China’s exports of very-low-sulphur marine fuel was flat in June versus May at 1.41 million tonnes, with year-to-date sales remaining 7% below year-prior levels, customs data showed on Wednesday.

Exports for the first half of 2022 totalled 9.09 million tonnes, compared to 9.81 million tonnes a year earlier, as bunker fuel sales were hit by COVID-19 lockdown-induced slowdown which disrupted trade.

The lower exports of 0.5% sulphur fuel oil were also in line with a fall in the nation’s refinery production, which posted the first annual decline since at least 2011.

China’s merchandise exports rose at the fastest pace in five months in June as factories revved back up after the lifting of COVID-19 restrictions, but a sharp slowdown in imports, fresh virus flare-ups and a darkening global outlook pointed to a bumpy road ahead for the economy.

Due to thinning domestic supplies and elevated global markets, China’s average VLSFO prices had soared three-quarters to $859 a tonnes between January and June on a delivered basis at Zhoushan port, China’s top bunker hub, according to Chinese commodities consultancy JLC.

Meantime, fuel oil imports into bonded storage, including both high-sulphur and low-sulphur products, rose to the highest so far this year at 636,042 tonnes last month, but remained 15%below June 2021, data from the General Administration of Chinese Customs showed.

Imports in the general trade category, however, slumped to the lowest so far this year at around 192,000 tonnes last month, but imports for the January-June period soared 137% from a year before.

Imports under this category are mostly made by independent petrochemical firms and independent refiners as feedstock.

MAREX MEDIA