China’s fuel oil imports edged higher in April versus the previous month when it logged a sharp drop, but still compared lower than the same month a year ago, customs data showed.

Fuel oil imports totalled 1.83 million metric tons for April, or about 386,800 barrels per day (bpd), recovering to a two-month high, based on the data.

The imports rose 32% from March, but compared 38% lower than April last year when monthly imports hit their highest since at least 2020.
Poor refining margins and higher importing costs are expected to cap fuel oil imports this year, according to industry sources.
Maintenance at Chinese state-owned refineries and reduced output at independent plants have weighed on refinery throughput in April.

Cracks for high-sulphur fuel oil have also strengthened in recent months, making it more expensive relative to crude.

Meanwhile, April exports of low-sulphur marine fuels totalled 1.77 million tons, broadly stable from March and climbing 8% from the same month last year, customs data showed.

Prices for low-sulphur marine fuels at key Chinese ports Zhoushan and Shanghai held at about parity to those at the Singapore hub in April, based on data from industry sources.

The exports section largely captures low-sulphur oil-bunkering sales along China’s coast. The import volumes include purchases under ordinary trade, which are subject to import duties and consumption tax, as well as imports into bonded storage.
Source: Reuters