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JLC China Bunker Market Monthly Report (November 2023)

China sold about 1.63 million mt of bonded bunker fuel in the month, with daily sales at 54,167 mt, climbing by 3.33% from October, JLC’s data shows.

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JLC China Bunker Market Monthly Report (November 2023)

Beijing-based commodity market information provider JLC Network Technology Co. recently shared its JLC China Bunker monthly report for November 2023 with Manifold Times through an exclusive arrangement:

Bunker Fuel Demand

China sees a rally in its daily bonded bunker fuel sales in November

China saw a rally in its daily bonded bunker fuel sales in November, due to multiple factors.

The country sold about 1.63 million mt of bonded bunker fuel in the month, with daily sales at 54,167 mt, climbing by 3.33% from October, JLC’s data shows.

The sales by Sinopec Zhoushan and SinoBunker rose to 600,000 mt and 75,000 mt in the month respectively, while those by Chimbusco slipped to 480,000 mt. Low-sulfur fuel oil supply in Zhoushan was relatively abundant, while that in South and North China tightened further.

The sales by China ChangJiang Bunker (Sinopec) still stabilized at 35,000 mt. Suppliers with regional bunkering licenses tallied 435,000 mt of bonded bunker fuel sales in the month, up from 420,000 mt in the previous month.

China’s bonded bunker fuel exports drop in October

China’s bonded bunker fuel exports dropped in October, mainly as a result of tightening domestic supply.

The country tallied about 1.46 million mt of bonded bunker fuel exports in the month, a decline of 8.02% month on month, JLC estimated, with reference to data from the General Administration of Customs of PRC (GACC).

Chinese refineries slashed their low-sulfur fuel oil (LSFO) output in October, as their production enthusiasm was dented by bad margins and export quota tightness. Meanwhile, China’s bonded bunker fuel lacked price advantages as tighter supply pushed up the country’s bonded 0.5% sulfur bunker fuel prices. In addition, bonded distributors reduced purchases as freight rates at some Chinese ports increased amid a decline in the barging capacity.

China exported about 1.39 million mt of heavy bunker fuel and 67,500 mt of light bunker fuel in October, which accounted for 95.37% and 4.63% of the country’s total exports respectively. Suppliers with national bunkering licenses recorded 1.03 million mt of bonded bunker fuel exports, accounting for 70.96%, with Sinopec Fuel Oil and Chimbusco taking 64.11%. Meanwhile, enterprises with regional licenses exported 423,300 mt of bonded bunker fuel, occupying 29.04%.

On a year-on-year comparison, however, China’s bonded bunker fuel exports jumped by 18.14% in October. The surge was mainly ascribed to a low base a year earlier when global shipping demand was hit hard by virus resurgences.

In the first ten months of this year, China’s bonded bunker fuel exports totaled about 16.70 million mt, inching up by 0.74% from the corresponding months of 2022. Among these exports were 15.83 million mt of heavy bunker fuel and 870,100 mt of marine gasoil (MGO), accounting for 94.79% and 5.21% respectively.

Regarding the exports by supplier, enterprises with national licenses exported roughly 13.18 million mt, accounting for 78.93%, while those with regional licenses exported 3.52 million mt, making up 21.07%.

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Domestic-trade heavy bunker fuel demand grows further in November

Domestic-trade heavy bunker fuel demand grew further in November, as some shipowners showed higher buying interest amid a rise in freight rates and a pick-up in terminal shipping demand. Domestic-trade heavy bunker fuel demand increased to 450,000 mt in the month, up by 50,000 mt or 12.5% month on month, JLC’s data shows.

Conversely, domestic-trade light bunker fuel demand decreased in November, as diesel consumption shrank amid colder weather. Domestic-trade marine gasoil (MGO) demand settled at 160,000 mt in the month, sliding by 5,000 mt or 3.03% from October.

Bunker Fuel Supply

China boosts its bonded bunker imports in October

China slightly boosted its bonded bunker fuel imports on month in October, as domestic supply tightened further.

The country imported about 404,600 mt of bonded bunker fuel in the month, rising by 3.80% from September, JLC estimated, with reference to data from the General Administration of Customs of PRC (GACC).

Singapore became the largest supplier by shipping 140,300 mt of bonded bunker fuel to China, accounting for 34.69% of the latter’s total imports. Japan came second with 77,500 mt, accounting for 19.17%, while Russia ranked third with 64,700 mt, occupying 15.98%. Malaysia slipped to the fourth place with 62,800 mt, accounting for 15.53%, while South Korea slid to the fifth place with 56,800 mt, accounting for 14.04%. In addition, there were about 2,413 mt of bonded bunker fuel coming from Hong Kong, China, accounting for 0.60%.

Chinese refineries decelerated their LSFO production because of tighter export quotas, leading to a further decline in domestic supply. In this case, bonded distributors imported more LSFO to fill the demand gap. However, high-sulfur fuel oil imports decreased amid stricter inspections, while marine gasoil (MGO) imports held largely stable.

On a year-on-year comparison, however, China’s bonded bunker fuel imports plunged by 19.71% in October.

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Domestic-trade heavy bunker fuel supply increases further in November

Domestic-trade heavy bunker fuel supply increased modestly in November, while light bunker fuel supply tightened.

Chinese blenders supplied about 460,000 mt of domestic-trade heavy bunker fuel in the month, rising by 10,000 mt or 2.22% month on month, JLC’s data indicates. Blenders increased their production when downstream demand climbed, also because of relatively ample supply of low-sulfur residual oil.

By contrast, domestic-trade marine gasoil (MGO) supply settled at 160,000 mt in the month, descending by 20,000 mt or 11.11% from a month earlier. Refineries lowered their light bunker fuel output amid lower margins.

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Bunker Prices, Profits

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Editor
Yvette Luo
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Sales (Beijing)
Tony Tang
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Sales (Singapore)
Ginny Teo
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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 (October 2023)
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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: 8 December, 2023

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Incident

Singapore: Bunker spill leads to checks on all fuel pipes at other Police Coast Guard bases

Police said fuel pipes at the other three bases at Loyang, Lim Chu Kang and Gul are also being checked with inspections expected to be wrapped up on 10 February.

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The recent oil leak incident at Police Coast Guard (PCG) Brani Regional Base has prompted checks on all fuel pipes at PCG’s three other bases for leaks, according to The Straits Times on Monday (10 February). 

Responding to queries from the local news provider, the police said all fuel pipes at Brani Regional Base were inspected on 6 February while fuel pipes at the other three bases at Loyang, Lim Chu Kang and Gul are also being checked with inspections expected to be wrapped up on 10 February. 

The police also said that a preliminary assessment on the cause of the leak might be due to micro cracks in a damaged fuel pipe as a result of repeated twisting of the pipe due to the movement of the pontoons caused by tidal changes.

On 6 February, Singapore authorities confirmed that a diesel oil leak was discovered at the Brani Regional Base on 5 February, at around 11.40am (Singapore Time). 

According to a joint statement by Singapore Police Force, Maritime and Port Authority (MPA) and National Environment Agency (NEA), about 23 metric tonnes had leaked from a damaged shore fuel hose used to refuel patrol craft at Selat Sengkir. 

The leak was eventually isolated at about 3.40pm and there were no oil slicks observed.

Related: Singapore confirms bunker spill from damaged shore fuel hose at Brani Regional Base

 

Photo credit: Manifold Times
Published: 11 February, 2025

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Biofuel

NYK conducts first Japan bio bunker fuel trial on coal carrier for domestic power utility firm

Firm said it has started a biofuel test run on Noshiro Maru, operated by Tohoku Electric Power, marking the first time in Japan that a coal carrier has been used to test biofuel for a domestic power utility firm.

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NYK conducts first Japan bio bunker fuel trial on coal carrier for domestic power utility firm

Japanese shipping firm NYK on Monday (10 February) said it has started a biofuel test run on its coal carrier Noshiro Maru, which is operated by Tohoku Electric Power on 9 February.

This is the first time in Japan that a coal carrier has been used to test biofuel for a domestic power utility company. Mitsubishi Corporation Energy in the Keihin area facilitated the supply of biofuel for the vessel.

Biofuels are made from organic resources (biomass) of biological origin, such as agricultural residues and waste cooking oil, and are considered to produce virtually zero carbon dioxide (CO₂) emissions when combusted.

“Since they can be used in heavy-oil-powered ship engines, which are common on large merchant ships, biofuels are considered a key means of reducing greenhouse gas (GHG) emissions in the transition period from heavy oil to zero-emission fuels,” NYK said. 

“Using biofuel to reduce GHG emissions during sea navigation also contributes to reducing Scope 3 GHG emissions generated by transporting customers’ cargo.”

NYK added it will continue to focus on introducing biofuels and other next-generation fuels, and will contribute to reducing GHG emissions in our customers' supply chains while promoting decarbonisation in marine transport.

 

Photo credit: NYK
Published: 11 February, 2025

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Biofuel

IBIA welcomes IMO move to draft guidance change on carriage of bio bunker fuels

IBIA welcomed agreement by IMO’s Sub Committee on PPR 12 to draft Interim Guidance on the carriage of blends of biofuels and MARPOL Annex I cargoes by conventional bunker ships.

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The International Bunker Industry Association (IBIA) on Monday (10 February) said it submitted a document to IMO on the carriage of biofuels for supply to a ship for use as fuel oil on board that ship in November 2023.

This highlighted that as conventional bunker vessels were limited in carrying fuel oil of no more than 25% biofuel it presented a potential impediment to the global adoption of biofuels as fuel oil for ships and so to the ambition for the decarbonization of international shipping in the short term, as set out in the 2023 IMO GHG Strategy.

“IBIA therefore welcomes the agreement by IMO’s Sub Committee on Pollution Prevention and Response (PPR 12) to draft Interim Guidance on the carriage of blends of biofuels and MARPOL Annex I cargoes by conventional bunker ships,” it said on its website. 

The guidance allows conventional bunker ships certified for carriage of oil fuels under MARPOL Annex I to transport blends of not more than 30% by volume of biofuel, as long as all residues or tank washings are discharged ashore, unless the oil discharge monitoring equipment (ODME) is approved for the biofuel blend(s) being shipped. 

“The Interim Guidance is expected to be approved by IMO’s Marine Environment Protection Committee (MEPC 83) in April,” IBIA added. 

“IBIA’s membership represents stakeholders from across the global marine fuel value chain, and being able to draw on this technically strong and credible resource will, in its role of having consultative status to the IMO, mean that IBIA will continue to bring important matters to the attention of the wider IMO membership for due consideration.”

 

Photo credit: International Bunker Industry Association
Published: 11 February, 2025

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