Beijing-based commodity market information provider JLC Network Technology Co. recently shared its JLC China Bunker monthly report for February with Manifold Times through an exclusive arrangement:

JLC China Bunker Market Monthly Report (February 2021)

Highlights

Bunker Fuel Demand

Bonded bunker fuel sales dip in February

In February, China’s bonded bunker fuel sales edged down to 1.33 million mt, JLC data showed. Sales in February slipped due to the Chinese New Year holiday and harsh weather at certain ports in North China. But the fall was limited as some term contracts switched from January to February and sales were high at some ports in the southern region. Chimbusco and Sinopec sold about 579,600 mt and 512,500 mt of bonded bunker fuel, respectively. Bonded bunker fuel sales were about 70,200 mt for SinoBunker and 23,800 mt for China ChangJiang Bunker (Sinopec). New enterprises in the China (Zhejiang) Pilot Free Trade Zone sold 144,600 mt.

China’s bonded bunker fuel sales jumped to 2.61 million mt in December, up by 94.36% month on month, according to GAC data. In December, bonded bunker fuel suppliers ramped up sales to meet annual sales targets. Besides, a large quantity of bonded bunker fuel oil produced by Sinopec refineries was loaded into bonded warehouses in the month. Specifically, bonded bunker fuel sales were 1.25 million mt for Sinopec, 1.02 million mt for Chimbusco, 85,000 mt for SinoBunker, 50,300 mt for China ChangJiang Bunker (Sinopec) and 205,000 mt for new enterprises in the China (Zhejiang) Pilot Free Trade Zone. China’s bonded bunker fuel sales in 2020 surged by 4.76 million mt or 39.79% year on year to 16.72 million mt, GAC data shows.

Note: There is no update on import and export data for January, as the General Administration of Customs of the PRC is expected to combine January and February data instead of providing data for a single month. The combined data for January-February are expected to be released at the end of March, and we will update the data in the March version report.

Domestic bunker fuel demand drops in February

Domestic bunker fuel demand declined in February. End users’ consumption of domestic-trade heavy bunker fuel was about 340,000 mt in the month, down by 30,000 mt from the previous month. The demand for light bunker fuel was 120,000 mt in February, down by 10,000 mt from January. Demand dropped in February mainly due to the Chinese New Year holiday and fewer weekdays in the month. Earlier in the month, traders held caution and trades with high value were few. But later in the month, trades improved as some downstream users began stock replenishments amid low inventories and rising prices.

Bunker Fuel Supply

Bonded bunker fuel imports drop 2.85% in December

China’s bonded bunker fuel imports were 1.10 million mt in December, a drop of 2.85% month on month and a fall of 46% year on year, GAC data showed. Demand was still high in December. As domestic production fell behind demand, despite a rally in production, bonded bunker fuel distributors still had to import bunker fuel to meet demand.

Specifically, the largest import source for China was still Malaysia with 641,000 mt of bunker fuel. Imports from Singapore, South Korea and the UAE were 172,000 mt, 99,000 mt and 84,000 mt respectively. The imports were 68,000 mt and 34,000 mt respectively from Russia and Thailand.

China’s bonded bunker fuel imports were 12.24 million mt in 2020, a drop of 14.2% year on year, GAC data showed.

Note: There is no update on import and export data for January, as the General Administration of Customs of the PRC is expected to combine January and February data instead of providing data for a single month. The combined data for January-February are expected to be released at the end of March, and we will update the data in the March version report.

Domestic blended bunker fuel supply reduces in February

Chinese blending producers supplied a total of around 350,000 mt of heavy bunker fuel in February, down by 30,000 mt from January, JLC data showed. In February, supply fell as many blenders halted operation during the Chinese New Year holiday. Low-sulfur residue oil supply remained tight after the holiday. Besides, as some refineries started overhauls, supply reduced and low-sulfur residue oil was mainly for captive use. Supply of light coal tar and coal-based diesel also tightened when producers kept their inventories low. Blenders lowered their supply amid tight availability of blendstocks and high blendstock costs. Light bunker fuel supply was about 130,000 mt, down by 10,000 mt from the previous month amid impacts of the holiday.

JLC Network Technology Co., Ltd is recognised as the leading information provider in China. We specialised in providing the transparent, high-value, authoritative market intelligence and professional analysis in commodity markets. Our expertise covers oil, gas, coal, chemical, plastic, rubber, fertiliser and metal industry, etc. 

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.

All rights reserved. No portion of this publication may be photocopied, reproduced, retransmitted, put into a computer system or otherwise redistributed without prior authorisation from JLC.

Related: JLC China Bunker Market Monthly Report (January 2021)
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Photo credit: JLC Network Technology Co Ltd
Published: 18 May, 2021