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JLC China Bunker Market Monthly Report (March 2022)

17 May 2022

Beijing-based commodity market information provider JLC Network Technology Co. recently shared its JLC China Bunker monthly report for March 2022 with Manifold Times through an exclusive arrangement:

Bunker Fuel Demand 

Bonded bunker fuel sales rally in March 

China’s bonded bunker fuel sales rallied in March, thanks to the competitive prices at domestic ports. China’s bonded bunker fuel sales rebounded to 1.61 mln mt in the month, moving up by 12.59% month on month, JLC’s data showed. 

Chimbusco and Sinopec sold about 630,000 mt and 700,000 mt of bonded bunker fuel in March, JLC’s datashows. Bonded bunker fuel sales for SinoBunker and China ChangJiang Bunker (Sinopec) were about 78,000 mt and 30,000 mt, respectively. Suppliers with the Zhoushan license recorded 164,700 mt of sales and those with the Shenzhen license sold 8,700 mt of bonded bunker fuel. 

The sales of bonded bunker fuel increased at most domestic ports, as their competitive prices attracted more foreign ships to refuel, while some other ports’ sales of bonded bunker fuel decreased greatly, dragged down by the recurrent epidemic and high crude prices. 

China exported 3.84 mln mt of bonded bunker fuel in the first two months of 2022, up 20.58% from the same two months in 2021. Specifically, the bonded bunker fuel exports settled at 2.46 million mt in January and 1.38 million mt in February, the GAC data shows. 

The country’s heavy bunker fuel exports were 3.64 mln mt and light MGO exports were 196,800 mt in January-February 2022, accounting for 94.88% and 5.12%, respectively. 

Bonded bunker sales for state-owned enterprises reached 3.50 mln mt in the two months, accounting for 91.11%. Specifically, bonded bunker fuel sales were 1.92 mln mt for Sinopec, 1.39 mln mt for Chimbusco, 117,700 mt for SinoBunker and 71,900 mt for China ChangJiang Bunker (Sinopec). Sales for independent enterprises were 341,400 mt, accounting for 8.89%.

JLC China Bunker Market Monthly Report (March 2022)

JLC China Bunker Market Monthly Report (March 2022)

Domestic bunker fuel demand shrinks in March 

Domestic bunker fuel demand shrank on the restrictions against COVID-19 in March. The demand for domestic-trade heavy bunker fuel was about 300,000 mt in the month, down 20,000 mt or 6.25% from previous month. Meanwhile, the demand for light bunker fuel was around 120,000 mt, down 10,000 mt or 7.69% from a month before. 

Domestic bunker fuel demand was not strong and the overall market trading was thin in March as Chinareported more and more cases of infection in many cities. However, the domestic market gained some support from rigid demand and minor replenishment amid slipping crude prices in late March. 

Bunker Fuel Supply 

Bonded bunker fuel imports plummet in Jan-Feb 

China’s bonded bunker fuel imports plummeted in January-February 2022, mainly because of surging bonded bunker fuel prices and soaring freight rates. 

The country imported about 878,900 mt of bonded bunker fuel in January-February, a plunge of 47.76% from the same period of time in 2021. Specifically, the bonded bunker fuel imports in January were 380,300 mt and those in February were 498,600 mt, GAC data showed. The imports stayed low as the previous priceadvantage faded, leading the traders to cut their imports and purchase domestic resources instead. 

Malaysia ranked first among those suppliers by exporting 294,800 mt of bonded bunker fuel to China, accounting for about 33% of the total volume, followed by Singapore with 294,000 mt, accounting for about 33% too. The imports from South Korea and Russia were 208,000 mt and 67,700 mt, accounting for 24%and 8% respectively. Besides, there were also a few imports from Italy. 

JLC China Bunker Market Monthly Report (March 2022)

Domestic blended bunker fuel supply falls in March 

Chinese blending producers supplied a total of roughly 290,000 mt of heavy bunker fuel in March 2022, dropping by 30,000 mt or 9.38% month on month, JLC’s data showed. 

The operating rates at refiners slipped further and remained low in March due to bad margins, along with the restrictions against the virus. Under the influence of the environmental inspections, the blending volume decreased sharply amid high prices of light coal tar and coal-based diesel components, also because the transportation of the blendstocks was affected by the outbreak of the virus in late March. 

Low-sulphur asphalt supply edged up owing to rigid demand, but the rise was relatively slight because most of the blendstocks flowed to the coking sectors when coking margins remained considerable and oil product prices were still high. The overall supply was not adequate, capped by the restrictions against the COVID-19. Domestic marine gasoil (MGO) supply was about 120,000 mt in March, down by 20,000 mt or 14.29% from the previous month, JLC’s data showed.

JLC China Bunker Market Monthly Report (March 2022)

Bunker Prices, Profits

JLC China Bunker Market Monthly Report (March 2022)

JLC China Bunker Market Monthly Report (March 2022)

JLC China Bunker Market Monthly Report (March 2022)

Editor
Yvette Luo
+86-020-38834382
yvetteluo@jlcint.com

Sales (Beijing)
Tony Tang
+86-10-84428863
tonytang@jlcint.com

Sales (Singapore)
Ginny Teo
+65-31571254
ginnyteo@jlcint.com
service@jlcint.com

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 (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: 17 May, 2022

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