SunSirs: China Domestic Ship Fuel Market Fluctuated in January

According to the commodity analysis system of SunSirs, the domestic ship fuel market in East China fluctuated in January. As of January 30th, the average price of domestic fuel oil at 180CST was 5,362.50 RMB/ton, an increase of 0.23% from 5,350.00 RMB/ton on January 1st.

In January, the domestic fuel oil price of 180CST fluctuated: in mid to early January, the domestic ship fuel blending raw material prices fell, with limited cost support, and the terminal coastal bulk cargo freight rates fell. Shipowners mainly needed small orders for refueling, and ship oil prices continued to decline; The continuous rise in international crude oil prices in the latter half of the year has boosted the domestic ship fuel market. Recently, the value has been affected by cold air, and the demand for coal transportation has increased compared to the previous period. Terminal freight rates continue to rise slightly, and ship fuel market prices continue to rise. According to SunSirs, as of January 30th, the self extracted low sulfur quotation for 180cst fuel oil in Dalian area of China National Fuel Oil Corporation is 5,350 RMB/ton, and the self extracted low sulfur quotation for 120cst fuel oil is 5,450 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.

The international crude oil market fluctuated and rose in January: The crude oil market was affected by multiple positive factors such as the impact of the US winter storm on supply and the escalation of geopolitical tensions in the Middle East. The core driving force was the significant short-term supply disturbance, coupled with the rebound of geopolitical risk premiums, and the concentrated release of bullish sentiment in the market. The crude oil market continued to rise. The crude oil market directly affects the domestic refined oil market, and domestic gasoline and diesel prices have risen accordingly.

In terms of international fuel oil, it is reported that the Singapore Enterprise Development Board (ESG): as of the week ending January 28th, Singapore's fuel oil inventories decreased by 3.44 million barrels, reaching a 37 week low of 19.938 million barrels; Singapore's light distillate oil inventory rose by 1.087 million barrels, reaching a 149 week high of 16.908 million barrels; Singapore's middle distillate oil inventory decreased by 41,000 barrels, reaching a two-week low of 8.597 million barrels.

The sustained rise in international crude oil prices has boosted the domestic ship fuel market, with shipowners gradually stocking up. In addition, the tight supply of tax paying resources in some regions has led to a continuous increase in ship fuel prices; Affected by costs, coastal bulk freight rates have increased, but the demand in the terminal market has been average. At present, the self extracted low sulfur quotation for 180cst fuel oil is 5,250-5,350 RMB/ton, and the self extracted low sulfur quotation for 120cst fuel oil is 5,350-5,450 RMB/ton. It is expected that the fuel oil 180CST market will continue to rise in the near future.

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