SunSirs: Weak Consolidation of China Domestic Fuel Oil 180CST Market at the End of April

According to the commodity analysis system of SunSirs, the 180CST fuel oil market in East China was weakly consolidated at the end of April, with a slight overall decline. As of April 30th, the average price of 180CST fuel oil in China was 5,462.50 RMB/ton (including tax), a decrease of 0.23% from the 5,475.00 RMB/ton price on April 27th.

According to SunSirs, the increase in the price of ship fuel blended raw materials at the end of April provided cost support for the domestic ship fuel market, while the downstream shipping market saw a slight decline in coastal bulk freight rates. Some ship owners refueled before the holiday, but the support for terminal demand was limited, and the market situation was mainly wait-and-see. According to Business News Agency, as of April 30th, the self pickup low sulfur quotation for 180CST fuel oil in Dalian area of China National Chemical Corporation is 5,610 RMB/ton, and the self pickup low sulfur quotation for 120CST fuel oil is 5,710 RMB/ton; The self extracted low sulfur quotation for 180CST fuel oil in the Shanghai area of China National Fuel Oil Corporation is 5,250 RMB/ton, and the self extracted low sulfur quotation for 120CST fuel oil is 5,350 RMB/ton.

Recently, the trend of crude oil prices has fallen. On the one hand, there are significant differences within OPEC+ regarding crude oil production, leading to increased uncertainty in the prospects of crude oil supply and mainly low-level fluctuations in the crude oil market. On the other hand, the increase in tariffs by the United States has raised concerns about global demand for crude oil, causing the crude oil market to remain volatile at a low level.

In terms of international fuel oil, the Singapore Enterprise Development Board (ESG) reported that as of the week ending April 23, Singapore's fuel oil inventories rose by 1.239 million barrels to an 18 week high of 24.126 million barrels; The inventory of middle distillate oil decreased by 1.138 million barrels, reaching a 9-month low of 8.576 million barrels; The inventory of light distillate oil increased by 1.128 million barrels, reaching a two-week high of 15.62 million barrels.

The recent decline in crude oil has increased the wait-and-see sentiment in the domestic ship fuel market; The demand in the shipping market is relatively weak, with a focus on essential needs for transactions. At present, the self extracted low sulfur quotation for 180CST fuel oil is 5,250-5,600 RMB/ton, and the self extracted low sulfur quotation for 120CST fuel oil is 5,350-5,700 RMB/ton. It is expected that the 180CST fuel oil market will mainly consolidate after the holiday.

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