China's No.5-No.7 fuel oil imports and exports showed a similar trend over January-February, which rose in January and then pulled back in the following month subjected to the changes in supply and demand, according to OilChem.
Based on data from the General Administration of Customs of the People's Republic of China (GACC), the No.5-No.7 fuel oil import volume stood at 2.15 million tonnes in January, up 112,100 tonnes, or 5.50% month-on-month, as China's refineries showed strong demand for imported low-sulfur fuel oil (LSFO) faced with supply shortfall domestically.
2023-2024 China No.5-No.7 Fuel Oil Imports
Source: GACC and OilChem
However, the volume waned by 709,800 tonnes or 32.99% MoM to 1.44 million tonnes in February, according to GACC. As the supply of LSFO from domestic refineries returned to normal, the refineries significantly reduced the demand for imported LSFO, together with the low operating rates and poor profits challenging the refineries.
2022-2024 China LSFO Monthly Production
Source: OilChem
2023-2024 China No.5-No.7 Fuel Oil Exports
Source: GACC and OilChem
Regarding the export market, a rally in international shipping market demand boosted China's bonded bunker fuel consumption by 15% in January, propping up China's No.5-No.7 fuel oil exports. GACC's data showed that No.5-No.7 fuel oil export volume stood at 1.67 million tonnes in January, up 166,300 tonnes, or 11.03% from a month ago.
However, compared with January, the export volume was down 500,600 tonnes or 29.90% to 1.17 million tonnes in February, affected by the Chinese Spring Festival holiday, when China's bonded bunker fuel consumption dropped as much as 24% month-on-month to less than 1.40 million tonnes, according to OilChem.
China Bonded Bunker Fuel Consumption
Source: OilChem
OilChem predicts that No.5-No.7 fuel oil imports might gain 24.83% month-on-month to 1.80 million tonnes in March, on robust demand, although some February imported resources have been not consumed, which will restrain the growth of fuel oil imports. The No.5- No.7 fuel oil exports are estimated at about 1.60 million tonnes in March, up 36.35% from last month, given the improved international shipping market demand.
Written by Catherine Sun, sss@oilchem.net
Edited by Aggie Hu, huchenying@mysteel.com