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.
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.
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.
Bunker Prices, Profits
Editorial Director
Amanda Zhao +86-10-84428984 amandaihao@jlcint.com |
Sales Beijing
Tony Tang +86-10-84428863 tonytang@jlcint.com |
Editor
Rachel Xu +86-20-38834392 rachelxu@jlcint.com |
Singapore
Ginny Teo +65-31571254 ginnyteo@jlcinl.com |
Tobey Li
+86-10-84428620 tobeyli@jlcint.com |
Hong Kong
Jin Byun +852 9103 1936 sangjin.byun@jlcint.com service@jlcint.com
|
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
‘We need to keep in mind the saying “penny wise pound foolish”,’ says Captain Rahul Choudhuri, the Managing Director AMEA at VPS, who stresses on the essential role of the Bunker Surveyor.
Legal representatives met at the High Court on Tuesday to discuss the discharge of KPMG liquidators from all liability in respect of conduct in the course of winding up, show court documents.
Global sentence adjusts to 80 month’s imprisonment term for both Chang and Koh under application of the Masui sentencing framework; fine of SGD 6.2 million against Chang remains unchanged.
Company has been ranked EIGHTH for 2020; ‘we are humbled and proud to be placed amongst the top ten winners of the Enterprise 50 Awards,’ says Satnam Singh, COO, Sing Fuels.
Mads Bjornebye, Manager of Bunker Services at Teekay Tankers Ltd, shares about the company’s perspective of e-BDNs, bunker purchasing & planning tools, while offering his thoughts on future marine fuels.
Maritime sector may find it increasingly challenging to manage bunker prices, Dennis Ho, Managing Director at ElbOil Singapore tells Singapore bunkering publication Manifold Times.