Chinese exports of fuel oil slump despite production rise

London, (Quantum Commodity Intelligence) – Exports of 0.5% sulfur marine fuels from China fell 18.1% in May compared with a month earlier to the second-lowest monthly total so far this year, China customs data showed Monday.

International sales of the bunker fuel fell to 1.55 million mt, down from 1.9 million mt a month earlier.

Average monthly sales stood at 1.65 million mt so far this year.

The fall comes as new restrictions on shipping came into force in China to halt the spread of the so-called Delta Covid-19 variant that was first identified in India.

Production of fuel oil also rose 12.5% to 3.24 million mt last month, separate figures from China's National Bureau of Statistics showed Monday.

China is actively promoting itself as an alternative bunkering hub to Singapore with the southern Chinese port of Zhousan competing for international business.

The Shanghai Futures Exchange via the Shanghai International Energy Exchange offers trading in 0.5% marine fuel for physical loading and delivery at the port of Zhousan.

It reported its first physical transaction using its settlement price earlier this year.