China sold 8.295 million metric tonnes (mt) of bonded bunker fuel from January to May 2022, down 1.5% year-on-year, according to China-based consultancy LongZhong on Friday (24 June), reports Manifold Times.
Decrease in bunker fuel sales
In comparison, the world’s largest marine bunkering hub Singapore’s bonded fuel supply totalled 19.163 mt, a year-on-year decrease of 9.4%, during the same period.
In the second quarter of the year, low sulphur fuel oil availability continued to be tight while price rose, which made it difficult to significantly boost bonded bunker fuel sales.
From the perspective of supply companies, the bunkering volume of Sinopec Zhoushan and Chimbusco accounted for 92% of the total bunkering volume, occupying a major market share.
In terms of oil supply varieties, from January to May 2022, low-sulphur fuel oil in China’s bonded ships accounted for 88%, and the proportion of high-sulphur fuel oil was 6%. During the same period last year, its proportion was 88.8% and 6.5% respectively.
The proportion of low-sulphur fuel oil in Singapore’s total oil supply to ships is 64.5%, and high-sulphur fuel oil accounts for 26.9%. During the same period last year, the proportion was 66.8% and 24.6% respectively.
The fuel supply of bonded ships in Zhoushan, Zhejiang Province reached 2.36 million mt, an increase of 18% year-on-year. It accounted for 28.5% of the national oil supply of bonded vessels, making it the largest domestic bonded ship fuel supply port in China. The market share of local licensed enterprises in Zhoushan accounted for 10.6% of the national market share and 37% of the local bonded direct supply in Zhoushan.
In addition, the oil supply of bonded vessels in Qingdao Port increased rapidly from January to May, with a year-on-year increase of more than 40%. At present, domestic resources have become an important factor in whether suppliers can achieve breakthroughs in supply of bonded vessels. In addition, under high oil prices, there is great resource pressure, which is also a factor restricting business development.
From January to May 2022, bonded fuel oil imports shrank significantly. The total volume of fuel oil imports was 4.4036 million mt, down 4.55% year-on-year. Bonded fuel oil imports account for 31% of the oil consumption of bonded ships.
From January to May, about 84% of China’s bonded low-sulphur ship fuel oil consumption was from domestic refinery resources, an increase of 22.5% year-on-year.
n June, it was still difficult for the oil supply of local bonded bunker suppliers to rise significantly due to high prices. It is expected that the oil supply of China’s bonded ships may reach about 10 million mt in the first half of the year, a year-on-year decline of about 2%.
In the second half of the year, domestic low-sulphur fuel oil production and market price fluctuations may be the main factors in whether the oil supply of bonded bunkering ships can achieve a substantial breakthrough for 2022.
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Source: Manifold Times