China's bonded bunker fuel imports dropped in August – JLC

China’s bonded bunker fuel imports dropped in August to about 306,500 mt, down 8% from July, market intelligence provider JLC has estimated.

PHOTO: Oil pumpjacks next to the Chinese flag. Getty Images

China’s bonded bunker fuel imports fell in August, after import costs surged and the country ramped up its domestic fuel oil production, JLC reported citing data from China’s General Administration of Customs (GACC). 

"Domestic importers showed lower buying interest, as high-sulfur bunker fuel prices in Asia soared amid surging international crude and imported low-sulfur bunker fuel prices still lacked price advantages," according to JLC. Additionally, freight rates for imported cargoes “stayed firm, adding to the downward pressure on the imports,” it added.

South Korea became the biggest bonded bunker fuel supplier to China in August, accounting for about 36% of the country's total imports, followed by Oman (33%). Meanwhile, "Russia slipped to the third place with 91,300 mt, making up 29.8%," JLC stated. Russia was China's biggest bonded bunker fuel supplier in July, with supplies of 275,000 mt during the month.

Moreover, Chinese refiners increased their daily refining run rate in August, JLC reported citing data from the National Bureau of Statistics (NBS). Their fuel oil output averaged 146,839 mt/day in August, an increase of 3% from the previous month.

“The drop in the imports was also because of larger domestic production,” JLC said.

“China’s bonded bunker fuel imports totaled about 2.49 million mt in January-August, diving by 20.58% from the same months in 2022,” JLC further estimated.

By Aparupa Mazumder 

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