According to the commodity analysis system of SunSirs, the overall domestic marine fuel market trend in East China in June was upward. As of June 30, the average price of domestic fuel oil 180CST was 5462.50 RMB/ton, up 2.34% from 5337.50 RMB/ton on June 1.

In June, the overall price of domestic fuel oil 180CST rose. In early June, the decline in domestic blending raw material prices had limited support for the cost of the domestic marine fuel market. In addition, the weak shipping market caused a slight decline in the domestic marine fuel market. In mid-June, affected by the rise in international crude oil prices, the rise in domestic blending raw material prices provided cost support for the domestic marine fuel market. The coastal bulk freight rates in the downstream shipping market were stable, with limited support from terminal demand, and shipowners mainly replenished oil due to rigid demand. In the second half of the month, affected by the sharp decline in international crude oil prices, the decline in domestic blending raw material prices had limited support for the cost of the domestic marine fuel market. The coastal bulk freight rates in the downstream shipping market rose, and shipowners gradually replenished oil, but the support from terminal demand was limited. Shipowners were cautious in their operations, and transactions were mainly based on rigid demand.

According to SunSirs, as of June 30, the price of 180cst low-sulfur fuel oil in Dalian was 5,650 RMB/ton, and the price of 120cst low-sulfur fuel oil was 5,750 RMB/ton; the price of 180cst low-sulfur fuel oil in Shanghai was 5,250 RMB/ton, and the price of 120cst low-sulfur fuel oil was 5,350 RMB/ton.

In June, the crude oil market price rose and fell sharply. The crude oil market fluctuated greatly in this cycle. The main reason was the influence of the geopolitical situation in the Middle East. As the situation escalated and cooled down, the crude oil price rose and fell sharply accordingly, and the volatility was relatively large.

In terms of international fuel oil, it is understood that the Singapore Enterprise Development Board (ESG): As of the week of June 25, Singapore's fuel oil inventory rose by 997,000 barrels to a two-week high of 22.50 million barrels; light distillate oil inventories rose by 715,000 barrels to a two-week high of 13.329 million barrels; medium distillate oil inventories fell by 857,000 barrels to a three-week low of 10.363 million barrels.

Forecast for the future market: The rise in international crude oil prices supports the domestic ship fuel market, but the decline in domestic mixed raw material prices has limited support for the ship fuel market. In addition, the downstream shipping market still has more ships and less cargoes, and freight rates are falling. Shipowners just need to replenish oil, and operations are cautious, mainly waiting and watching. According to SunSirs, as of June 30, the self-pickup low-sulfur price of fuel oil 180cst was 5250-5650 RMB/ton, and the self-pickup low-sulfur price of fuel oil 120cst was 5350-5750 RMB/ton. It is expected that the fuel oil 180CST market will be mainly consolidated in the near future.

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