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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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Bunker Fuel Quality

FOBAS: High/off-spec ash found in ARA residual bunker fuels due to calcium

These fuels were bunkered in the second half of April from ports in the ARA region with tested ash ranging from 0.102 to 0.127%m/m; high calcium is a main contributor to the off-spec ash.

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Louis Reed from Unsplash

Lloyd’s Register Fuel Oil Bunkering Analysis and Advisory Service (FOBAS) on Thursday (8 May) released a bulletin regarding its testing on a number of fuels that have a high tested Ash content, above the 0.100%m/m limit for an RMG380 grade:

In recent days FOBAS has tested a number of fuels that have a high tested Ash content, above the 0.100%m/m limit for an RMG380 grade. These fuels were bunkered in the second half of April from ports in the ARA (Antwerp, Rotterdam, Amsterdam) region with tested Ash ranging from 0.102 to 0.127%m/m.

These fuels are all high sulphur residual fuels (>0.50% mass) with very similar properties and appear to be from the same source.

One common factor in all is the high Calcium which is a main contributor to the off-spec Ash in each case. Calcium ranged from 116mg/kg up to 181mg/kg. Sodium was also relatively high ranging from 50 to 86mg/kg., The fuels also had high acid numbers (TAN) ranging from 2.20 to 3.40mgKOH/g.

Often when we see high acid numbers (>2.00mgKOH/g) and high Calcium together this is due to naphthenic acids. These are present in the original crude oil and generally not considered any operational concern. Initial testing on some of these recent fuels show naphthenic acids to be present.

There are some additional points to clarify on the above:

  • Firstly, in relation to Calcium, it may be noted that ISO8217 lists a 30mg/kg limit for Calcium. It is important to note the full clarification in the standard however, where the Calcium limit only applies in conjunction with the Phosphorus or Zinc limits of 15mg/kg, used as a measure of ULO (Used Lubricating Oil) presence, rather than to limit the Calcium content on its own.
  • Sodium levels, although relatively high are all still below the 100mg/kg RMG380 grade limit.
  • On any high acid number fuel, it should also be noted that just because naphthenic acids are present, it does not rule out any other contamination or potential issues with the fuel. Additional attention should be given to the performance of the fuel injection equipment and component conditions during the use of such fuels
  • Although Calcium on its own is not a problem, at high levels where it increases the total Ash content as seen here, it can be an issue with increased Ash potentially leading to an increase in post combustion fouling and surging of turbocharger. This should not be allowed to accumulate in particular in the turbocharger, inlet grids, nozzle and blading.

So far we have not had any operation problems reported on the use of these fuels, however caution should be taken in particular to dealing with any increase in post combustion fouling as mentioned, and if further investigation into the nature of the acidic components present is required to confirm they are only naphthenic acids then detailed GCMS forensic testing could be carried out.

 

Photo credit: Louis Reed from Unsplash
Published: 9 May, 2025

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LNG Bunkering

Singapore: ITOPF and Britannia P&I Club conduct table-top workshop for LNG bunker spills

Both held a workshop where attendees planned a response to a spill scenario of LNG from an alternatively fuelled vessel as part of a new training exercise.

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Singapore: ITOPF and Britannia P&I Club conduct table-top workshop for LNG bunker spills

The International Tanker Owners Pollution Federation (ITOPF) on Wednesday (7 May) said it held a table-top workshop with Britannia P&I Club in Singapore where attendees planned a response to a spill scenario of Liquefied Natural Gas (LNG) as part of a new training exercise called HYDRO NEXUS. 

The half-day event saw team members from Britannia successfully responding to a spill of LNG bunkers from an alternatively fuelled vessel, who were assisted by the ITOPF team on how best to approach the response, taking into account the risks and hazards presented by this substance.

“The Britannia team were guided by ITOPF’s experts on the steps of an alternative fuel and HNS (Hazardous and Noxious Substances) response, including information gathering, risk assessment, appropriate PPE selection, and use of different techniques and equipment used in these spill scenarios,” it said on its website. 

“One key component of the exercise was to demonstrate the potential impacts and claims that the P&I insurers may face during an alternative fuel/HNS incident. Teams collated costs for loss of life and personal injury, clean-up and preventive measures, property damage, economic loss and environmental damage claims.”

 

Photo credit: International Tanker Owners Pollution Federation
Published: 9 May, 2025

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Decarbonisation

Singapore-based Berge Bulk installs carbon capture system on board bulk carrier

System, developed by Value Maritime, integrates carbon capture into an exhaust gas cleaning system known as the Filtree System, designed to capture up to 15 tonnes of CO₂ per day.

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Singapore-based Berge Bulk installs carbon capture system on board bulk carrier

Singapore-based dry bulk owner Berge Bulk on Wednesday (7 May) said it has completed the installation of a carbon capture system on board its 63,000 DWT Ultramax vessel Berge Yotei.

The system, developed by Value Maritime, integrates carbon capture into an exhaust gas cleaning system known as the Filtree System. It is designed to capture up to 15 tonnes of CO₂ per day, representing a potential 30% reduction in emissions during operations.

Unlike conventional scrubbers, the Filtree System removes both sulphur oxides and CO₂ from a vessel’s exhaust. CO₂ is absorbed into a reusable amine solution, which can be offloaded in port for regeneration or reuse. Potential applications include use in greenhouses, beverage production, and other industrial processes — contributing to a more circular carbon economy.

“Carbon capture is a key pillar of our decarbonisation strategy. While we remain committed to optimising fleet efficiency, installing decarbonisation technology, and switching to new fuels, we must also capture carbon at the same time.” said James Marshall, CEO of Berge Bulk. 

“We’ve been actively capturing carbon through nature-based solutions on shore for many years, now it’s time to also start capturing carbon on board.”

As the industry looks to decarbonise, Berge Bulk emphasised the need for collaboration across governments, ports, technology providers, and regulators to develop the infrastructure, protocols, and commercial models needed to support carbon capture at scale.

 

Photo credit: Berge Bulk
Published: 9 May, 2025

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