Zhoushan's bunker sales surged by 17% in 2023 – JLC

Bunker suppliers in Zhoushan sold about 7.05 million mt of bunkers in 2023, an increase of 17% on the year, market intelligence provider JLC says.

PHOTO: Aerial view of Zhoushan City, Zhejiang Province. Getty Images

Zhoushan has now become the fourth largest bunkering hub by volume, after Singapore, Rotterdam and Fujairah, JLC reported, citing data from the Zhoushan Maritime Safety Administration.

Currently, 20 licensed bunker suppliers operate in Zhoushan, three of which joined in 2023.

Zhoushan’s VLSFO was often priced at either a slight premium over Singapore’s VLSFO through 2023, or at discounts or parity. This increased the attractiveness of bunkering in the Chinese port.

However, Zhoushan’s VLSFO price shot up to a $65/mt premium over Singapore’s on 26 December, and has since been above $30/mt.

VLSFO supply has been very tight in Zhoushan in recent weeks. The supply tightness has largely been due to lower domestic VLSFO production and delays in the arrival of resupply cargoes.

Some sources argue that Zhoushan’s VLSFO premium over Singapore could narrow further over the coming weeks as refineries ramp up production to meet their allocated production quotas from the government.

By Nithin Chandran

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