SINGAPORE: China’s fuel oil exports surged to a three-month high in March, driven largely by increased low-sulphur marine fuel sales, while imports declined amid softer refinery demand and shifting market dynamics, according to official data.
Exports rose sharply by 57% month-on-month to 1.93 million metric tons (around 395,000 barrels per day), marking a 10% increase compared to the same period last year. The growth was supported by competitive pricing, as bunker fuel rates at Chinese ports fell below those in Singapore toward the end of the month, attracting additional demand.
In contrast, China’s fuel oil imports dropped 9% from February levels to 2.43 million tons. Market participants attributed the decline to reduced refinery throughput, as the ongoing US-Iran conflict impacted processing rates and dampened demand for fuel oil feedstock.
Stronger fuel oil prices relative to crude also weighed on import appetite. Margins for high-sulphur fuel oil shifted from discounts to premiums following the escalation in geopolitical tensions, further discouraging purchases.
Exports continued to be dominated by low-sulphur fuel oil used for marine bunkering along China’s coast, while imports comprised both duty-paid shipments under ordinary trade and volumes stored in bonded facilities.
The data highlights the evolving dynamics of regional fuel markets, influenced by pricing shifts, refinery activity, and broader geopolitical developments.
By Reuters
