Connect with us

Business

JLC China Bunker Market Monthly Report (October, 2020)

Sales of bunker fuel fell as demand was tepid in October amid sluggish demand for transport due to falling international trade activities as a result of COVID-19.

Admin

Published

on

Screen Shot 2020 11 11 at 2.24.08 PM

Beijing-based commodity market information provider JLC Network Technology Co. on Wednesday (11 November) shared its JLC China Bunker monthly report for October with Manifold Times through an exclusive arrangement:

JLC China Bunker Market Monthly Report (October, 2020)

 Highlights

Demand and Supply

Bunker Fuel Demand 

Bonded bunker fuel sales drop in October

In October, China’s bonded bunker fuel sales fell to 1.22 million mt, JLC data showed. Sales of bonded bunker fuel dropped as demand was tepid in October amid sluggish demand for transport due to falling international trade activities as a result of COVID-19. Besides, most Chinese ports were closed for refueling during the long holiday in early October and strong winds affected port operation at the end of the month, which dampened demand. Chimbusco and Sinopec sold about 502,100 mt and 483,000 mt of bonded bunker fuel, respectively. Bonded bunker fuel sales were about 54,500 mt for SinoBunker and 35,000 mt for China ChangJiang Bunker (Sinopec). New enterprises in the China (Zhejiang) Pilot Free Trade Zone sold 149,000 mt.

China’s bonded bunker fuel sales dropped to 1.41 million mt in September, down by 17.58% month on month, according to GAC data. In September, demand was underpinned by term contracts and gained some support by demand that was switched from Hong Kong ports due to COVID-19. Although sales of bonded bunker fuel at ports in Qingdao, Lianyungang, Zhoushan and Xiamen hit new highs, due to delays in customs clearance, sales recorded by customs were lower than actual sales in September. Specifically, bonded bunker fuel sales were 577,700 mt for Sinopec, 592,700 mt for Chimbusco, 42,800 mt for SinoBunker, 38,300 mt for China ChangJiang Bunker (Sinopec) and 156,500 mt for new enterprises in the China (Zhejiang) Pilot Free Trade Zone.

Screen Shot 2020 11 11 at 2.25.48 PM

Screen Shot 2020 11 11 at 2.26.05 PM

Domestic bunker fuel demand stabilizes in October

Domestic bunker fuel demand was largely unchanged in October. End users' consumption of domestic-trade heavy bunker fuel was about 290,000 mt in the month, flat from the previous month. The demand for light bunker fuel was 110,000 mt in October, up by 10,000 mt from September. On one hand, some downstream traders capitalized on lower prices and increased purchases. On the other hand, berthing and refueling operation in the southern region was impeded by typhoon. Some freight capacity was idle due to thin demand for cargoes. Some traders were cautious about trading amid prevailing bearish sentiments.

Bunker Fuel Supply

Bonded bunker fuel imports slip 3.1% in September

China’s bonded bunker fuel imports were 707,000 mt in September, a dip of 3.1% month on month and a drop of 19.1% year on year, GAC data showed. Bonded bunker fuel imports did not gain an edge over domestic supply as prices of low-sulfur fuel oil in China were lower than those in Singapore. Besides, domestic production of low-sulfur bunker fuel oil stabilized in the month and bonded fuel oil distributors were still consuming stocks they replenished previously. Therefore, China's bonded bunker fuel imports remained low in September.

Specifically, the largest import source for China was still Malaysia with 352,000 mt of bunker fuel. Imports from Singapore rose markedly to 235,000 mt. The imports were 118,000 mt from South Korea. Besides, imports from other countries totaled 2,000 mt.

Screen Shot 2020 11 11 at 2.26.32 PM

Domestic blended bunker fuel supply falls in October

Chinese blending producers supplied a total of around 320,000 mt of heavy bunker fuel in October, a drop of 20,000 mt or 5.88% month on month, JLC data showed. In October, low-sulfur residue oil supply reduced amid tepid buying interest of downstream traders, despite support from high prices. Besides, blending producers were depressed by high blending costs and low blending margins. Bearish sentiments prevailed in the blending market amid falling international crude prices. Supply was dampened as end-user consumption declined. Domestic blended bunker fuel supply dropped but was not tight in October due to slack demand. Light bunker fuel supply was about 120,000 mt, flat from September due to lower diesel bunker prices and tepid demand. 

Screen Shot 2020 11 11 at 2.26.45 PM

Bunker Prices, Profits

Screen Shot 2020 11 11 at 2.27.06 PM

Screen Shot 2020 11 11 at 2.27.25 PM

Screen Shot 2020 11 11 at 2.27.43 PM

Editorial Director

Amanda Zhao

+86-10-84428984

[email protected]  

Sales  Beijing

Tony Tang

+86-10-84428863

[email protected] 

Editor

Rachel Xu

+86-20-38834392

[email protected]  

Singapore

Ginny Teo

+65-31571254

[email protected] 

Tobey Li

+86-10-84428620

[email protected]  

Hong Kong

Jin Byun

+852 9103 1936

[email protected]

[email protected] 

 

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 (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: 11 November, 2020

Continue Reading

Milestone

Singapore retains titles as Best Global Seaport and Best Seaport in Asia

Port of Singapore has been named the “Best Global Seaport” for the third consecutive year and the “Best Seaport in Asia” for the 35th time at the 2023 AFLAS Awards.

Admin

Published

on

By

Singapore retains titles as Best Global Seaport and Best Seaport in Asia

The Maritime and Port Authority of Singapore on Friday (29 September) said the Port of Singapore has been named the “Best Global Seaport” for the third consecutive year and the “Best Seaport in Asia” for the 35th time at the 2023 Asian Freight, Logistics and Supply Chain (AFLAS) Awards.

These accolades recognise the contributions by the Port of Singapore serving as a key node in the global supply chain, and Singapore’s leadership in driving maritime decarbonisation and transformation.

The annual AFLAS Awards is organised by freight and logistics publication, Asia Cargo News, to honour leading service providers in the supply chain community for demonstrating leadership as well as consistency in service quality, innovation, customer relationship management and reliability. Winners were determined by votes cast by readers of the publication.

singapore best seaport 2

Mr Chee Hong Tat, Acting Minister for Transport and Senior Minister of State for Finance, said: “Singapore is honoured to be named the Best Global Seaport and Best Seaport in Asia. These awards are the result of the shared effort and strong collaboration between the Government, industry, unions and workers. We will continue to grow our port as an efficient, sustainable, and trusted node in global supply chains.”

Mr Teo Eng Dih, Chief Executive of MPA, said: “These awards are testament to the partnership and collaboration between Maritime and Port Authority of Singapore (MPA) with industry and international partners, the research and enterprise community, as well as unions. MPA remains committed to fostering an environment that encourages enterprise, innovation, and talent development.”

“We will continue to work with our partners to enhance Singapore’s connectivity, advance digitalisation efforts, and accelerate the decarbonisation of international shipping in line with the 2023 IMO strategy on reduction of GHG emissions from ships.”

Photo credit: Maritime and Port Authority of Singapore 
Published: 29 September, 2023

Continue Reading

Employment

Melvin Lum appointed as KPI OceanConnect Global Accounts Commercial Director in Singapore 

Lum will take on the position of Commercial Director from Thomas Lee who was recently promoted to Head of APAC in a management restructure within KPI OceanConnect.

Admin

Published

on

By

Melvin Lum appointed as KPI OceanConnect Global Account Commercial Director in Singapore

Global marine energy solutions provider KPI OceanConnect on Thursday (28 September) announced the appointment of Melvin Lum as Commercial Director for its Global Accounts team in Singapore.

Lum will take on the position of Commercial Director from Thomas Lee who was recently promoted to Head of APAC in a management restructure within KPI OceanConnect. 

The Global Accounts team is an expert unit within KPI OceanConnect, specialised in providing long-term, tailored fuel strategy solutions to a portfolio of Key Accounts on a global scale. Dedicated regional teams located in London, Houston and Singapore work seamlessly across the world and around the clock to support their clients.

Lum joined KPI OceanConnect in 2021 as Senior Key Account manager and has made a significant contribution to the development of the team and optimisation of the daily operations of the unit in Singapore. Lum has vast experience across the supply chain and previously worked with TotalEnergies, Glencore and Global Energy Group prior to joining KPI OceanConnect.

Henrik Zederkof, Head of Global Accounts at KPI OceanConnect, said: "It is always a pleasure to witness the growth of our team members, and Melvin's progression is no exception. I have full confidence in Melvin's expertise, ability to lead the unit and dedication to his team. I look forward to seeing the progress of Melvin and his team, which will undoubtedly bring significant value to our numerous partners and the wider organisation.”

"Melvin will assume a pivotal role within the Global Accounts management team, leveraging his extensive experience in supply chain management and profound insight into emerging technologies. In his new role, Melvin will further enhance our team's skill set, aligning them with our ongoing objectives of supporting our partners in their green transition and digitalisation endeavours."

Melvin Lum, Commercial Director of KPI OceanConnect Global Accounts in Singapore, said: "I am very appreciative of the support and confidence from our management team as I take on this exciting new role. I am enthusiastic to work with the team as we continue to deliver an exceptional experience to our partners and stakeholders with dedication, innovation and passion."

Photo credit: KPI OceanConnect 
Published: 29 September, 2023

Continue Reading

Biofuel

TotalEnergies Marine Fuels renews ISCC EU certification for bio bunker fuel  

Firm’s operations teams in Singapore and Geneva successfully renewed its ISCC EU sustainability certification for the supply of biofuel bunkers, says Louise Tricoire, Vice President.

Admin

Published

on

By

TotalEnergies Marine Fuels renews ISCC EU certification for bio bunker fuel

Louise Tricoire, Vice President of TotalEnergies Marine Fuels recently said the firm’s operations teams in Singapore and Geneva successfully renewed its International Sustainability and Carbon Certification (ISCC) EU sustainability certification for the supply of biofuel bunkers.

“This means that TotalEnergies Marine Fuels can continue sourcing and supplying marine biofuels in accordance with EU renewable energy regulations ensuring the highest sustainability standards,” she said in a social media. 

“It's the third year in a row that we have successfully renewed this certification, after a deep and comprehensive audit which showed zero non-conformity.”

She added marine biofuels have grown in demand among shipping companies that want to cut greenhouse gas emissions immediately. 

“TotalEnergies Marine Fuels offers marine biofuels commercially in Singapore and we are starting in Europe. This certification enables us to accompany our customers in their decarbonisation journey with the best standard solutions available today.”

Photo credit: TotalEnergies Marine Fuels
Published: 29 September, 2023

Continue Reading
Advertisement

OUR INDUSTRY PARTNERS



Trending