Heavy bunker fuel consumption at China's key ports was less than 300,000 tonnes in October, down nearly 12.0% from last month, on the flagging demand of end shipping market, OilChem's data showed.
China Heavy Bunker Fuel Prices and Consumption at Key Ports
Source: OilChem
2023 China Heavy Bunker Fuel Consumption at Key Ports (by region)
Source: OilChem
It can be seen from the above chart that heavy bunker fuel consumption at major ports of all regions reported a downtrend in October. Measured month over month, the port consumption in Northeast China and South China, in particular, slipped significantly by 25% and 20%, respectively, and that in other regions waned within a range of 5%-9%.
Changes in port consumption of different regions was mainly attributed to regional heavy bunker fuel prices. In spite of the general drawdown of heavy bunker fuel consumption in China, the major ports in North China and Shandong have avoided a sharp decline in consumption by virtue of their price advantages, thanks to its ample oil resources.
However, dragged by feedstock supply tightness and stubbornly high costs, the key ports in Northeast China unfortunately lost some shipowners, who switched to refuel at North China and Shandong ports. Major ports of South China still ranked the last in consumption, as shipowners have become accustomed to refuel at ports in East China and North China where heavy bunker fuel prices are lower.
OilChem predicts the heavy bunker fuel consumption would likely slide continuously in November, owing to the ongoing shipping market weakness and sluggish demand.
Written by Catherine Sun, sss@oilchem.net
Edited by Aggie Hu, huchenying@mysteel.com