- China’s bonded bunker fuel sales showed a significant increase in April, growing by 7.8% month-on-month, driven by improved shipping demand.
- LSFO output continued to decline due to refinery maintenance and poor production margins, while HSFO sales increased due to price spreads.
- Domestic-trade bunker fuel demand and supply saw strong growth in April, with heavier bunker fuel demand increasing by 5.56%, and domestic supply rising due to increased shale oil availability.
China’s bonded bunker fuel sales experienced substantial growth in April 2025, rising by 7.8% from March, with total sales reaching approximately 1.76 million mt. This growth, driven by improved shipping demand, reflects a daily sales figure of 58,757 mt. Notable sales came from major suppliers: Chimbusco (450,000 mt), Sinopec (Zhoushan) (580,000 mt), SinoBunker (45,000 mt), and China Changjiang Bunker (25,000 mt), with regional suppliers accounting for 662,700 mt in total. Demand for High Sulfur Fuel Oil (HSFO) notably increased as the price spread between Low Sulfur Fuel Oil (LSFO) and HSFO widened, encouraging a shift towards HSFO.
China’s LSFO Output Decline
China’s LSFO production further declined in April due to refinery maintenance and continued weak production margins. In total, China produced 1.04 million mt of LSFO, marking a decrease of 4.2% from March and a significant drop of nearly 16% year-on-year. Key refiners like Sinopec saw a reduction in output due to ongoing maintenance at facilities such as Tianjin Petrochemical and Hunan Petrochemical, while PetroChina also recorded a slight output reduction. On the other hand, CNOOC experienced a modest increase in LSFO output, helped by a production boost at Zhoushan Petrochemical.
Domestic-Trade Heavy Bunker Fuel Demand
Demand for domestic-trade heavy bunker fuel surged in April, growing by 5.56% month-on-month to 380,000 mt, driven by increased buying interest and higher restocking ahead of the Labor Day holiday. This demand boost was also supported by stable domestic-trade light bunker fuel demand, which held steady at 150,000 mt. Diesel market fundamentals remained unchanged, indicating stability in the light fuel segment.
Bunker Fuel Supply Trends
China’s bonded bunker fuel imports continued to grow in March 2025, increasing by 9.13% from February and 73.7% year-on-year, as domestic production failed to meet rising demand. The total imports reached 665,800 mt, with the UAE emerging as China’s largest bunker fuel supplier, contributing 200,200 mt, accounting for 30.06% of total imports. Singapore followed closely, supplying 200,000 mt, while Malaysia contributed 168,000 mt. This rise in imports was driven by declining international bunker fuel prices and domestic refiners’ reduced LSFO production.
Domestic-Trade Bunker Fuel Supply
The supply of domestic-trade bunker fuel increased significantly in April 2025. The total supply of domestic-trade heavy bunker fuel reached 380,000 mt, up by 8.57% from March, as blenders had increased availability of shale oil and low-sulfur residual oil. Despite a halt in the local blending business in East China, heavy bunker fuel supply surged in North China and Shandong. Additionally, the supply of domestic-trade light bunker fuel rose by 13.33% to 170,000 mt, driven by stronger blending interest and downstream restocking demands.
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Source: Manifold Times
