SunSirs: China Domestic Ship Fuel Market first Rose and then Fell in March

According to the Commodity Analysis System of SunSirs, the domestic ship fuel market in March first rose and then fell, with an overall slight decline. As of March 31, the average price of domestic fuel oil 180CST was 5,600.00 RMB/ton, a decrease of 0.53% from 5,630.00 RMB/ton on March 1.

In March, the overall domestic fuel oil price of 180CST saw a slight decline. At the beginning of the month, the domestic blending cost was loose, and merchants were mainly wait-and-see. Transactions were light, and the ship fuel market was mainly consolidated; The rise in international crude oil prices and the strong domestic mixed raw material prices in mid month support the marine fuel market, leading to an increase in the market trend; In the latter half of the year, mixed raw materials remained stable and declined, with limited cost support for the ship fuel market, resulting in a decline in ship fuel market prices. The demand in the shipping market and the shipping terminal market is weak, and coastal bulk transportation prices are consolidating at a low level. The demand for bulk commodity transportation has shrunk, and the consumption of ship fuel has decreased. Merchants mainly purchase on demand. According to the SunSirs, as of March 31, the self pickup low sulfur quotation for fuel oil in the Dalian area of CNOOC is 5,800 RMB/ton, and the self pickup low sulfur quotation for fuel oil in the Dalian area is 5,900 RMB/ton; The price for self extracting low sulfur fuel oil in the Shanghai area of CNOOC is 5,550 RMB/ton for 180CST, and 5,650 RMB/ton for self extracting low sulfur fuel oil in 120CST.

In March, the crude oil market first rose and then fell. In the first half of the year, the market performance was relatively stable, and by March 13th, international crude oil futures had risen significantly, with a daily increase of nearly 3%. The main reason is that the US EIA inventory data is positive, coupled with Ukraine's attack on Russian refineries, geopolitical tensions have pushed up the risk premium of crude oil. In the latter half of the year, the crude oil market experienced a slight decline due to the strengthening of the US dollar combined with an increase in US crude oil inventories.

In terms of international fuel oil, it is understood that the Singapore Enterprise Development Group (ESG): As of the week ending March 27th, Singapore's fuel inventory decreased by 606,000 barrels, reaching a two-week low of 21.403 million barrels; The inventory of light distillate oil increased by 138,000 barrels, reaching a two-week high of 15.239 million barrels; Medium distillate oil inventories decreased by 215,000 barrels to a three week low of 10.134 million barrels.

International crude oil prices fluctuate and rise, supporting the cost of ship fuel market. However, domestic blending costs have fallen, providing limited support for the ship fuel market; The demand in the shipping terminal market is weak, the demand for bulk commodity transportation has shrunk, the consumption of ship fuel has decreased, and merchants mainly purchase on a first-time basis. At present, the low sulfur market price of fuel oil 180CST is around 5,600-5,800 RMB/ton, and the low sulfur market price of fuel oil 120CST is around 5,700-5,900 RMB/ton, which is a single negotiation. It is expected that the fuel oil 180CST market will mainly consolidate in the near future.

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