China’s bonded bunker fuel sales grew in H1 - JLC

China’s bonded bunker fuel sales grew around 9% in the first half of the year compared to the same period last year, market intelligence provider JLC reported.

PHOTO: Aerial view of container terminal in port of Tianjin, China. Getty Images

China sold about 10.16 million mt of bonded bunker fuel in the first six months of 2024, driven by “fair demand and larger domestic production.”

"Global shipping demand was relatively fair in H1, and some ships were redirected amid the Red Sea conflict, pushing up China’s bonded bunker fuel sales," JLC stated.

Additionally, domestic refiners raised their VLSFO production, further supporting bunker sales.

In H1 2024, VLSFO made up 77% of China's total bonded bunker fuel sales, while HSFO and MGO accounted for 17% and 6%, respectively.

National bunker suppliers accounted for 72% of total sales, with regional suppliers accounting for the remaining 28%. Among regional suppliers, PetroChina Fuel Oil represented about 17% of the country's total sales in H1.

There are currently 36 licensed bonded bunker suppliers in China, of which five are national license holders and 31 are regional license holders.

Availability of all grades remains good in Zhoushan, with several suppliers recommending lead times of 5-7 days.

In Northern China, VLSFO and LSMGO grades are readily available in Dalian, Qingdao, and Tianjin. However, HSFO supply is limited in Qingdao and Tianjin. Shanghai also has a good supply of VLSFO and LSMGO, but HSFO availability is scarce. In Fuzhou and Xiamen, VLSFO and LSMGO grades are easily accessible, while prompt availability is restricted in Guangzhou and Yangpu.

By Tuhin Roy

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