Beijing-based commodity market information provider JLC Network Technology Co. recently shared its JLC China Bunker monthly report for November 2021 with Manifold Times through an exclusive arrangement:
Bunker Fuel Demand
Bonded bunker fuel sales slip in November
China’s bonded bunker fuel sales dropped modestly to 1.72 mln mt in November, JLC data showed. The demand from the shipping sector was stable. The bunker fuel sales were restricted by high prices early this month. Besides, the recurring Covid-19 led to weaker demand at some ports in South China. The sales of new suppliers with a national license were better than those with a regional license and the sales of northern China were better than southern China. Chimbusco and Sinopec sold about 720,000 mt and 740,000 mt of bonded bunker fuel respectively.
Bonded bunker fuel sales were about 80,000 mt for SinoBunker and 30,000 mt for China ChangJiang Bunker (Sinopec). Enterprises with a Zhoushan license sold 147,000 mt and those with a Shenzhen license sold 8,000 mt respectively.
China’s bonded bunker fuel exports rose to 1.59 mln mt in October, up by 2.95% on month and 19.78% on year. The overall demand was robust, but the purchase interest of shipowners waned amid expensive high-sulfur resources. China exported 1.49 million mt of heavy bunker fuel and 105,500 mt of light bunker fuel in October.
Bonded bunker sales for state-owned enterprises and Zhoushan enterprises were 1.44 mln mt and 155,000 mt, accounting for 90.26% and 9.24%. Specifically, bonded bunker fuel sales were 760,000 mt for Sinopec, 614,200 mt for Chimbusco, 345,000 mt for SinoBunker, 28,800 mt for China ChangJiang Bunker (Sinopec). Sales of Shenzhen-licensed and Zhoushan-licensed enterprises were 3,000 mt and 152,000 mt respectively.
Domestic bunker fuel demand slides in November
Domestic bunker fuel demand slid in November. Market players tended to wait and see, given the fall of blending feedstock prices. End users’ consumption of domestic-trade heavy bunker fuel was about 320,000 mt in the month, down by 10,000 mt from October. The shipping demand was strong as shipowners were active in purchase amid the strengthened fundamentals of the coal market. The demand for light bunker fuel was 140,000 mt in November, down by 10,000 mt from the previous month.
Bunker Fuel Supply
Bonded bunker fuel imports plunge in October
China’s bonded bunker fuel imports were 255,400 mt in October, down by 55.8% month on month and 59.58% year on year, GAC data showed.
China’s bonded bunker fuel imports slumped in October. Tight supply pushed up Asian bonded bunker fuel prices, making import resources lose price advantage. What’s more, traders tended to liquidate their inventories before the year-end.
Specifically, Malaysia was still the largest supplier by exporting 100,300 mt of bunker fuel to China, accounting for 39% of the total volume. Imports from South Korea, Russia and Singapore were 80,500 mt, 73,800 mt and 1,000 mt respectively.
Domestic blended bunker fuel supply stable in November
Chinese blending producers supplied a total of around 330,000 mt of heavy bunker fuel in November, flat from October, JLC data showed. Low-sulfur residue oil supply was still tight, especially in east and south China. Shale oil supply increased significantly but the purchase volume of blenders was limited. Blenders had lower inventory amid the short supply of feedstocks. Domestic light oil supply was about 130,000 mt in November, up by 10,000 mt from the previous month. Low-sulfur asphalt mainly flowed to the coking sectors due to higher margins.
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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Photo credit: JLC Network Technology Co., Ltd
Published: 10 December, 2021
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