JLC China Bunker Market Monthly Report (October 2023)
Country tallied roughly 1.63 million mt of bonded bunker fuel sales in the month, with the daily sales down by 5.74% from September to 52,419 mt, JLC’s data shows.
Beijing-based commodity market information provider JLC Network Technology Co. recently shared its JLC China Bunker monthly report for October 2023 with Manifold Times through an exclusive arrangement:
Bunker Fuel Demand
China’s bonded bunker fuel sales decrease in October
China’s bonded bunker fuel sales decreased further in October, because of tighter supply.
The country tallied roughly 1.63 million mt of bonded bunker fuel sales in the month, with the daily sales down by 5.74% from September to 52,419 mt, JLC’s data shows.
The sales by Chimbusco, Sinopec Zhoushan and SinoBunker slid to 520,000 mt, 580,000 mt and 70,000 mt in the month respectively, while those by China ChangJiang Bunker (Sinopec) stabilized at 35,000 mt. At the same time, enterprises with regional bunkering licenses sold about 420,000 mt of bonded bunker fuel, up from 388,300 mt in September.
China’s bonded bunker fuel sales continued to drop, as low-sulfur fuel oil supply tightened and prices stayed relatively high. Meanwhile, the barging capacity at certain ports was affected by bad weather, which also depressed the sales.
China’s bonded bunker fuel exports inch down in Jan-Sept
China’s bonded bunker fuel exports edged down in the first nine months of this year, mainly because of a decline in domestic low-sulfur fuel oil (LSFO) output.
The country exported about a total of 15.24 million mt of bonded bunker fuel in January-September, a dip of 0.66% from the same months in 2022, JLC estimated, with reference to data from the General Administration of Customs of PRC (GACC).
Among the exports were 14.44 million mt of heavy bunker fuel and 802,600 mt of light bunker fuel, which accounted for 94.73% and 5.27% of the total, respectively.
Regarding the exports by supplier, enterprises with national bunkering licenses exported about 12.15 million mt of bonded bunker fuel in the nine months, accounting for 79.69%, while those with regional bunkering licenses supplied about 3.10 million mt, accounting for 20.31%.
Chinese refiners reduced their bonded bunker fuel exports in the first three quarters of this year, as domestic supply decreased amid falling LSFO production. Refineries lowered their LSFO output in the period when their production enthusiasm was greatly depressed by less considerable margins. The country produced about 11.10 million mt of LSFO in January-September, a cut of 5.45% year on year, JLC’s data shows.
In September alone, China’s bonded bunker fuel exports settled at 1.58 million mt, down by 2.79% from the previous month and 21.13% from a year earlier. Heavy bunker fuel exports amounted to 1.47 million mt, accounting for 92.73% of the total, while light bunker fuel exports stood at 115,200 mt, occupying 7.27%.
Suppliers with national bunkering licenses tallied approximately 1.18 million mt in the month, accounting for 74.23% of the country’s total, with Sinopec Fuel Oil and Chimbusco taking 64.35%. At the same time, enterprises with regional licenses exported about 408,300 mt, accounting for 25.77%.
Domestic-trade bunker fuel demand extends gains in October
Domestic-trade bunker fuel demand extended gains in October, because of post-holiday restocking.
Domestic-trade heavy bunker fuel demand settled at 400,000 mt in the month, rising by 40,000 mt or 12.12% month on month, JLC’s data shows. Some shipowners increased purchases after the holiday for the National Day, as they had run out of stockpiles. Meanwhile, high-sulfur fuel oil prices fell to a relatively low level, which also attracted buyers to make deals.
Domestic-trade light bunker fuel demand surged to 165,000 mt in October, growing by 25,000 mt or 19.23% from a month earlier, the data indicates. Downstream buyers showed higher buying interest when MGO prices rolled back. At the same time, shipping demand at inland ports increased, with coal transportation speeding up amid the heating season in North China.
Bunker Fuel Supply
China boosts its September bonded bunker fuel imports
China boosted its bonded bunker fuel imports month on month in September, as domestic low-sulfur fuel oil (LSFO) output decreased rapidly.
The country tallied about 389,800 mt of bonded bunker fuel imports in the month, surging by 27.18% month on month, JLC estimated, with reference to data from the General Administration of Customs of PRC (GACC).
Domestic refineries slowed down their LSFO production amid bad margins, leading refiners to import more bonded low-sulfur bunker fuel to meet demand. The country produced about 1.17 million mt of LSFO in the month, with the daily output dropping by 5.40% month on month to 39,000 mt, JLC’s data indicates. Meanwhile, some distributors expanded their bonded low-sulfur bunker fuel imports as more unit maintenance and export quota tightness triggered fears of a further decline in LSFO output in the fourth quarter.
Imports of high-sulfur bunker fuel and marine gas oil (MGO) largely stabilized at a normal level.
Russia surpassed Malaysia and became the largest supplier by shipping 214,000 mt of bonded bunker fuel to China, accounting for 54.9% of China’s total imports. Malaysia slipped to the second place with 61,800 mt, accounting for 15.9%, while Singapore ranked third with 60,900 mt, occupying 15.6%. Shipments from South Korea were reduced to only 53,100 mt, accounting for 13.6% and bringing the country to the fourth place.
On a year-on-year comparison, however, China’s bonded bunker fuel imports fell by 8.90%.
China’s bonded bunker fuel imports totaled 2.88 million mt in the first nine months of this year, plunging by 19.18% from the corresponding months in 2022, decelerating from a 20.58% slump in January-August.
Domestic-trade bunker fuel supply continues to grow in October
Domestic-trade bunker fuel supply continued to grow in October, as blenders boosted production when their blending margins for bunker fuel were widened by a drop in blendstock prices.
Chinese blenders supplied about 450,000 mt of domestic-trade heavy bunker fuel in the month, a boost of 60,000 mt or 16.22% month on month, JLC’s data indicates.
Similarly, refineries ramped up their light bunker fuel production amid relatively fair margins. Domestic-trade marine gas oil (MGO) supply rose to 180,000 mt in October, an uplift of 20,000 mt or 11.76% from September.
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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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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.
Port of Tanjung Pelepas (PTP) on Sunday (16 February) said it successfully conducted its first Simultaneous Operations (SIMOPS) of liquefied natural gas (LNG) bunkering.
This significant achievement involved the LNG dual-fuel container ship Bangkok Express, operated by Hapag-Lloyd AG, and the LNG bunker vessel MT Paolina Cosulich.
“This milestone underscores PTP's dedication to enhancing our competitive edge in the global market by facilitating clean and efficient maritime operations,” the port said in a social media post.
“We are proud to have partnered with PETCO Trading Labuan Co., Ltd. (PTLCL) and Hapag-Lloyd on this pioneering initiative.”
Manifold Times previously reported the port also achieving its first LNG bunkering operation last year.
The port completed its first-ever ship-to-containership methanol bunkering operation in November last year.
Manifold Times previously reported the port achieving its first LNG bunkering operation last year.
Kunlun Energy wraps up first STS offshore LNG bunkering operation in Hong Kong
Kunlun Energy, a red-chip controlled by PetroChina, said its bunkering vessel refuelled container ship “Zim Haifa Blue Stone” with 2,200 metric tonnes of LNG bunker fuel in a seven-hour operation.
Kunlun Energy, a red-chip controlled by PetroChina, on Monday (17 February) said it completed Hong Kong’s first ship-to-ship (STS) offshore liquefied natural gas (LNG) bunkering operation on 14 February.
Kunlun Energy's 8,300 m3 capacity LNG bunkering vessel refuelled the container ship Zim Haifa Blue Stone with 2,200 metric tonnes (mt) of LNG in a seven-hour operation.
The bunkering vessel involved in the operation is operated by a Kunlun Energy subsidiary.
According to a PetroChina official, the receiving vessel Zim Haifa Blue Stone departed from Busan, South Korea, on 3 February and passed through Qingdao, Shanghai, and Ningbo before arriving in Hong Kong on 12 February.
Its final destination is Istanbul, Turkey. This refuelling operation can meet the ship's fuel needs for the entire journey.
“The successful implementation of this "ship-to-ship" offshore LNG bunkering operation is another example of Kunlun Energy's efforts to help improve the international shipping hub of the Guangdong-Hong Kong-Macao Greater Bay Area,” Kunlun Energy said.
“It is expected to attract more green-fuel vessels to pass through Hong Kong, encourage more environmentally friendly companies to conduct business in Hong Kong, accelerate transformation and technological innovation in the shipping industry, and promote the construction of Hong Kong as a green and smart port.”
“This operation holds significant importance for Hong Kong's push toward a green and sustainable shipping industry.”
Photo credit: Kunlun Energy Published: 18 February, 2025
Wallenius Wilhelmsen on Monday (17 February) said it has successfully completed its first biofuel bunkering trial at the Port of Yokohama in Japan.
M/V Tamesis bunkered 400 metric tonnes (mt) of B24 VLSFO blended biofuel, supplied by Mitsubishi Corporation Energy.
This milestone is part of Wallenius Wilhelmsen’s ongoing efforts to reduce its environmental impact and promote sustainability in shipping.
“As part of our commitment to reducing greenhouse gas emissions, we have expanded our locations for biofuel supply. Since 2023, the expansion has included key ports in Belgium, Korea and Singapore,” the company said.
“Expanding to Japan enhances our ability to operate more efficiently and sustainably across our global network.”
Wallenius Wilhelmsen has set ambitious emission reduction targets to reach net-zero by 2040. This includes a 40% absolute reduction of well-to-wake greenhouse gas emissions by 2030 compared to our 2022 baseline, as approved by the Science Based Targets initiative.
Yasuyuki Sakurai, Senior Manager, the Orcelle Accelerator taskforce at Wallenius Wilhelmsen, said: “Achieving these targets require a major shift in energy sources from conventional fuels to low and zero-carbon alternatives. Expanding supply locations and securing sufficient biofuels remain a priority, and we are pleased to have conducted our first B24 VLSFO blended biofuel bunkering trial in Yokohama.”
“While our Reduced Carbon Service customers fully support our mass-balance concept, ensuring sufficient biofuel usage across our entire fleet and trade lanes is key to achieving our long-term sustainability goals.”
Mitsuo Ueda, General Manager of Mitsubishi Corporation Energy, said: “In anticipation of growing demand for biofuel in the marine sector, we have begun storing biofuel at our oil terminal in Onahama (Fukushima Prefecture) and supplying B24 in Tokyo Bay using our barges.:
“We deeply admire Wallenius Wilhelmsen’s leadership in the decarbonisation of the shipping industry and remain committed to playing our part in creating a more sustainable future. We will continue striving to meet industry needs through a stable supply of biofuels and contribute to the realisation of a carbon-neutral society.”
This milestone was achieved through close collaboration between Wallenius Wilhelmsen’s Energy Sourcing team and the Orcelle Accelerator taskforce, which has worked for the past two years to establish biofuel bunkering capabilities in Japan.