South China Fuel Oil Imports Expected to Rise Over 29% in April

by Ship & Bunker News Team
Wednesday May 1, 2013

South China fuel oil imports are expected to rise by 40,000 tonnes, or 29.6 percent, month-on-month to 175,000 tonnes in April, according to ICIS C1 data.

The rise represents a gain of 9.4 percent year-on-year, and all of the imports were said to be mixed/cracked fuel oil from Singapore.

Market sources attributed the rise to stock replenishment by bonded bunker traders, with Sinopec Fuel Oil Sales in early April importing 25,000 tonnes and 30,000 tonnes of such fuel oil for its subsidiaries in Guangdong and Fujian respectively.

Brightoil and China Marine Bunker (PetroChina) were said to have maintained their "normal imports" for the month.

Shenzhen port is estimated to have received a little over half of the 175,000 tonne total, getting 90,000 tonnes, with 40,000 tonnes ending up in Huangpu port, and up to 10,000 tonnes for ports in Zhuhai.

Fujian, Hainan, and Guangxi together are expected to have taken the remaining 35,000 tonnes.

Deutsch Bank AG earlier this year predicted that China's use of fuel oil may decline in 2013 after a 4.4 percent rise last year as new government policies make it less attractive as a feedstock for refineries.