid deployment of oil spill response assets by the littoral States, and collaboration between government agencies and oil spill response companies to optimise oil spill response resources for incidents in the SOMS.

The response strategies and asset deployment plans tested during the TTX will be exercised during a Ground Deployment Exercise between the three littoral States and ITOPF in 2026.

 

Photo credit: Maritime and Port Authority of Singapore
Published: 12 February, 2025

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LNG Bunkering

South Korea’s HJSC scores LNG bunkering vessel order from H-Line Shipping

HJ Shipbuilding & Construction has secured its first order of the year with a contract worth KRW 127.1 billion (USD 87.6 million) to build an 18,000㎥ LNG bunkering vessel for H-Line Shipping.

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South Korean HJSC scores LNG bunkering vessel order from H-Line Shipping

HJ Shipbuilding & Construction (HJSC) has secured its first order of the year with a contract worth KRW 127.1 billion (USD 87.6 million) to build an 18,000㎥ LNG bunkering vessel for H-Line Shipping. 

The contracted vessel is a large-scale LNG bunkering ship measuring 144 meters in length, 25.2 meters in width, and 12.8 meters in depth. It is capable of supplying up to 18,000㎥ of LNG in a single operation to LNG-fuelled ships. 

Equipped with two independent LNG tanks certified by the International Maritime Organization (IMO), the vessel features a dual-fuel propulsion system that allows it to operate on both eco-friendly LNG and marine diesel oil. This advanced system ensures both stability and operational efficiency while effectively reducing carbon emissions.

Yoo Sang-cheol, CEO of HJSC, said, “As global LNG demand and supply continue to grow, the LNG bunkering vessel market will see steady expansion.” 

“We will focus on strengthening our expertise in building eco-friendly, high-value-added ships, securing a competitive edge that aligns with our legacy as a leader in shipbuilding.”

This achievement follows the company's success in 2014 when it built the world’s first 5,100㎥ LNG bunkering vessel for Japan’s NYK Line.

“This accomplishment also reinforces South Korea’s shipbuilding industry's efforts to enhance competitiveness by securing high-efficiency, environmentally friendly vessels in the global market,” HJSC said. 

“Notably, with the anticipated expansion of oil and natural gas drilling and the resumption of LNG exports under the second Trump administration in the US, the market for crude oil carriers, LNG carriers, and LNG bunkering vessels is expected to see significant growth.”

“This trend is likely to benefit the country’s highly competitive shipbuilding industry.”

 

Photo credit: HJ Shipbuilding & Construction
Published: 12 February, 2025

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Bunker Fuel

AMSOL tanker “Uhambo” commences offshore bunkering operations in Algoa Bay

Firm announced that its product tanker Uhambo has started offshore bunkering operations in Algoa Bay, signalling that the service has resumed in the maritime bay of South Africa.

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AMSOL tanker “Uhambo” commences offshore bunkering operations in Algoa Bay

Marine services provider AMSOL recently announced that its product tanker Uhambo has started offshore bunkering operations in Algoa Bay, signalling that the service has resumed in the maritime bay in South Africa.  

“Now flying the South African flag and an important platform for the ongoing training and development of tanker-endorsed South African seafarers, the Uhambo has commenced offshore bunkering operations in Algoa Bay, delivering locally refined marine fuel on behalf of its oil industry client,” the company said in a statement shared with Manifold Times

In November 2024, the South African Revenue Services (SARS) released new protocols including amendments under sections 21, 60, and 120 of the Customs and Excise Act. Some amendments pertain to the storage of imported bonded fuel goods in designated customs and excise storage warehouses.

SARS' move was anticipated to facilitate bunkering to resume off Algoa Bay, which has been shut down since September 2023

AMSOL’s Chief Commercial Officer Graham Dreyden, said: “Our ability to comply with stringent operating regulations and legislation as well as international maritime and marine standards underpins AMSOL’s track record.”

“This is the case for operations in Algoa Bay and we have worked closely with authorities and relevant stakeholders to ensure all legislative requirements for offshore bunkering operations are met.”

AMSOL’s CEO Dan Ngakane said he is positive about the growth of the company and its broader impact. 

“We have acquired five vessels in the last 4 years in order to meet the needs of our clients in the region for reliable and professional, risk managed marine solutions,” he said.

“In leading growth in the South African maritime sector, we remain committed to meeting the highest standards for environmental protection, safety and compliance whilst developing the talent required to keep our industry growing and moving forward.”

AMSOL said it is the only marine services business operating in the region with a proven track record in effective management of risk-mitigated fuel transfers through a portfolio of services that include in-port bunker delivery, offshore bunkering, ship-to-ship fuel transfer services and offshore terminal management.

Related: ENGINE: SARS releases final rules for South Africa’s offshore bunkering
Related: SARS seeks public comments on amendments to bonded bunker fuel storage regulations
Related: South African Revenue Service issues media statement on detention of bunkering vessels
Related: ENGINE: Algoa Bay bunkering at a standstill as authority detains barges – sources
Related: ENGINE: Algoa Bay closure spurs surge in bunker calls at nearby ports

 

Photo credit: AMSOL
Published: 12 February, 2025

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