China’s bonded bunker fuel imports tumbled in August – JLC

China’s bonded bunker fuel imports slumped in August due to uncompetitive VLSFO prices and relatively high domestic HSFO inventory, market intelligence provider JLC reported.

PHOTO: The Chinese flag blending into an oil pumpjack. Getty Images

China’s bonded bunker fuel imports stood at about 352,900 mt in August, down by 23% from 458,900 mt imported in July, JLC reported citing data from China’s General Administration of Customs (GACC).

A decline in domestic VLSFO production due to tighter export quotas, coupled with the total absence of bonded VLSFO imports in August impacted the country’s total bonded bunker fuel imports during the month, JLC said.

Chinese buyers did not import any VLSFO last month “as the economic efficiency of imported LSFO [VLSFO] stayed relatively low,” JLC reported.

MGO imports were “largely stable,” in August, JLC said.

Malaysia (49.6%) remained China's biggest bonded bunker fuel supplier in August by shipping 175,000 mt of bonded bunker fuel, followed by South Korea (26.8%) and Iraq (23.6%), which supplied 94,400 mt and 83,400 mt, respectively.

However, on a year-on-year basis, Chinese bonded bunker fuel imports surged by 15.14% in August, according to JLC. The country’s bonded bunker fuel imports are expected to rise in the remainder of 2024, as domestic VLSFO supply will further tighten amid lower export quotas, JLC reported.

China’s total bonded bunker fuel imports in the first eight months of this year were about 2.79 million mt, an increase of 11.86% from the same period last year.

By Aparupa Mazumder

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