Beijing-based commodity market information provider JLC Network Technology Co. on Thursday (11 June) shared its JLC China Bunker monthly report for May with Manifold Times through an exclusive arrangement:
JLC China Bunker Market Monthly Report (May, 2020)
Highlights
Demand and Supply
Bunker Oil Demand
Bonded bunker fuel sales stay high in May on improving demand
In May, China’s bonded bunker fuel sales were about 1.45 million mt, JLC data showed. The bonded bunker fuel demand was buoyed by recovering shipping demand and advantageous prices. Countries took actions to shore up economy upon easing COVID-19 in May. More ships were incentivized to refuel at Chinese ports amid low prices of low-sulfur bunker fuel supplied by domestic refiners. In addition, bunker fuel markets in Singapore were hit by the bankruptcy of Hin Leong Trading and some traders shifted focus to Chinese ports for bunker fuel oil consumption. As a result, sales of bonded bunker fuel in May stayed high. Chimbusco and Sinopec sold about 525,000 mt and 678,000 mt of bonded bunker fuel, respectively. New enterprises in the China (Zhejiang) Pilot Free Trade Zone sold 136,000 mt. Bonded bunker fuel sales were about 79,000 mt for China ChangJiang Bunker (Sinopec) and 42,000 mt for SinoBunker.
China’s bonded bunker fuel sales surged to 1.56 million mt in April, up by 41.26%% month on month and up by 56.11% year on year, according to GAC data. Major Chinese ports saw low-sulfur bunker fuel prices equivalent to or lower than those in Singapore amid domestic mass production and short distance of supply. With more shares in the market, China’s bonded bunker fuel sales went up in April. PetroChina ramped up exports of low-sulfur bunker fuel oil by direct supply from its refineries, and thus topped Chimbusco in bonded bunker fuel sales, ranking the first. Specifically, bonded bunker fuel sales were 544,600 mt for Chimbusco, 70,400 mt for Sinopec, 75,500 mt for China ChangJiang Bunker (Sinopec), 40,500 mt for SinoBunker and 130,000 mt for new enterprises in the China (Zhejiang) Pilot Free Trade Zone.
Domestic bunker fuel demand grows in May
Domestic bunker fuel demand rose in May. With temperature rising and coronavirus-related protection loosened, bulk demand continued to rally, among which demand for coal, metal ore and grain recovered markedly. Freight capacity was tight in some routes. End-users who shut down their operation before began to purchase bunker fuel. Driven by improving coastal transport demand, bunker fuel demand went up. The demand for domestic-trade heavy bunker fuel was about 300,000 mt in the month, up by 40,000 mt or 15.38% from the previous month. The demand for light bunker fuel was 105,000 mt in May, up by 20,000 mt from April on rising demand amid stable trades when fishers made purchases mainly based on needs.
Bunker Oil Supply
Bonded bunker fuel imports rise 37.76% in April
China’s bonded bunker fuel imports were 1,029,400 mt in April, a rise of 37.76% month on month and a drop of 22.43% year on year, GAC data showed….
Read More: Manifold Times | JLC China Bunker Oil Market Monthly Report (May, 2020)
