China’s fuel oil imports fell in May to their lowest monthly volumes so far this year, while bunker exports also plummeted, customs data showed on Friday.

Fuel oil imports totalled 1.30 million metric tons for May, or about 267,000 barrels per day (bpd), down 29% from April and 40% lower than a year earlier.

Higher import costs, suppressed refining margins and lower demand for feedstock from refineries during the maintenance season led to lower imports, industry sources said.

Cracks for high-sulphur fuel oil in Asia hit record highs in May, making it more expensive than crude oil.

Meanwhile, exports of low-sulphur marine fuels totalled 1.24 million tons, sliding 30% from April and falling 26% compared to the same month last year.

Despite a temporary breather in the tariff war that led to an uptick in container ship bookings from the China to the U.S. in May, industry sources said they did not see much improvement in refuelling demand.

“The broader economic environment has not changed that much so demand will not pick up significantly,” a Chinese bunker executive said.

The table below shows China’s fuel oil exports and imports in metric tons.

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