China's Jan-Feb bonded bunker fuel supply hits record high of 3.2 million mt
23rd March 2021 09:06 GMT

China's supply to the bonded bunker fuel market surged 50% on the year to hit a record high of 3.2 million mt over January-February, data from market research firm Longzhong released March 22 showed.

Low sulfur bunker fuel accounted for 89% of the supply, while high sulfur and low sulfur marine gasoil comprised 7% and 4%, respectively.

As of February this year, China's refineries had a total low sulfur fuel oil production capacity of 19.85 million mt. The output of LSFO for bonded bunkering in China was about 1.65 million mt, a jump of 223% year on year, of which Sinopec contributed 63%, the data showed.

Chinese refineries have continually expanded fuel oil production ever since Beijing allowed a value added tax rebate on domestically-produced low sulfur fuel oil barrels which are supplied to the country's bonded zone from February last year.

Supply of bonded bunker fuel was dominated by CNPC and Sinopec, in which both state-owned giants accounted for 81% of the market share.

China is expanding its bunker business at domestic ports. The upcoming bunkering port of Zhoushan has an ambitious bunker sales target for 2021, with an aim to sell 6 million mt of bunker fuel this year, 27% higher from 2020, Zhoushan port's bonded zone administration committee said.

The port sold 4.72 million mt of bonded bunker fuel in 2020, up 15.1% from a year earlier, S&P Global Platts reported previously.

Bunkerworld .,
23rd March 2021 09:06 GMT