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JLC China Bunker Market Monthly Report (May 2022)

China’s bonded bunker fuel sales slipped to about 1.59 mln mt in May, down 1.1% from April, mainly due to tightening supply at certain ports, JLC data shows.

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MT pix 16 June 2022

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

Bunker Fuel Demand

Bonded bunker fuel sales down in May

China’s bonded bunker fuel sales slipped in May, mainly because of tightening supply at certain ports. The sales slid to about 1.59 mln mt in the month, down 1.1% from April, JLC’s data shows.

Chimbusco and Sinopec sold about 590,000 mt and 670,000 mt of bonded bunker fuel in May, JLC’s data indicates. Bonded bunker fuel sales for SinoBunker and China ChangJiang Bunker (Sinopec) were 72,400 mt and 39,000 mt respectively. At the same time, suppliers with the local license recorded 216,100 mt of sales.

The bonded bunker fuel sales were mixed at different ports in the month, as bonded bunker fuel supply diverged while demand largely stabilized. The sales of bonded bunker fuel uplifted in some regions where bonded bunker fuel supply was relatively abundant, such as Zhoushan and Shandong. Conversely, some southern ports with tight supply, like those in Shenzhen and Xiamen, recorded a drop in their bonded bunker fuel sales in the month.

Overall, the total amount of sales showed a slight downtrend in May 2022.

China’s bonded bunker fuel exports settled at roughly 1.29 mln mt in April 2022, falling 14.06% month on month and slumping 36.97% year on year, according to data from GACC. Among the exports were 1.22 mln mt of heavy bunker fuel and 68,000 mt of light MGO in April, accounting for 94.71% and 5.29% respectively.

State-owned enterprises exported about 1.11 mln mt of bonded bunker fuel in the month, accounting for 86.04% of the total. Specifically, bonded bunker fuel exports were 530,600 mt by Sinopec, 462,900 mt by Chimbusco, 73,000 mt by SinoBunker and 39,700 mt by China ChangJiang Bunker (Sinopec). Exports by independent enterprises reached 179,600 mt, accounting for 13.96%.

JLC China Bunker Market Monthly Report (May 2022)
JLC China Bunker Market Monthly Report (May 2022)

Domestic bunker fuel demand rebounds in May

Domestic bunker fuel demand bounced amid a relief in virus-related restrictions in May, though most deals were based on rigid demand.

The demand for domestic-trade heavy bunker fuel was around 310,000 mt in the month, up 30,000 mt or 10.71% month on month. Meanwhile, the demand for light bunker fuel increased to 140,000 mt, jumping 40,000 mt or 40% from a month before.

Domestic bunker fuel demand recovered slowly in the month as many enterprises began to resume work and production with the easing of the epidemic. In addition, the ongoing supply tightening generated some concerns of supply shortage, resulting in more inquiries and an increase in market trade.

Bunker Fuel Supply

Bonded bunker fuel imports keep falling in April

China’s bonded bunker fuel imports dived further on multiple factors in April, hitting a new low over the past six months.

China imported approximately 306,300 mt of bonded bunker fuel in April 2022, falling 22.22% from a month before and tumbling 62.29% from a year before, GACC data shows.

Exorbitant import costs continued to weigh on domestic buyers in April, as premiums for imported bonded bunker fuel and freight rates for the cargoes remained high. Therefore, the arrivals of the bunker fuel imports stayed low, and domestic low-sulfur resources still held the upper hand.

In addition, the imports were strongly inhibited by the tightening supply of low-sulfur fuel oil (LSFO) in Singapore, a major supplier of LSFO imports to China. Meanwhile, the recent sulfur pollution incident in Singapore also capped high-sulfur fuel oil imports from the country, resulting in a plunge in China’s April bonded bunker fuel imports.

The source countries of bonded bunker fuel imports changed a lot in the month. The UAE climbed to the top among the suppliers by exporting 98,300 mt of bonded bunker fuel to China, accounting for about 32% of the total imports. Russia ranked second with 92,400 mt of imports from the country, accounting for 30%. The followings were South Korea, Malaysia and Singapore, with 56,500 mt from South Korea, 40,000 mt from Malaysia and 19,100 mt from Singapore, accounting for 19%, 13% and 6% respectively.

JLC China Bunker Market Monthly Report (May 2022)

Domestic blended bunker fuel supply surges in May

Chinese blending producers supplied a total of about 330,000 mt of heavy bunker fuel in May 2022, rising 60,000 mt or 22.2% from a month before, JLC’s data shows. As for the light bunker fuel, the domestic marine gas oil (MGO) supply settled at about 150,000 mt in the month, leaping 40,000 mt or 36.36% from April.

The blended bunker fuel supply rallied in the month amid increasing production and improving control of the epidemic, in addition to a cross-regional procurement of Shandong traders.

Specifically, the supply of low-sulfur asphalt was boosted with the maintenance of several state-run refineries coming to an end. Downstream purchase interest for shale oil was good though the shale oil prices were still on the high side, leading the supply to grow. What’s more, the supply of coal-based diesel also climbed, tracking the rise in the supply of coking feedstocks and blendstocks when domestic gasoline and diesel markets ushered in the peak consumption season.

JLC China Bunker Market Monthly Report (May 2022)

Bunker Prices, Profits

JLC China Bunker Market Monthly Report (May 2022)
JLC China Bunker Market Monthly Report (May 2022)
JLC China Bunker Market Monthly Report (May 2022)

Editor
Yvette Luo
+86-020-38834382
[email protected]

Sales (Beijing)
Tony Tang
+86-10-84428863
[email protected]

Sales (Singapore)
Ginny Teo
+65-31571254
[email protected]
[email protected]

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 (April 2022)
Related: JLC China Bunker Market Monthly Report (March 2022)
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: 16 June, 2022

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Analysis

JLC China Bunker Fuel Market Monthly Report (October 2024)

China’s bonded bunker fuel sales plunged in October, due to lingering tightness of LSFO supply and the bad weather at certain ports.

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Bonded bunker fuel sales in Zhoushan JLC Nov 2024

Beijing-based commodity market information provider JLC Network Technology Co. recently shared its JLC China Bunker monthly report for October 2024 with Manifold Times through an exclusive arrangement:

China’s bonded bunker fuel sales plunge in October

China’s bonded bunker fuel sales plunged in October, due to lingering tightness of LSFO supply and the bad weather at certain ports.

The country sold about 1.45 million mt of bonded bunker fuel in the month, which was the lowest level since February 2022, JLC’s data shows. The daily sales settled at 46,881 mt in October, tumbling by 15.28% month on month.

Bonded bunker fuel sales by Chimbusco, Sinopec (Zhoushan), SinoBunker and China Changjiang Bunker (Sinopec) stood at 410,000 mt, 530,000 mt, 40,000 mt and 25,000 mt in the month, while those by suppliers with regional bunkering licenses settled at 448,300 mt, the data indicates.

China’s bonded bunker exports surge in September, but sales decline

China’s bonded bunker fuel exports surged in September, because of brisker re-export trade, but its actual sales declined amid tighter domestic supply.

The country exported about 2.18 million mt of bonded bunker fuel in the month, with the daily exports at 72,790 mt, up by 45.60% month on month and 37.82% year on year, JLC estimated, with reference to data from the General Administration of Customs of PRC (GACC).

Specifically, heavy bunker fuel exports totalled 1.90 million mt, accounting for 87.19% of the country’s total, while light bunker fuel exports increased to 279,800 mt, accounting for 12.81%.

Though bonded bunker fuel exports jumped amid more re-export trade activities, the actual sales descended as domestic refiners cut their LSFO production and port operation in East China was dampened by typhoons.

Chinese refiners produced about 993,000 mt of LSFO in the month, with the daily output at 33,100 mt, a slump of 11.16% from August and 15.13% from a year earlier, JLC’s data shows.

China issued this year’s third batch of quotas on LSFO exports in September, which was also expected to be the last batch for 2024, permitting only 1.0 million mt of exports, bringing this year’s total quotas to 13 million mt, down from 13.17 million for 2023 (the country issued quotas on 14 million mt for 2023, but some quotas were later converted to clean oil products).

China’s bonded bunker fuel exports totalled 15.09 million mt in the first nine months of this year, with the daily exports at 55,078 mt, sliding by 1.36% from the same period of time in 2023. Heavy bunker fuel exports came in at 14.08 million mt in January-September, accounting for 93.28%, while light bunker fuel exports stood at 1.01 million mt, making up 6.72%.

China bunker exports by region, 2023 2024 JLC Nov 2024

China major blending producers' bunker supply, Oct 2024 JLC Nov 2024

Domestic-trade heavy bunker fuel demand shrinks in October

Domestic-trade heavy bunker fuel demand shrank in October, because of multiple factors.

Domestic-trade heavy bunker fuel demand settled at 360,000 mt in the month, a decline of 30,000 mt or 7.69% month on month, JLC’s data shows. Most shipowners reduced purchases in early October, as they preferred to consume stockpiles during the National Day holiday. Operating ships decreased in mid-to-late October amid strong typhoons in southern China, and some ports’ bunkering business was hindered by the bad weather.

Domestic-trade light bunker fuel demand came in at 130,000 mt in the month, a loss of 10,000 mt or 7.14% from the previous month. Trade in the light bunker fuel market was limited, with shipowners still hesitant to make deals.

Bunker Fuel Supply

China’s bonded bunker fuel imports hit 22-month high in September

China’s bonded bunker fuel imports jumped significantly and set a 22-month high in September 2024, as domestic LSFO supply declined amid tight quotas.

The country imported 566,700 mt of bonded bunker fuel in the month, skyrocketing by 60.63% from the previous month and 45.38% from a year earlier, JLC estimated, with reference to data from the GACC. The imports hit the highest level since November 2022.

Bonded distributors imported more LSFO to meet demand when domestic refiners slashed their production amid lingering quota tightness. However, these distributors cut their high-sulphur fuel oil imports as their inventories remained relatively high. The imports of MGO were basically stable in September.

Malaysia still topped all suppliers by exporting 202,500 mt of bonded bunker fuel to China, which accounted for 35.73% of China’s total imports. Brazil came in second with 138,300 mt, accounting for 24.40%, followed by Singapore with 99,800 mt, making up 17.61%. Iraq and South Korea slipped to the fourth and fifth place with 85,200 mt and 40,900 mt, occupying 15.03% and 7.22% respectively.

China imported roughly 3.36 million mt of bonded bunker fuel in the first nine months, an upsurge of 16.39% from the corresponding months in 2023, speeding up from a rise of 11.86% in January-August.

China’s bonded bunker fuel imports are expected to hit a 23-month high in October, as domestic supply tightens amid quota shortages.

Chinese bonded bunker suppliers have imported more LSFO to meet demand lately, as Chinese refiners have cut their production amid shortage of quotas, according to market sources. By the end of September, Chinese oil refiners with LSFO export quotas (Sinopec, PetroChina, CNOOC, Sinochem and Zhejiang Petroleum and Chemical) had used 87.4% of their 2024 quotas, leaving quotas on only about 1.63 million mt for the last quarter, JLC’s data shows. This means they are likely to produce an average of roughly 545,000 mt of LSFO a month in the last quarter, versus a monthly average of about 1.26 million mt in January-September.

Bonded bunker fuel imports by source, Sept 2024 JLC Nov 2024

Domestic-trade bunker fuel supply tightens in October

Domestic-trade bunker fuel supply tightened in October, as cargo delivery was impeded by strict tax inspection, though the availability of blendstock increased.

Chinese blenders supplied about 370,000 mt of heavy bunker fuel in the month, a cut of 30,000 mt or 7.50% month on month, JLC’s data shows. At the same time, domestic-trade MGO supply slipped to 160,000 mt, down by 10,000 mt or 5.88% from a month earlier.

Arrival of imported fuel oil cargoes JLC Nov 2024

Bunker Prices, Profits

China main oil blending feedstock prices JLC Nov 2024

China domestic trading 180cSt bunker price, 2023 2024 JLC Nov 2024

China bunker blending profit by region, 2024 JLC Nov 2024

Editor
Yvette Luo
+86-020-38834382
[email protected]

Sales (Beijing)
Tony Tang
+86-10-84428863
[email protected]

Sales (Singapore)
Ginny Teo
+65-31571254
[email protected]
[email protected]

JLC Network Technology Co., Ltd is recognised as the leading information provider in China. We specialise 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 Fuel Market Monthly Report (September 2024)
Related: JLC China Bunker Fuel Market Monthly Report (August 2024)
Related: JLC China Bunker Fuel Market Monthly Report (July 2024)
Related: JLC China Bunker Fuel Market Monthly Report (June 2024)
Related: JLC China Bunker Fuel Market Monthly Report (May 2024)
Related: JLC China Bunker Market Monthly Report (April 2024)
Related: JLC China Bunker Market Monthly Report (March 2024)
Related: JLC China Bunker Fuel Market Monthly Report (February 2024)
Related: JLC China Bunker Market Monthly Report (January 2024)

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 earlier periods are available here.

 

Photo credit: JLC Network Technology
Published: 13 November 2024

 

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Alternative Fuels

Report: €40 billion needed for EU shipping’s energy transition

Building a supply chain for clean fuels in Europe is a priority for the industry to meet its decarbonisation targets and for Europe to achieve its climate targets, say stakeholders.

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Clean Maritime Fuels Platform

Clean Maritime Fuels Platform on Thursday (7 November) called on policymakers to create the regulatory conditions to unlock investments in the production of clean maritime fuels in the EU.

The Draghi Report estimates that €40 billion in annual investments will be needed between 2031 and 2050 for the energy transition of shipping.

Building a supply chain for clean fuels in Europe is a priority for the industry to meet its decarbonisation targets and for Europe to achieve its climate targets.

Clean Maritime Fuels Platform supports the report’s conclusions regarding the need to:

  • De-risk investments in renewable and low carbon fuels, for example via schemes based on Contracts for Difference and auctions as a service.
  • Launch dedicated sectoral calls under the Innovation Fund for the first deployment of decarbonisation solutions. The 20 million EU ETS allowances allocated to the decarbonisation of the maritime sector until 2030 should be used as soon as possible.
  • Expand existing funding mechanisms for refuelling and recharging infrastructure.
  • Start building a supply chain for renewable and low-carbon fuels in the EU.

European manufacturing capacity should match demand for clean shipping fuels in Europe as much as possible, in line with the benchmark of the Net-Zero Industry Act.

“The Draghi Report has recognised the global leadership of European shipping and the need to remain internationally competitive. In order to meet our targets, we need clean fuels available in the market in sufficient quantities and at an affordable price. To ensure that the shipping energy transition happen, the EU should de-risk investment in renewable and low carbon fuels and start building a supply chain for renewable and low-carbon fuels in the EU. Moreover, existing funding mechanisms for refuelling infrastructure should be expanded to better ensure the security of supply of clean fuels for shipping”, said Sotiris Raptis, ECSA Secretary General.

"Mr. Draghi’s report acknowledges the strategic role of renewable and low-carbon fuels, particularly in decarbonising all transport modes. His report highlights the EU's leadership in this area and calls for a truly technology-neutral approach. We, European Fuel Manufacturers, believe the right EU policy framework and subsidies can create a robust business case to attract private investments and avoid de-industrialization, help the EU successfully deliver climate neutrality by 2050, ensure a secure supply of energy, and foster innovative, EU-based, globally competitive industry for the welfare of EU economies and citizens", stated Liana Gouta, Director General of FuelsEurope.

“By linking the FuelEU Maritime with the supply mandates of the Renewable Energy Directive and abolishing stringent eligibility criteria, we can gradually increase eFuel capacities in the maritime sector.”, said Ralf Diemer, Managing Director of the eFuel Alliance.

“The following decade will lead to a fundamental shift in the European maritime fuel supply structure owing to the introduction of new regulations. The Draghi report places renewable and low-carbon fuels at the forefront of decarbonisation for the hard-to-abate maritime sector, and our industry is fully ready to support European shipowners to achieve this transition in a sustainable and cost-efficient way”, said Angel Alvarez Alberdi, Secretary General of EWABA.

“It is crucial to create a fertile environment for companies to invest in the production of competitive clean shipping fuels in Europe. Building on the Net-Zero Industry Act and the recommendations of the Draghi report, policymakers need to focus on to the importance of building a robust European supply chain for hydrogen and hydrogen derivatives in the maritime sector”, said Daniel Fraile, Chief Policy Officer of Hydrogen Europe.

“In the spirit of the Draghi-report, and for stimulating public and private investments, the EU should ensure that its regulations are in line with global developments, also in the maritime domain and notably with the IMO”, said R. Tim Eestermans, Managing Director Europe, Methanol Institute.

 

Photo credit: Clean Maritime Fuels Platform
Published: 11 November 2024

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Research

Sea Cargo Charter report demonstrates shipping’s shortfall against IMO climate goals

2024 report highlights the gap between current emissions and the IMO’s revised strategy for net-zero emissions by 2050.

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Sea Cargo Charter 2024 report

The shipping industry must take urgent action to meet ambitious new climate targets set by the International Maritime Organization (IMO), according to a new report released on Thursday (13 June) from the Sea Cargo Charter (SCC), a global transparency initiative developed by the Global Maritime Forum.

New data from the SCC, a global framework representing 20% of global bulk cargo transport, reveals the sector fell short of minimum international climate goals set by the IMO by an average of 17% in 2023, equivalent to 165 million metric tonnes of CO2e.

When considering ‘striving’ goals set by the IMO, signatories are on average 22% misaligned, which represents a shortfall of 204 million metric tonnes of CO2e in 2023.

Currently, dry bulk, general cargo, and tankers account for around 400 million tonnes of CO2 emissions. With global trade predicted to quadruple by 2050, emissions will skyrocket without urgent action.

Reporting has also been expanded to include “well-to-wake” emissions, which measure emissions from the extraction of oil to its end use, providing a more comprehensive picture of environmental impact and pushing the industry towards faster decarbonisation.

The 2024 report highlights the gap between current emissions and the IMO’s revised strategy for net-zero emissions by 2050. The report shows the importance of commercial and operational decisions on the vessels’ use (such as, instructed speed, cargo and routing optimisation, laden/ballast ratio), innovation and cooperation within the industry to be able to take action in this transition.

Other identified barriers to cutting emissions are geopolitical disruptions, limited alternative marine fuel options for long voyages, and a lack of infrastructure to support new technologies.

The 2024 Annual Disclosure Report was produced by the Global Maritime Forum, which performs secretariat services for the Sea Cargo Charter with expert support provided by UMAS and the Smart Freight Centre.

 

Photo credit: Sea Cargo Charter
Published: 14 June 2024

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