China’s fuel oil imports in March fell 29% from February and slid 30% from the same period last year, customs data showed on Sunday.

Imports totalled 1.38 million metric tons for March, or about 283,212 barrels per day (bpd), based on customs data, bringing the total in the first quarter to 5.22 million tons, a fall of 6.3% year-on-year.

The fuel oil imports typically end up in refineries as a feedstock to produce higher-value oil products.

Run rates for China’s independent oil refiners have nudged higher recently but still face near-term pressure over tepid domestic fuel demand and supply risks from U.S. sanctions and tariffs.

Total oil refinery throughput in China edged up 0.4% in March from a high base a year earlier, government data showed on Tuesday, supported by production increases at small independent plants and higher operations at a new plant.

Exports of low-sulphur marine fuels climbed 33% in March compared with the previous year and were 5% higher than February, the customs data showed.

Prices for low-sulphur marine fuels at key Chinese ports Zhoushan and Shanghai remained cheaper than at the Singapore hub in March, according to trade sources.

Exports of the marine fuels, measured mostly by sales from bonded storage for vessels plying international routes, totalled 4.76 million metric tons for the first quarter, recording an annual increase of 14.3%.

China issued a second batch of marine bunker export quotas at the end of March of 5.2 million metric tons, which is higher than last year.

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