- Prompt VLSFO supply in Zhoushan remains tight, with some suppliers running low on stocks.
- Bonded bunker fuel imports could rise moderately as VLSFO production decreases, helping to limit the overall supply decline.
China’s bonded bunker sales decreased in August due to tight supply of VLSFO and some disruption to bunkering operations at Zhoushan Port caused by ship congestion, reports Engine quoting JLC.
Drop in bonded bunker fuel sales
Daily sales of bonded bunker fell by 1.65% month-on-month to approximately 55,000 mt.
Chinese refiners produced about 1.16 million mt of VLSFO in August, down from around 1.32 million mt in July.
Prompt VLSFO supply in Zhoushan remains tight, with some suppliers running low on stocks. Lead times of 5-7 days are recommended for the grade.
JLC estimates that China’s VLSFO output will decrease to 0.95-1.05 million mt in September, down from 1.16 million mt in August. This drop is expected as PetroChina may reduce production due to tighter export quotas, and CNOOC might cut output due to maintenance at Zhoushan Petrochemical.
However, China’s bonded bunker fuel imports could rise moderately as VLSFO production decreases, helping to limit the overall supply decline.
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Source: Engine
