China Fuel Oil 180CST Market Trends Show Slight Decline in Mid-August

August 19, News

According to the commodity analysis system, in mid-August, the 180CST fuel oil market in East China showed a slight downward trend, with an overall small increase. As of August 19, the average price of 180CST fuel oil in China was 5275.00 CNY/ton (including tax), a decrease of 0.94% from the price of 5325.00 CNY/ton on August 11.

It is understood that the international crude oil market fluctuated in mid-August, increasing the wait-and-see sentiment in China's marine fuel market. The prices of blended raw materials for China's marine fuel remained stable, while the prices of thinners fell, leading to a slight easing in the cost of marine fuel. In the downstream shipping market, coastal freight rates saw a small increase, but shipowners' refueling was limited, with transactions mainly driven by rigid demand. It is understood that as of August 19, the self-pickup low-sulfur 180cst fuel oil price in Dalian by China National Offshore Oil Corporation (CNOOC) was 5,520 CNY/ton, and the 120cst fuel oil price was 5,620 CNY/ton. In Shanghai, the self-pickup low-sulfur 180cst fuel oil price was 5,050 CNY/ton, and the 120cst fuel oil price was 5,150 CNY/ton.

In mid-August, crude oil prices experienced volatile trading, primarily as the market awaited the outcome of the upcoming meeting between U.S. and Russian leaders, while geopolitical tensions remained poised for further easing.

On the international fuel oil front, Singapore's Enterprise Singapore (ESG) reported that, as of the week ending August 13, Singapore's fuel oil inventories fell by 1.674 million barrels to a three-week low of 24.645 million barrels. Meanwhile, light distillate stocks rose by 1.234 million barrels, reaching a 16-week high of 14.24 million barrels, while middle distillate inventories increased by 653,000 barrels, climbing to a five-week peak of 9.326 million barrels.

Market Forecast: Rising crude oil prices are boosting China's marine fuel market, driving steady upward trends in blended fuel oil feedstock prices. In the bunkering market, shipping transactions remain primarily driven by immediate demand, with traders adopting a cautious approach and maintaining a strong wait-and-see attitude. Currently, the ex-factory price for 180cst low-sulfur fuel oil stands at RMB 5,100–5,500 per ton, while 120cst low-sulfur fuel oil is quoted at RMB 5,200–5,600 per ton. It is expected that the 180CST fuel oil market will likely consolidate in the near term.