China’s bunker fuel market experienced a decline in both sales and production in July 2025, influenced by a combination of weak demand, seasonal factors, and refinery maintenance.
Bonded Bunker Fuel Sales & Demand
Bonded bunker fuel sales in China dropped to 1.70 million metric tons (mt) in July, a 5.34% decrease from June. Daily sales were 54,816 mt. This downturn was driven by several factors, including:
- Geopolitical tensions and trade wars: These issues continue to depress global shipping demand.
- Seasonal ship maintenance: Many shipowners conducted semi-annual maintenance in July, reducing the number of active vessels needing fuel.
- Weather disruptions: Typhoons and heavy rains affected port operations in East and South China, leading to service suspensions.
Major suppliers like Sinopec (Zhoushan) and Chimbusco contributed significantly to the total sales, with 550,000 mt and 500,000 mt, respectively.
Domestic Market
The domestic market also saw reduced demand. Heavy bunker fuel demand shrank by 2.94% to 330,000 mt, as port services were suspended due to severe weather. In contrast, domestic-trade light bunker fuel demand remained stable at 140,000 mt. Diesel demand was also seasonally weak due to the fishing moratorium and frequent rains.
LSFO Production and Supply
China’s Low-Sulfur Fuel Oil (LSFO) output declined in July by 3.42% month-on-month and 22.61% year-on-year, settling at 1.02 million mt. This decrease was primarily due to unit maintenance at some refineries, such as Sinopec’s Shengli Oilfield and Jinling Petrochemical, and persistently poor production margins.
However, some refineries boosted their output, with Qingdao Petrochemical reaching a record monthly high of 160,000 mt. Notably, Huabei (North China) Petrochemical launched a new ultra-low-sulfur fuel oil (ULSFO) bunkering service in July.
In terms of imports, bonded bunker fuel imports retreated in June, down 10.68% month-on-month to 545,300 mt. This was largely due to an increase in domestic LSFO supply. The top suppliers of bonded bunker fuel to China in June were Malaysia, Singapore, and South Korea. Despite the monthly drop, bonded bunker fuel imports in the first half of the year showed a significant increase of 62.04% year-on-year.
Did you subscribe to our daily Newsletter?
It’s Free Click here to Subscribe!
Source: Manifold Times
