China’s exports of very-low-sulphur marine fuel fell 21.34% in August from July, amid subdued international activity in the country’s ports, official data showed on Tuesday.
Exports of the fuel were 85.24% below the year-ago level.
China exported 1.94 million tonnes of very-low-sulphur fuel oil (VLSFO) in August, measured mostly by sales from bonded storage for vessels plying international routes, data from the General Administration of Customs showed.
That compared with 1.60 million tonnes in July and 1.59 million tonnes a year before. Year-to-date exports were 12.62 million tonnes, down 3.74% from a year before.
Data on general merchandise exports and imports and on container traffic show international shipping activity in Chinese ports, and therefore opportunities to supply VLSFO to foreign ships, was weak in August.
Merchandise exports in August were up 7.1% from a year earlier, but that compared with an 18% annual gain in July.
China’s trade likely lost steam in Aug as demand shrinks
Surging inflation abroad crimped demand for Chinese products, and fresh COVID curbs and heatwaves disrupted production and distribution in China.
Slowing growth in merchandise imports last month, up only 0.3% from the year before, from 2.3% in July, also capped marine fuel exports.
Container throughput for international trade at eight major Chinese ports in August rose by 0.1% from a year earlier, compared with a 14.5% annual climb in July and 4.9% increase in August 2021, according to data from China’s port association.
Fuel oil imports into bonded storage, including both high-sulphur and low-sulphur products, were down 64.18% from a year earlier at 0.67 million tonnes.
The table below shows China’s fuel oil imports and exports, all in metric tonnes.
The column of exports under bonded storage trade largely captures China’s low-sulphur oil bunkering sales along its coast.
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