SunSirs: China Domestic Ship Fuel Market Fluctuated and Rose in September

According to the commodity analysis system of SunSirs, the domestic ship fuel market in East China fluctuated and rose in September. As of September 30th, the average price of domestic fuel oil at 180CST was 5,475.00 RMB/ton, an increase of 1.62% from 5,387.50 RMB/ton on September 1st.

The domestic fuel oil price of 180CST fluctuated upward in September: In early September, due to the large-scale conference in the north, on-site operations were reduced, and some ships' refueling demand moved southward. In addition, the shipping market freight rates fell, and terminal demand was poor, resulting in a slight decline in ship fuel prices; In the second half of the year, domestic ship fuel blending raw materials saw a surge in prices, which supported the cost of ship fuel; The enthusiasm for negotiations in the downstream coastal shipping market has increased, bulk cargo prices have risen, and the demand for pre holiday oil replenishment by ship owners has increased. The domestic ship fuel market continues to rise. According to SunSirs, as of September 30th, the self extracted low sulfur quotation for 180CST fuel oil in Dalian area of China National Fuel Oil Corporation is 5,550 RMB/ton, and the self extracted low sulfur quotation for 120CST fuel oil is 5,650 RMB/ton; The self extracted low sulfur quotation for 180CST fuel oil in the Shanghai area is 5,350 RMB/ton, and the self extracted low sulfur quotation for 120CST fuel oil is 5,450 RMB/ton.

In September, the crude oil market prices fluctuated widely, and the crude oil market was affected by both long and short factors. On the one hand, geopolitical factors remain an important factor affecting the crude oil market. The Russia Ukraine issue has led to a strong operation of the crude oil market, coupled with the Federal Reserve's interest rate cuts benefiting the international oil market, resulting in an upward trend in the crude oil market. On the other hand, Saudi crude oil may increase production, leading to an increase in US crude oil inventories. In addition, with the end of the peak oil season in the US, the global economic outlook and oil demand are not optimistic, putting pressure on crude oil market prices.

In terms of international fuel oil, it is reported that the Singapore Enterprise Development Board (ESG) stated that as of the week ending October 1st, Singapore's fuel oil inventories rose by 1.757 million barrels, reaching a two-week high of 24.561 million barrels.

During the National Day holiday, ship owners urgently need to replenish oil for small orders, and coastal bulk cargo prices are weak. The market is mainly observing and waiting. At present, the self extracted low sulfur quotation for 180CST fuel oil is 5,300-5,550 RMB/ton, and the self extracted low sulfur quotation for 120CST fuel oil is 5,400-5,650 RMB/ton. It is expected that the fuel oil 180CST market will mainly consolidate in the near future.

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