- Navy Liu
- China to see 22% or higher annual increase of bonded bunker consumption during 2010-2014
Liu has since 2002 been reporting for C1 Energy on the Chinese and Asian fuel oil, bunker fuels, bitumen, and petrocoke markets. He is currently team leader at C1 Energy, which also focuses on China's refineries, including teapots, oil tank farms and jetties, and the broader-based shipping markets. Its teams produce daily, weekly, monthly, annual, and one-off reports, along with project consultancy.
Founded in May 2000, C1 Energy, an ICIS service, is an independent petroleum market intelligence and trading benchmark provider established in China. C1 is an acknowledged source of intelligence on the Chinese oil/gas markets with both domestic and international market players. It reports China's crude oil, fuel oil, liquefied petroleum gas, gasoline, diesel, (jet) kerosene, naphtha, bunker fuel, bitumen, natural gas, base oil/lubricant, solvent oil, petroleum coke, paraffin and dimethyl ether markets.
China’s bonded bunker market is expected to be more promising than the internal-trade market during the next five years. Firmer economic, given supportive policies and fiercer market competition, China’s bonded bunker fuel consumption is predicted to grow at an average annual rate of around 22%. By 2014, I predict, the demand will jump up approximately 270% from the level in 2009 to about 18.5-million metric tonne (mt).
China has huge port turnover, but small bunker consumption at present. The aggregate bunker sales volume in the major international ports like Shanghai, Ningbo-Zhoushan, Qingdao and Shenzhen is approximately equal to the sales in Hong Kong port alone.
During 2005-2009, every 10,000mt of cargo turnover in foreign trade only needed 25.43 mt of bonded bunker fuel on average each year. The demand was at the highest in 2008 with 34.09mt. The figures are sharply lower than the 670-680 mt recorded in Singapore. That also indicates huge potential for further growth in bonded bunker consumption in the years ahead.
With the lift of geographic restrictions on operators by the central government, China’s bonded bunker market is expected to see continual expansion in market volume with more suppliers competing in the same ports. At present, the bonded bunker prices in many Chinese ports are too high to attract ship-owners due to monopoly.