SunSirs: The Overall Domestic Ship Fuel Market Fell in May

According to the commodity analysis system of SunSirs, the overall domestic ship fuel market in East China fell in May. As of May 31, the average price of domestic fuel oil 180CST was 5337.50 RMB/ton, down 2.29% from 5462.50 RMB/ton on May 1.

The overall domestic fuel oil 180CST price trend fell in May. In early May, affected by the decline in crude oil during the May Day holiday, the domestic ship fuel market fell. In the first half of the month, the domestic residual oil market rose slightly, which supported the cost of the domestic ship fuel market. The domestic ship fuel market rose slightly; in the middle of the month, the domestic ship fuel raw material market fell, the ship fuel cost was weak, and the market fell; in the second half of the month, the price of mixed raw materials fell, which increased the wait-and-see sentiment in the domestic ship fuel market, and the ship fuel market continued to fall. In the shipping market, the coastal bulk freight rates were weak in early May, shipowners had limited oil replenishment, and transactions were mainly based on rigid demand; in the middle of May, affected by the summer, the market transportation increased and the freight rates rose; in the late May, the shipping market freight rates were mainly stable, and the market procurement was general.

According to SunSirs, as of May 31, the self-pickup low-sulfur price of 180cst fuel oil in Dalian area of ​​China Gas was 5530 RMB/ton, and the self-pickup low-sulfur price of 120cst fuel oil was 5630 RMB/ton; the self-pickup low-sulfur price of 180cst fuel oil in Shanghai area of ​​China Gas was 5250 RMB/ton, and the self-pickup low-sulfur price of 120cst fuel oil was 5350 RMB/ton.

The crude oil market fell first and then rose in May.

The crude oil market fell sharply in early May, mainly because OPEC+ increased production beyond expectations. The news was bearish for international oil prices, and the crude oil market fell sharply. In the later period, as the United States increased its oil restrictions on a certain country and the Middle East region became tense again, the Sino-US tariff issue eased, and the international oil price trend rose. Overall, the international oil price fluctuated higher in May.

In terms of international fuel oil, it is understood that the Singapore Enterprise Development Board (ESG): As of the week of May 28, Singapore's fuel oil inventory rose by 832,000 barrels to a 4-week high of 22.338 million barrels; light distillate oil inventories fell by 533,000 barrels to a nearly 7-month low of 13.021 million barrels; medium distillate oil inventories fell by 369,000 barrels to a two-week low of 9.926 million barrels.

Market outlook: The rise in international crude oil after the holiday boosted the domestic ship fuel market and supported the cost of the ship fuel market; in the ship supply market, the shipping market had general transactions, and shipowners mainly needed to replenish oil. At present, the self-pickup low-sulfur price of fuel oil 180cst is 5150-5400 RMB/ton, and the self-pickup low-sulfur price of fuel oil 120cst is 5250-5500 RMB/ton.

It is expected that the fuel oil 180CST market will be mainly consolidated in the near future.

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