Beijing-based commodity market information provider JLC Network Technology Co. on Wednesday (16 December) shared its JLC China Bunker monthly report for November with Manifold Times through an exclusive arrangement:

JLC China Bunker Market Monthly Report (November, 2020)

Highlights

Demand and Supply

Bunker Fuel Demand

Bonded bunker fuel sales rise in November

In November, China’s bonded bunker fuel sales rose to 1.45 million mt, JLC data showed. As the shipping market improved, sales of bonded bunker fuel increased in November amid growing trades and economic activities. Besides, as bonded bunker fuel prices soared in H2 November, end-user demand perked up amid bullish sentiments. Chimbusco and Sinopec sold about 593,700 mt and 622,000 mt of bonded bunker fuel, respectively. Bonded bunker fuel sales were about 40,200 mt for SinoBunker and 38,000 mt for China ChangJiang Bunker (Sinopec). New enterprises in the China (Zhejiang) Pilot Free Trade Zone sold 161,000 mt.

China’s bonded bunker fuel sales dropped to 1.33 million mt in October, down by 5.43% month on month, according to GAC data. In October, most Chinese ports were closed for bunkering service during the long holiday in early October and strong winds affected eastern port operation at the end of the month, which dampened demand. Specifically, bonded bunker fuel sales were 456,700 mt for Sinopec, 621,400 mt for Chimbusco, 39,300 mt for SinoBunker, 45,900 mt for China ChangJiang Bunker (Sinopec) and 168,200 mt for new enterprises in the China (Zhejiang) Pilot Free Trade Zone.

Domestic bunker fuel demand climbs in November

Domestic bunker fuel demand rose in November. End users’ consumption of domestic-trade heavy bunker fuel was about 330,000 mt in the month, up by 40,000 mt from the previous month. The demand for light bunker fuel was 120,000 mt in November, up by 10,000 mt from October. Demand for coastal coal transport improved significantly in winter. Due to winter storage opportunities amid snows and falling temperature, domestic bunker fuel demand and freight rates rose on tight freight capacity. Besides, bunker fuel prices rose on the back of firm international crude prices and blendstock costs, sparking buying interest of downstream traders.

Bunker Fuel Supply

Bonded bunker fuel imports drop 10.3% in October 

China’s bonded bunker fuel imports were 632,000 mt in October, a drop of 10.3% month on month and a fall of 33.1% year on year, GAC data showed. Imports and exports businesses of some ports were closed for the National Day holiday in October, weighing down on bonded bunker fuel imports. In addition, overseas fuel oil production fell sharply due to large-scale unit maintenance of refineries in Europe. Arbitrage cargoes of fuel oil arriving at Asia fell to a low level and the overall bunker fuel supply in Asia tightened. Therefore, China’s bonded bunker fuel imports dropped markedly in October.

Specifically, the largest import source for China was still Malaysia with 425,000 mt of bunker fuel. Imports from South Korea and Singapore were 85,000 mt and 40,000 mt respectively. The imports were 35,000 mt from Russia and 31,000 mt from Iraq. Besides, there were 16,000 mt of imports from Indonesia.

Domestic blended bunker fuel supply rises in November

Chinese blending producers supplied a total of around 350,000 mt of heavy bunker fuel in November, a rise of 30,000 mt or 9.375% month on month, JLC data showed. In November, low-sulfur residue oil supply rose amid rising downstream demand. As blendstock costs stayed high, blenders tended to raise their prices. Sales climbed on improving market sentiments amid slightly rising prices. Active buying interest and trades were seen in the market as shipping demand was pushed up amid firmer international crude prices. Light bunker fuel supply was about 130,000 mt, up by 10,000 from October as demand edged up.

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.  

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 December, 2020