China’s bonded bunker fuel sales broadly steady in H1 - JLC

China’s bonded bunker fuel sales remained largely unchanged in the first half of the year compared to the same period in 2024, according to market intelligence firm JLC.

IMAGE: Yangshan harbour of Shanghai, China. Getty Images

China sold approximately 10.12 million mt of bonded bunker fuel in the first half of 2025, remaining nearly flat year on year, according to JLC.

The agency attributed the stable volume to the US-China tariff saga. China's shipping demand remained stable in the first quarter of this year, supported by steady economic growth. However, in April, the US and China announced new tariffs on each other’s goods, prompting traders to fast-track cargo deliveries ahead of the tariff implementation.

Shipping demand dropped later in April due to a backlog of export goods. It rebounded in May as cargo movement picked up again following a mutual reduction in tariffs, it added.

In terms of fuel types, HSFO accounted for 19% of total sales in H1 2025, up from 17% a year earlier, driven by increased scrubber installations as installation costs fell. Meanwhile, VLSFO's share dropped to 75% from 77% in H1 2024, and MGO remained unchanged at 6%.

Looking ahead, JLC sees both opportunities and challenges for China’s bonded bunker fuel market in the second half of the year. Economic growth and a more active trade environment are expected to boost fuel demand, especially in September and October. However, some shipowners may reduce sailing frequency or shorten routes due to ongoing trade tensions in some regions.

JLC forecasts total bonded bunker fuel sales in China to reach around 20 million mt in 2025.

By Tuhin Roy

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