Business

JLC China Bunker Oil Market Monthly Report (April, 2020)

‘Despite the overall weak shipping demand amid the rampant coronavirus, Chinese refiners started mass production of low sulfur bunker fuel,’ reads report.

Published

5 years ago

May 14, 2020

Admin

Beijing-based commodity market information provider JLC Network Technology Co. on Wednesday (13 May) shared its JLC China Bunker monthly report for March with Manifold Times through an exclusive arrangement:

JLC China Bunker Market Monthly Report (Apr, 2020)

Demand and Supply

Bunker Oil Demand

Bonded bunker fuel sales rise in April on competitive prices

In April, China's bonded bunker fuel sales were about 1.15 million mt, JLC data showed. The bonded bunker fuel demand was propped up by competitive prices of low-sulfur bunker fuel. Despite the overall weak shipping demand amid the rampant coronavirus, Chinese refiners started mass production of low sulfur bunker fuel. Benefited from short distance ol supply of fine resources, prices of China's low- sulfur bunker fuel exported through major domestic ports were equivalent to or lower than those from Singapore. With more shares in the market, sales of bonded bunker fuel in April grew slightly. Chimbusco and Sinopec sold aboul 460,000 mt and 448,000 mt of bonded bunker fuel, respectively. New enterprises in the China (Zhejiang) Pilot Free Trade Zone sold 138,000 mt. Sales of China ChangJiang Bunker (Sinopec) and SinoBunker amounted to about 104,000 mt.

China's bonded bunker fuel sales rose to 1,105 million mt in March, up by 5.37% year on year, according to GAC data. With the effective control ol COVID-19 In March, the improving shipping demand on resumption of Chinese ports facilitated the bonded bunker fuel market. Besides, domestic refiners actually engaged in supplying low sulfur bunker fuel, stimulated by the export tax rebate policy. Relying less on imports, China's bonded bunker fuel sales grew in March. Specifically, bonded bunker fuel sales were 442,000 mt for Chimbusco, 438,000 mt for Slnopec, 62,000 mt for China ChangJiang Bunker (Sinopec), 54,000 mt for SinoBunker and 109,000 mt for new enterprises In the China (Zhejiang) Pilot Free Trade Zone.

Domestic bunker fuel demand rallies in April

Domestic bunker fuel demand ralied In April. As operations were returning to normal, bulk demand continued improving, among which demand for coal, metal ore and grain recovered. As a result, coastal transport demand was stable to better and bunker fuel demand recovered briefly.

Besides, some end-users stocked up on low bunker fuel prices, contributing to the ongoing recovery of bunker fuel demand. The demand for dornestic-trade heavy bunker fuel was about 260,000 mt in the month, up by 60,000 mt or 30% from the previous month. The demand for light bunker fuel was 85,000 mt in April, up by 15,000 mt from March on increasing demand amid stable trades when fishermen made purchases mainly based on needs.

Bunker Oil Supply

Bonded bunker fuel imports drop 37.55% In March

China’s bonded bunker fuel imports were 747,200 mt in March, a drop of 37.55% year on year, GAC data showed. Bonded bunker fuel imports plummeted in March on sluggish sentiment and abundant domestic supply. Rampant COVID-19 pandemic overseas and dives of international crude prices suppressed buying interests of bonded bunker fuel traders. Meanwhile, as domestic refiners started mass production of low-sulfur fuel oil under the VAT rebate policy, China relied less on bunker fuel imports.

Affected by the virus, there were great changes in import sources and imports from Southeast Asia slumped. Specifically, the largest import source for China was South Korea with 152,000 mt of bunker fuel, followed by Egypt wlh 134,000 mt. The imports from Malaysia were only 132,000 mt. The imports went 101,000 mt from UAE, 95,000 mt from Indonesia and 53,000 mt from Japan. Besides, there were imports of 30,000 mt, 25,000 mt and 21,000 mt from Russia, Iraq and Singapore, respectively.

Domestic blended bunker fuel supply remains low in April

Chinese blend producers supplied a total of around 300,000 mt of heavy bunker fuel In April, a rise of 70,000 mt or 30.43% month on month, JLC data showed. As restrictions were lifted in most parts, shipping demand was getting back on track and the bunker fuel market was returning to normal. Therefore, domestic trade bunker fuel supply in April rose slightly than March. However, affected by dives of international crude prices, bunker fuel prices stayed low, and most blend producers in Northeast China halted operations on declining profits at the end of the month. On the whole, domestic trade bunker fuel supply stayed low in April. Light bunker fuel supply was about 10,000 mt, up by 5,000 mt from March.

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Bunker prices, profits

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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.

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Published: 14 May, 2020

Bunker Fuel

TMD Energy becomes first Malaysian bunker supplier to list on NYSE American

Straits Energy Resources’ subsidiary announces that its shares have been listed on 21 April, becoming the first Malaysian marine bunker supplier to achieve a listing on a major US exchange.

Published

7 hours ago

April 22, 2025

Admin

TMD Energy Limited (TMD Energy), a Malaysia and Singapore-based provider of integrated marine bunkering services and a Straits Energy Resources Berhad (SER) subsidiary, on Tuesday (22 April) announced that its shares have been listed on 21 April and began trading on the NYSE American under the ticker symbol “TMDE”.

Dato’ Sri Ron Ho Kam Choy, Chairman, Executive Director, and Chief Executive Officer of TMD Energy, said: “We are proud to become the first Malaysian marine bunker supplier to achieve a listing on a major US exchange, reinforcing our position as one of the industry’s leading players.

“Leveraging Malaysia’s strategic location along major shipping routes including the Straits of Malacca and the South China Sea, as well as resilient demand for bunker fuel in the region and globally, we are well positioned for further expansion. On top of that, TMD Energy is also the first Malaysian company to list on the NYSE American.

“Our listing in NYSE American will help us to enhance our international profile, expand our reach, capture new markets, and deliver sustainable, higher returns to our shareholders.”

TMD Energy’s share price opened at USD 3.26 on Monday, rising to an all-time high of USD 4.12 on its market debut before closing at USD 3.63, which was 11.69% higher than its initial public offering (IPO) price of USD 3.25 per share. This gave the company a market capitalisation of USD 83.85 million (equivalent to approximately MYR 367.2 million) on its first day as a publicly listed company.

TMD Energy’s IPO was priced at USD 3.25 per share, and total gross proceeds (excluding the over-allotments) before deducting underwriting discounts and other related expenses were approximately USD 10.08 million (equivalent to approximately MYR 44.13 million).

Proceeds from the IPO will be used for the purchase of cargo oil; defraying listing expenses; and working capital and other general corporate purposes.

The company has granted the underwriter a 45-day option to purchase up to an aggregate of 465,000 additional shares to cover over-allotments at the IPO price, If the underwriter exercises their option to purchase the additional shares in full, the total gross proceeds before deducting underwriting discounts and other related expenses from the offering are expected to be approximately USD 11.59 million.

Dato’ David Yoong Leong Yan, Executive Director of TMD Energy, said: “Our debut on the NYSE American is a key milestone in our journey of growth. While continuing to drive strong organic growth, as part of our strategic growth initiatives, we remain focused on identifying and pursuing strategic mergers and acquisition opportunities that align with our long- term vision and strengthen our regional presence.”

Manifold Times previously reported SER announcing its proposal to list its oil bunkering segment via the listing and quotation of the ordinary shares in its 76.68%-owned subsidiary, TMD Energy, on the New York Stock Exchange American (NYSE American).

TMD Energy and its subsidiaries (TMD Energy Group) are mainly involved in marine fuel bunkering services specialising in the supply and marketing of marine gas oil and marine fuel oil to various types of ships and vessels at sea. In addition, the company provides vessel chartering services and vessel management services.

TMD Energy Group operates in 19 ports across Malaysia, with a fleet of 15 well-maintained bunkering vessels with capacities ranging from 540 dwt to 7,820 dwt, of which nine are double-bottom and double-hull vessels with an average cargo-carrying capacity of 4,200 dwt each. Its customers include ship owners and operators, shipping lines, logistics and freight companies, as well as oil and gas traders or brokers.

TMD Energy’s growth strategy includes expanding its market presence across Southeast Asia, growing its bunkering fleet, providing ship management services to external customers and diversifying its fuel offering to include eco-friendly alternative fuels such as biodiesel.

TMD Energy is part of SER, a Fortune Southeast Asia 500 company listed on the ACE Market of Bursa Malaysia Securities.

Photo credit: TMD Energy
Published: 22 April, 2025

LNG Bunkering

New MOL vessel to be supplied LNG bunker fuel in Japan before voyage to Australia

After departing from Saijo Shipyard, LNG fuel will be supplied directly to “Verde Heraldo” through shore-to-ship bunkering at Senboku Terminal of Osaka Gas, and is then scheduled to sail for Australia.

Published

8 hours ago

April 22, 2025

Admin

New MOL vessel to be supplied LNG bunker fuel in Japan before voyage to Australia

Mitsui OSK Lines (MOL) on Friday (18 April) said the naming and delivery ceremony for the LNG-fuelled Capesize bulker, which MOL ordered for JFE Steel Corporation, was held at the Saijo Shipyard of Imabari Shipbuilding.

The vessel was named the Verde Heraldo, which means “Green Pioneer” in Spanish, by JFE Steel President and CEO Masayuki Hirose. MOL executives including President & CEO Hashimoto were also on hand for the ceremony.

After departing from Saijo Shipyard, LNG fuel will be supplied directly to the vessel through shore-to-ship bunkering at the Senboku Terminal of Osaka Gas, and is then scheduled to sail for Australia.

The Verde Heraldo will sail under long-term transport contracts to supply raw materials for JFE Steel's mills, providing both reduced environmental impact and safe and reliable marine transport services.

About Verde Heraldo

LOA: 299.99 m
Breadth: 50.00 m
Draft: 18.436 m
Deadweight tonnage: 210,321 tonnes
Shipyards: Imabari Shipbuilding and Nihon Shipyard

Photo credit: Mitsui OSK Lines
Published: 22 April, 2025

Business

ENGINE: Adverse weather keeps bunker operations suspended in Zhoushan’s OPL area

Bunker deliveries at Zhoushan’s Tiaozhoumen and Xiazhimen outer anchorages have been suspended due to rough weather; some suppliers expect to fully resume operations in OPL area by 22 April.

Published

8 hours ago

April 22, 2025

Admin

Bunker deliveries at Zhoushan’s Tiaozhoumen and Xiazhimen outer anchorages have been suspended since Saturday due to rough weather, according to a source on Monday (21 April).

However, bunker operations have resumed this morning at Zhoushan’s more sheltered Xiushandong anchorage and the inner anchorage of Mazhi.

The port is currently experiencing strong wind gusts of 24–27 knots and swells approaching one meter.

Several suppliers expect to fully resume bunkering operations in the OPL area by tomorrow (22 April), the source said.

By Tuhin Roy

Photo credit: Manifold Times
Published: 22 April, 2025