China’s fuel oil imports for the January and February period rose by a fifth from a year ago, data from the General Administration of Customs showed on Wednesday.
Imports for the first two months of the year were at 3.59 million metric tons, up 21% from the corresponding period in 2023.
China’s fuel oil imports firmed in line with a trend that emerged last year when independent refineries ramped up purchases of fuel oil for use as lower-cost feedstocks.
While imports for January rose month-on-month, February shipments fell quite sharply due to high inventory levels and amid a seasonal lull during the Lunar New Year holidays, which were in early February this year.
The import volumes included purchases under ordinary trade, which are subject to import duty and consumption tax, as well as imports into bonded storage.
Meanwhile, China’s exports of marine fuel for the January and February period rose 2.1% from a year ago to 2.85 million tons.
China’s exports of low sulphur marine fuel are measured mostly by sales from bonded storage for vessels plying international routes.
The rise in exports for the January-February period comes after China recorded full year very low sulphur fuel oil (VLSFO) shipments of 18.63 million metric tons in 2023, a 3.2% annual gain amid an overall rise in bunkering activity in Asia.
Tensions in the Red Sea since November had boosted demand for the fuel, with several ships diverting course and taking on more fuel when passing by key bunker hubs in Singapore and the United Arab Emirates.
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Marine bunker fuel sales at Singapore and Fujairah port both recorded annual gains since the start of this year.
The table below shows China’s fuel oil exports and imports in metric tons. The exports section largely captures China’s low sulphur oil bunkering sales along its coast.
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