Beijing-based commodity market information provider JLC Network Technology Co. recently shared its JLC China Bunker monthly report for June 2021 with Manifold Times through an exclusive arrangement:
Bunker Fuel Demand
Bonded bunker fuel sales grow in June
China’s bonded bunker fuel sales rose slightly to 1.575 mln mt in June, JLC data showed. The shipping demand was generally stable in June. The bunker fuel sales rose in North and East China but dropped in South China amid the resurgence of Covid-19 infection cases. Two state-run companies, Shenzhen Yantian Port Group Co., Ltd. and China Shipping & Sinopec Shenzhen Suppliers Co., Ltd., were granted licenses in June, which may lift the bunker fuel sales in Shenzhen in the future. Chimbusco and Sinopec sold about 630,000 mt and 680,000 mt of bonded bunker fuel, respectively. Bonded bunker fuel sales were about 75,000 mt for SinoBunker and 32,000 mt for China ChangJiang Bunker (Sinopec). New enterprises in the China (Zhejiang) Pilot Free Trade Zone sold 158,100 mt.
China’s bonded bunker fuel exports in May 2021 were 1.63 million mt, down by 20.65% month on month but up by 30.5% year on year, according to GAC data. The stricter control measure on ports pulled down the bunkering volume. China exported 1.54 million mt of heavy bunker fuel and 88,000 mt of light bunker fuel in May.
Bonded bunker sales for state-owned enterprises and Zhoushan enterprises were 1.47 mln mt and 155,800 mt, accounting for 90.42% and 9.58%. Specifically, bonded bunker fuel sales were 710,500 mt for Sinopec, 645,200 mt for Chimbusco, 88,000 mt for SinoBunker, 27,300 mt for China ChangJiang Bunker (Sinopec).
Domestic bunker fuel demand stable in June
Domestic bunker fuel demand was stable in June. Downstream buyers were active in purchase under the support of high international crude prices. However, the weak shipping demand curbed the increase in bunker demand. End users’ consumption of domestic-trade heavy bunker fuel was about 370,000 mt in the month, flat with the previous month. The continuous rainy weather along the Yangtze River had a negative influence on the shipping market. The demand for light bunker fuel was 130,000 mt in June, down by 10,000 mt from the previous month.
Bunker Fuel Supply
Bonded bunker fuel imports rise in May
China’s bonded bunker fuel imports were 840,000 mt in May, up by 3.39% month on month but down by 45.92% year on year, GAC data showed.
China’s bonded bunker fuel imports did not change much from the previous month as domestic LSFO production remained high and the import resources had no price advantage. Bonder bunker fuel traders made purchases based on their actual needs.
Specifically, the largest import source for China was still Malaysia with 609,500 mt of bunker fuel. Imports from Singapore, Iraq and South Korea were 88,400 mt, 87,000 mt and 55,200 mt respectively.
Domestic blended bunker fuel supply inches down in June
Chinese blending producers supplied a total of around 370,000 mt of heavy bunker fuel in June, down by 10,000 mt or 2.63% from May, JLC data showed. Low-sulfur residue oil and shale oil supply increased in June. Light coal tar and coal-based diesel mainly flowed into the hydrofining field instead of blending due to their high prices. Heavy bunker fuel supply inched down amid the high feedstock prices and waned purchase interest of blenders. Domestic light oil supply was about 150,000 mt in June, flat with the previous month.
Bunker Prices, Profits
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.
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Related: JLC China Bunker Monthly Report (May 2021)
Related: JLC China Bunker Market Monthly Report (April 2021)
Related: JLC China Bunker Market Monthly Report (March 2021)
Related: JLC China Bunker Market Monthly Report (February 2021)
Related: JLC China Bunker Market Monthly Report (January 2021)
Related: JLC China Bunker Market Monthly Report (December, 2020)
Related: JLC China Bunker Market Monthly Report (November, 2020)
Related: JLC China Bunker Market Monthly Report (October, 2020)
Related: JLC China Bunker Market Monthly Report (September, 2020)
Related: JLC China Bunker Market Monthly Report (July, 2020)
Related: JLC China Bunker Market Monthly Report (June, 2020)
Related: JLC China Bunker Oil Market Monthly Report (May, 2020)
Photo credit: JLC Network Technology Co Ltd
Published: 16 August, 2021
Additional topics of bunker contamination and OCM services discussed at VPS’ Fuel Management Challenges – The Year of 2021 & Beyond webinar on 23 September; Manifold Times summarises the session.
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