Connect with us

Bunker Fuel

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.

Admin

Published

on

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%.

Screenshot 2023 12 08 at 2.34.59 PM
Screenshot 2023 12 08 at 2.35.10 PM

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.

Screenshot 2023 12 08 at 2.35.28 PM

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.

Screenshot 2023 12 08 at 2.35.41 PM

Bunker Prices, Profits

Screenshot 2023 12 08 at 2.36.10 PM
Screenshot 2023 12 08 at 2.36.17 PM
Screenshot 2023 12 08 at 2.36.29 PM

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 (October 2023)
Related: JLC China Bunker Fuel Market Monthly Report (September 2023)
Related: JLC China Bunker Market Monthly Report (August 2023)
Related: JLC China Bunker Market Monthly Report (July 2023)
Related: JLC China Bunker Market Monthly Report (June 2023)
Related: JLC China Bunker Fuel Market Monthly Report (May 2023)
Related: JLC China Bunker Market Monthly Report (March 2023)
Related: JLC China Bunker Market Monthly Report (February 2023)
Related: JLC China Bunker Market Monthly Report (January 2023)
Related: JLC China Bunker Market Monthly Report (December 2022)
Related: JLC China Bunker Market Monthly Report (November 2022)
Related: JLC China Bunker Market Monthly Report (October 2022)
Related: JLC China Bunker Market Monthly Report (September 2022)
Related: JLC China Bunker Market Monthly Report (August 2022)
Related: JLC China Bunker Market Monthly Report (July 2022)
Related: JLC China Bunker Market Monthly Report (June 2022)
Related: JLC China Bunker Market Monthly Report (May 2022)
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: 8 December, 2023

Continue Reading

Biofuel

GCMD concludes its final biofuel blend supply chain trial with Hapag-Lloyd

bp provided the B30 biofuel blend to the “TIHAMA”, a 19,870 TEU container vessel operated by Hapag-Lloyd in final trial; marks the end of a series of trials initiated in July 2022.

Admin

Published

on

By

GCMD concludes its final biofuel blend supply chain trial with Hapag-Lloyd

The Global Centre for Maritime Decarbonisation (GCMD) on Thursday (18 July) said it has successfully completed its final supply chain trial for biofuel blended with very low sulphur fuel oil (VLSFO). 

This marks the end of a series of trials initiated in July 2022 as part of a larger pilot to develop a framework to provide quality, quantity and GHG abatement assurances for drop-in fuels.

In this final trial, bp provided the B30 biofuel blend to the TIHAMA, a 19,870 twenty-foot equivalent unit (TEU) container vessel operated by Hapag-Lloyd.

The biofuel component used is certified to the International Sustainability & Carbon Certification (ISCC) standard – a multistakeholder certification scheme for biobased materials. The biofuel component comprised neat Fatty Acid Methyl Ester (FAME) produced from food waste.

Authentix, a tracer solutions provider, supplied and dosed the FAME with an organic-based tracer at the storage terminal outside the Netherlands. The dosed FAME was then transported to the Port of Rotterdam for blending with VLSFO to achieve a B30 blend, before the blend was bunkered onboard the TIHAMA.

Similar to previous trials, GCMD engaged fuel testing company Veritas Petroleum Services (VPS) to witness the operations at all stages – from biofuel cargo transfer to bunkering. VPS also collected and conducted extensive laboratory tests on samples of the biofuel and biofuel blend collected at pre-determined points along the supply chain to assess quality per Standards EN 14214 and ISO 8217.

With well-to-wake emissions of 13.74 gCO2e/MJ, the neat FAME presented a 85.4% emissions reduction compared to the emissions of the fossil marine fuel. The reduced emissions complies with the MEPC 80, which requires a minimum emissions reduction of 65% in order for biofuels to be classified as sustainable.

GCMD and Hapag-Lloyd determined that consumption of the 4,500 MT B30 blend of FAME and VLSFO resulted in 27.9% emissions reduction compared to sailing on VLSFO.

A newly developed tracer deployed with this supply chain

GCMD collaborated with Authentix to develop and deploy a new organic-based tracer to authenticate the origin and verify the amount of FAME present in the blend. The proprietary tracer blended homogeneously with FAME and was detected at expected concentrations at all sampling points along the supply chain.

This trial marks the first deployment of this tracer in a marine fuel supply chain. Previously, similar tracers were used to authenticate and quantify biofuels in road transport and LPG supply chains.

Development of a comprehensive biofuels assurance framework underway

With the completion of this trial, GCMD has deployed a diverse range of tracer technologies, including synthetic DNA and element-based tracers, in addition to the organic-based tracer used in this trial. The trials have also included the development of a chemical fingerprinting methodology and the evaluation of lock-and-seal and automatic identification systems (AIS) as additional solutions to ensure the integrity of the biofuels supply chain.

Learnings on tracer limitations and benefits will be incorporated into a framework that recommends appropriate use to ensure consistent and robust performance. This effort will complement existing ISCC by providing additional supply chain assurance through physical traceability.

The insights from these trials will be shared in a series of reports covering issues, such as traceability, biofuel degradation, supply chain optimisation and abatement costs. These findings will culminate in a comprehensive assurance framework to provide guidance on biofuels use, slated for release in the fourth quarter of 2024.

 

Photo credit: Global Centre for Maritime Decarbonisation
Published: 19 July 2024

Continue Reading

Ammonia

MPA, ITOCHU and partners sign MoU on ammonia-fuelled bulk carriers study

As a government agency, MPA,will review and provide their views to the designs of the ammonia-fuelled ships to ensure their safe operations, says ClassNK.

Admin

Published

on

By

RESIZED venti views

Classification society ClassNK on Thursday (18 July) said it signed a Memorandum of Understanding (MoU) with ITOCHU Corporation, Nihon Shipyard Co., Ltd., and Maritime and Port Authority of Singapore (MPA) regarding a joint study for the design and safety specifications of ammonia-fuelled ships which are under development by ITOCHU and partners.

“The discussion for a specification of ammonia-fuelled ships with a governmental body related to their operation is essential for a social implementation of ammonia-fuelled ships,” ClassNK said. 

“As one of parties of the MoU, MPA, a government agency overseeing the world’s busiest bunkering hub, will review and provide their views to the designs of the ammonia-fuelled ships to ensure their safe operations.”

The MoU is based on the premise that 200,000 deadweight ton class bulk carriers will be built by Nihon Shipyard with an ammonia dual-fuelled engine.

“The necessary clarifications of the specification for the ammonia-fueled ship to carry out ammonia bunkering in Singapore will be conducted among parties of this MoU, for the commercialisation of ammonia-fuelled ships,” ClassNK added.

 

Photo credit: Venti Views on Unsplash
Published: 19 July 2024

Continue Reading

Biofuel

“K” Line to use biofuel on three Gram Car Carriers-chartered vessels in Singapore

Biofuel will be supplied to the sister vessels “Viking Ocean”, “Viking Diamond” and “Viking Coral” while bunkering in Singapore, says Gram Car Carriers.

Admin

Published

on

By

“K” Line to use biofuel on three Gram Car Carriers-chartered vessels in Singapore

Norwegian transportation firm Gram Car Carriers (GCC) on Thursday (18 July) said Kawasaki Kisen Kaisha (“K” LINE) will use biofuel on three vessels chartered from GCC from July onwards. 

“The biofuel will be supplied to the sister vessels Viking Ocean, Viking Diamond and Viking Coral while bunkering in Singapore, an Asian hub for marine biofuels,” GCC said on its social media. 

“The use of biofuel is a key environmental initiative to reduce emissions across the entire value chain (well-to-exhaust) and an effective way of transitioning to low-carbon marine fuels amid globally tightening environmental regulations.”

“We support the green mobility shift. This means that GCC commit to supporting the transition of both vehicles and their logistic chain towards a zero-emission future in close cooperation with leading customers such as K-Line,” said Georg A. Whist, CEO of GCC.

 

Photo credit: Gram Car Carriers
Published: 19 July 2024

Continue Reading
Advertisement
  • EMF banner 400x330 slogan
  • Aderco advert 400x330 1
  • Consort advertisement v2
  • SBF2
  • RE 05 Lighthouse GIF
  • v4Helmsman Gif Banner 01

OUR INDUSTRY PARTNERS

  • SEAOIL 3+5 GIF
  • Triton Bunkering advertisement v2
  • HL 2022 adv v1
  • 102Meth Logo GIF copy
  • Singfar advertisement final


  • Auramarine 01
  • Innospec logo v6
  • metcore
  • E Marine logo
  • PSP Marine logo
  • pro liquid
  • Energe Logo
  • Synergy Asia Bunkering logo MT
  • Golden Island logo square
  • CNC Logo Rev Manifold Times
  • Headway Manifold
  • 400x330 v2 copy
  • Advert Shipping Manifold resized1
  • VPS 2021 advertisement

Trending