Asia/Pacific News
Chinese VLSFO Exports Jump to Record High
China's VLSFO exports jumped to a record high last month as the country seeks to boost its bunker sales with tax cuts.
VLSFO exports from China reached 2.47 million mt in December, news agency Reuters reported Wednesday, citing data from the General Administration of Customs. That was almost double the 1.26 million mt exported in November, and the highest month on record.
The total for 2020 was 15.45 million mt.
China now has 16 firms licences to supply bonded bunker fuel along its coast, of which about 12 operate at Zhoushan, Reuters said.
Beijing applied a long-awaited rebate on value added tax on fuel oil from February 2020, incentivising domestic refiners to produce VLSFO in large quantities and help Chinese ports compete on price with their Asian competitors.
Zhoushan, China's largest bunkering port, has been the main beneficiary. Total bonded bunker sales there were 4.72 million mt last year, up by 15% from 2019's level.
