Beijing-based commodity market information provider JLC Network Technology Co. on Monday (13 April) shared its JLC China Bunker monthly report for March with Manifold Times through an exclusive arrangement:
JLC China Bunker Market Monthly Report (Mar, 2020)
Demand and Supply:
Bunker Oil Demand
Bonded bunker fuel sales rally In March on demand recovery
In March, China’s bonded bunker fuel sales were about 500,000 (mt) metric tonnes, JLC data showed. The bonded bunker fuel demand rallied in March due to seasonal demand and effective control of the virus. Chinese ports resumed normal operation and shipping demand Improved. However, sales of bonded bunker fuel in March stayed low amid crashes of international crude prices, the explosive spread of the virus overseas and slowing global economic growth. Chimbusco and Sinopec sold 190,000 mt and 180,000 mt of bonded bunker fuel, respectively. Sales of other suppliers amounted to about 13,000 mt.
China’s bonded bunker fuel sales climbed to 1,604,700 mt in January-February, up by 18.08% from the same period last year, according to GAC data, but dropped significantly compared to previous months. Bonded bunker fuel market retreated In January as January was the off-peak season for the shipping market, and most traders rest In the Spring Festival holidays In January. In February, with the outbreak of COVID-19 in China, the number of international ships at Chinese ports slumped, and port operation was affected by strict inspections against the virus. Specifically, bonded bunker fuel sales were 633,800 mt for Chimbusco, 562,100 mt for Sinopec, 84,600 mt for China ChangJiang Bunker (Sinopec), 81,700 mt for SinoBunker and 242,500 mt for new enterprises in the China (Zhejiang) Pilot Free Trade Zone.
Domestic bunker fuel demand recovers in March
Domestic bunker fuel demand recovered slightly In March. Downstream enterprises resumed normal operation amid the effective control of the virus. However, bunker fuel demand was slim as coastal bulk demand stayed lackluster when coronavirus-related restrictions were not lilted completely.
Besides, with epic dives of International crude prices, bunker fuel prices slumped by CNY1 ,100/mt (USD 156) in March. Trades were thin as end-users showed no purchasing interests. The demand for domestic-trade heavy bunker fuel was about 200,000 mt in March, up by 20,000 mt or 11.1% from the previous month. The demand for light bunker fuel was 70,000 mt in March, up by 5,000 mt from February as fishermen made small purchases based on their needs
Bunker Oil Supply
Bonded bunker fuel Imports grow 8.73% in January-February
China’s bonded bunker fuel imports reached 2,531,300 mt in January-February, a rise of 8.73% from the same period last year, GAC data showed. Bonded bunker fuel imports surged in January on the strong demand for low-sulphur fuel after IMO became effective. However, imports dropped in February as Chinese ports and the shipping market were hit by the outbreak of COVID-19.
China imported 1,318,000 mt of bunker fuel from Malaysia in January-February, making up 52% of the total. The imports from UAE were 256,000 mt, about 12% of the total. Those from South Korea were 276,700 mt, accounting for 11% of the total. The imports were 202,000 mt from Singapore, 169,000 mt from Japan, and 149,000 mt from Denmark. Besides, there were imports of 67,000 mt and 30,000 mt from Russia and Indonesia, respectively.
Domestic blended bunker fuel supply stays low In March
Chinese blending producers supplied a total of around 230,000 mt of heavy bunker fuel in March, a rise of 30,000 mt or 15% month on month, JLC data showed. Domestic trade bunker fuel supply recovered amid operation resumption and increasing purchases of blendstock amid dives of blendstock prices, but the recovery was limited as some blended producers halted operations when bunker fuel prices dropped to the lowest level. Light bunker fuel supply was about 95,000 mt, up by 5,000 mt from the previous month.
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 market. Our expertise covers oil, gas. coal, chemlcal, 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 April, 2020