China’s bonded bunker fuel imports grow in March - JLC

China's bonded bunker fuel imports continued to grow in March, according to market intelligence provider JLC.

IMAGE: The Chinese flag along with an oil refinery in the background. Getty Images

China imported a total of 665,800 mt of bonded bunker fuel last month, marking a significant surge of 73.7% from the same period last year, JLC reported citing data from China's General Administration of Customs (GACC).

The increase was driven by tight VLSFO supply in the domestic market and lower international bunker fuel prices, JLC said.

Domestic Chinese refiners continued to cut their VLSFO production amid more unit maintenance and lower production margins, “forcing distributors [bunker fuel suppliers] to raise their imports to meet demand,” JLC said.

Bunker fuel prices declined in tandem with falling global crude benchmarks, prompting domestic traders to ramp up imports, the agency noted.

The UAE and Singapore emerged as China's top bonded bunker fuel suppliers in March, each shipping around 200,000 mt, followed by Malaysia with 168,000 mt.

By Aparupa Mazumder

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