China has rapidly increased its VLSFO production capacity this year. File Image / Pixabay
Exports of very low sulfur fuel oil (VLSFO) from China recovered somewhat in June after a sharp decline in May, according to news agency Reuters.
The country's VLSFO exports jumped by 10.6% from a month earlier to 1.26 million mt in June, Reuters reported Monday, citing data from the General Administration of Customs.
In May China's VLSFO exports slumped by 20% from the previous month, in what was taken as a sign of a renewed impact of COVID-19 on shipping in Asia.
China's total VLSFO production capacity has now reached 13.1 million mt, Reuters cited analysts as saying.
A long-awaited tax rebate applied to fuel oil exports from China this year has encouraged a rapid climb in its production of low-sulfur marine fuels, which may allow its ports to take away some bunker market share from other ports in the region.