Beijing-based commodities market intelligence provider JLC Network Technology Co. recently shared its JLC China Bunker monthly report for May 2021 with Manifold Times as part of an exclusive deal:
Request for bunker fuel
In-bond bunker fuel sales edged down in May
China’s bunker fuel sales fell from around 0.15 million (ml) mt to 1.55 million mt in May, according to JLC data. Bunker fuel sales declined slightly when demand was stable to weaker. Some bunkering companies in Guangzhou, Shenzhen and Xiamen have been moved to Zhoushan and other ports in northern China, given the recurrence of Covid-19 cases. Chimbusco and Sinopec sold approximately 620,000 mt and 660,000 mt of bonded bunker fuel, respectively. Bonded bunker fuel oil sales were around 70,000 mt for SinoBunker and 39,000 mt for China ChangJiang Bunker (Sinopec). New companies in the China Pilot Free Trade Zone (Zhejiang) sold 155,800 tons.
China’s bonded bunker fuel exports in April 2021 stood at 2.04 million tonnes, up 13.8 percent month-on-month and 30.69 percent year-on-year, according to GAC data. Bonded bunker fuel oil sales were supported by strengthening demand and relatively low prices at Chinese ports in April.
Bunker sales for SOEs and Zhoushan enterprises were 1.88 million tons and 160,200 tons, accounting for 92.15% and 7.85%. More specifically, bonded bunker fuel sales were 767,600 mt for Sinopec, 950,400 mt for Chimbusco, 125,900 mt for SinoBunker, 36,000 mt for China ChangJiang Bunker (Sinopec).
Domestic demand for bunker fuel increases in May
Domestic demand for bunker fuel increased slightly from April. There were more inquiries from downstream buyers due to high international crude prices. Rising prices for steel products and freight also boosted demand for shipping. The consumption of end-users of domestic heavy fuel oil was around 370,000 mt in the month, up 40,000 mt from the previous month. Some diesel buyers restocked amid bullish sentiment. Demand for light bunker fuel was 140,000 mt in May, up 10,000 mt from the previous month.
Bunker fuel supply
Bonded bunker fuel imports drop in April 2021
China’s bonded bunker fuel imports stood at 812,400 tonnes in April, down 16.71 percent month-on-month and 21.1 percent year-on-year, according to GAC data.
Chinese imports of bunker fuel fell in April as domestic production of low-sulfur fuel increased. In addition, bonded bunker fuel traders reduced the volume of imports as Sinopec reduced its price of low sulfur fuel, making it lower than Singapore and neighboring countries.
Specifically, the largest source of imports for China was still Malaysia with 567,300 tonnes of bunker fuel. Imports from Singapore, South Korea and Iraq were 90,500 mt, 85,800 mt and 68,800 mt respectively.
Domestic supply of blended bunker fuels increases in May
Chinese blend producers supplied a total of around 380,000 tonnes of heavy bunker fuel in May, up 30,000 tonnes from April, according to JLC data. The supply of low sulfur residual oil increased in May. The light coal tar and coal-based diesel were mainly brought to the hydrofining field instead of mixing due to their high prices. The supply of shale oil was normal. The supply of heavy bunker fuel has increased thanks to abundant raw materials and stronger demand. Domestic light oil supply was around 150,000 mt in May, up 10,000 mt from the previous month.
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JLC Network Technology Co., Ltd. is recognized as the leading information provider in China. We specialize in providing transparent, high-value, authoritative business intelligence and professional analysis in the commodities market. Our expertise covers the oil, gas, coal, chemicals, plastics, rubber, fertilizers and metals industry, etc.
JLC China Bunker Fuel Market Monthly Report is released by JLC Network Technology Co., Ltd monthly on China Bunker Market, Demand, Supply, Margin, Freight Index, Forecast , etc. The report provides a comprehensive and concise overview of the Chinese bunker oil market.
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Photo credit: JLC Network Technology Co Ltd
Posted: June 14, 2021