- China sees a rise of 18% in its marine fuel exports
- November IMO compliant fuel exports were at 1.75mt
- Three state-backed refiners granted 1 million tonnes of clean marine fuel export quotas last month
- China’s marine fuel supply to grow steadily in the remaining period of 2021
- Total supply for the year to be a record high of 20 million tonnes.
China’s VLSFO exports rose 17.8% in November from a month ago, reports Reuters, says an article published in Reuters.
Compliance to IMO emissions rule
China’s exports of clean marine bunker, or very low-sulphur fuel oil (VLSFO), rose 17.8% in November from a month ago, as refiners acquired a new batch of export allowances.
November exports of the shipping fuel, which has a maximum sulphur content of 0.5% to comply with emission rules set by the International Maritime Organisation (IMO), were at 1.75 million tonnes, compared with 1.49 million tonnes in the prior month, General Administration of Customs data showed on Monday.
Refiners export quota
China granted three state-backed refiners a total of 1 million tonnes of clean marine fuel export quotas last month, driving the total allowances for the bunker fuel to 12 million tonnes for 2021, up from 10 million tonnes last year.
China’s marine fuel supply
Analysts from China-based Longzhong consultancy expect China’s marine fuel supply to grow steadily in the remaining period of 2021 and to push total supply for the year to a record high of 20 million tonnes.
The price spread between clean marine fuel supplied in China’s Zhoushan and in Singapore narrowed to $7.31 per tonne in end-November from $39.29 at the beginning of the month.
China’s fuel oil imports
Customs data on Monday also showed that fuel oil imports reached 1.66 million tonnes in November, with imports into bonded storage that include both high-sulphur and low-sulphur supplies, at 1.22 million tonnes.
The table below shows China’s fuel oil imports and exports, all in metric tonnes.
The column of exports under bonded storage trade largely captures China’s VLSFO bunkering sales along its coast.
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Source: Reuters
