SunSirs: China Domestic Ship Fuel Market Fluctuated and Declined in July

https://www.chemnet.com   Aug 01,2024 SunSirs

According to the commodity analysis system of SunSirs, the domestic ship fuel market fluctuated and declined in July. As of July 31, the average price of 180CST fuel oil in China was 5,496.00 RMB/ton, a decrease of 1.33% from 5,570.00 RMB/ton on July 1.

In July, the domestic fuel oil price of 180CST fluctuated downward, and the overall price of blended raw materials in China was weak, leading to a strong wait-and-see sentiment in the ship fuel market; The supply market and shipping terminal market for coastal bulk cargo prices continue to be low, with weak shipping demand. In the latter half of the year, due to the impact of typhoon weather, the demand for oil replenishment by ship owners is limited, and inquiries from ship owners are scarce. Terminal demand for replenishment is urgent, resulting in limited transactions. According to SunSirs, as of July 31st, the self pickup low sulfur quotation for 180CST fuel oil in Dalian area of China National Fuel Oil Corporation is 5,650 RMB/ton, and the self pickup low sulfur quotation for 120CST fuel oil is 5,750 RMB/ton; The self extracted low sulfur quotation for 180CST fuel oil in the Shanghai area of China National Fuel Oil Corporation is 5,400 RMB/ton, and the self extracted low sulfur quotation for 120CST fuel oil is 5,500 RMB/ton.

The crude oil market experienced a significant decline in July. On the one hand, the geopolitical situation has eased, which is bearish for the crude oil market. In addition, the strengthening of the US dollar has affected economic activity in the United States due to hurricanes, putting pressure on crude oil demand and causing a slowdown in US crude oil exports. On the other hand, there are also signs of slowing economic growth in the Eurozone and China, especially the decline in China's crude oil imports, which has had a negative impact on the crude oil market.

In terms of international fuel oil, it is reported that the Singapore Enterprise Development Board (ESG) stated that as of the week ending July 24th, Singapore's fuel oil inventories decreased by 277,000 barrels to a two-week low of 19.855 million barrels, which is the lowest level in the past two weeks.

Recently, the international crude oil market has fallen, the domestic mixed raw material market is weak, the low sulfur asphalt market is declining, and there is a strong wait-and-see sentiment in the ship fuel market; The supply market for ships has limited demand for oil replenishment from terminal ship owners, with few inquiries from ship owners and a focus on urgent replenishment, resulting in limited transactions. It is expected that the fuel oil 180CST market will mainly consolidate in the near future.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.

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