- China’s bonded bunker fuel sales decreased in July to 1.74 million mt, down 5.08% from the previous month, due to Typhoon Gaemi’s impact on southern ports.
- Exports fell 8.37% in H1 2024, totaling 9.59 million mt, with heavy bunker fuel making up 94.29% of the exports.
- Total bonded bunker fuel sales increased by 8.46% year-on-year to 10.16 million mt in H1, driven by higher domestic supply.
The country tallied 1.74 million mt of bonded bunker fuel sales in July with daily sales at 56,248 mt, falling by 5.08% month on month after the bunkering operation was affected by Typhoon Gaemi, JLC’s data shows, reports Manifold Times.
China’s Bonded Bunker Fuel Market Overview
In July 2024, China experienced a decline in bonded bunker fuel sales, totaling 1.74 million mt. This decrease of 5.08% month-on-month was attributed to the disruptions caused by Typhoon Gaemi, which affected bunkering operations at southern ports. The daily sales rate fell to 56,248 mt, reflecting the impact of adverse weather conditions on maritime operations.
Bonded bunker fuel exports from China dropped by 8.37% in the first half of 2024, with a total of 9.59 million mt shipped. Heavy bunker fuel exports comprised 94.29% of the total, while light bunker fuel accounted for the remaining 5.71%. The decrease in exports was partly due to delays in customs clearance, though overall bonded bunker fuel sales increased by 8.46% year-on-year, reaching 10.16 million mt. This growth was supported by a rise in domestic supply despite a slower global economic recovery.
Domestic demand for bunker fuel showed varying trends in July. Heavy bunker fuel demand decreased by 2.63% to 370,000 mt, driven by a surplus of ships and reduced transaction volumes. In contrast, light bunker fuel demand rose by 7.14% to 150,000 mt, as the market became more active following the end of typhoon weather.
Bonded bunker fuel imports surged by 16.69% in June, reaching 361,500 mt. This increase was due to declining inventory levels in East China and lower freight rates. However, on a year-on-year basis, imports fell by 20.27%, reflecting a high base from the previous year. Malaysia remained the top supplier, with Iraq overtaking Singapore as the second-largest source.
The supply of bonded bunker fuel tightened in July, with a 5.00% decrease in heavy bunker fuel supply to 380,000 mt. The availability of low-sulfur residual oil was affected by refinery maintenance and production cuts in Northeast China. Similarly, the supply of marine gas oil (MGO) fell by 6.25% to 150,000 mt, due to reduced refinery interest in MGO production amid weakening diesel prices.
This overview highlights the complexities and fluctuations in China’s bonded bunker fuel market, reflecting the impact of natural disasters, changing domestic and international demand, and supply chain dynamics.
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Source: Manifold Times
