SunSirs: China Domestic Fuel Oil 180CST Market Mainly Remained Stable by the End of September

According to the commodity analysis system of the SunSirs, the market of fuel oil 180CST in East China remained stable at the end of September. As of September 30, the average price of domestic fuel oil 180CST was 5,475.00 RMB/ton (all taxes included), which was mainly stable compared with the price on September 28.

According to SunSirs, the international crude oil market fell at the end of the month, which had limited support for the domestic ship fuel market. The domestic ship fuel blended raw material prices remained stable, and the ship fuel market was mainly in a wait-and-see mode. The downstream coastal shipping market freight rates fell, and shipowners' pre-holiday refueling was basically over. Coupled with some logistics disruptions during the double holidays, shipowners' refueling orders were mostly small-batch rigid demand. According to the business community, as of September 30, the self-pickup low-sulfur quotation for fuel oil 180CST in Dalian area of China Gas was 5,550 RMB/ton, and the self-pickup low-sulfur quotation for fuel oil 120CST was 5,650 RMB/ton; the self-pickup low-sulfur quotation for fuel oil 180CST in Shanghai area of China Gas was 5,350 RMB/ton, and the self-pickup low-sulfur quotation for fuel oil 120CST was 5,450 RMB/ton.

The recent decline in crude oil prices is primarily attributed to the OPEC+ plan to continue increasing production in November, coupled with the resumption of crude oil exports from the Kurdish region of Iraq, leading to a drop in international oil prices.

In terms of international fuel oil, the Enterprise Singapore Development Board (ESG) reported that as of the week of September 24, Singapore's fuel oil inventories fell by 2.606 million barrels to a 13-week low of 22.804 million barrels. Singapore's middle distillate inventories fell by 240,000 barrels to a 4-week low of 9.479 million barrels. Singapore's light distillate inventories rose by 250,000 barrels to a 5-week high of 14.616 million barrels.

Currently, the downstream shipping market is experiencing a decline in freight rates, leading to a decrease in demand for transportation. Shipowners are only making small orders for fuel. Currently, the low-sulfur fuel oil 180CST self-pickup price is between 5,300-5,550 RMB/ton, and the low-sulfur fuel oil 120CST self-pickup price is between 5,400-5,650 RMB/ton. It is expected that the market for fuel oil 180CST may experience a slight increase after the holiday.

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