In mid-September, the price of 180CST fuel oil in China saw a slight increase

September 22, News

According to the commodity analysis system, in mid-September, the price of 180CST fuel oil in the East China region showed a slight increase. As of September 21, the average price of 180CST fuel oil in China was 5450.00 CNY per ton (including tax), representing a 0.69% increase from 5412.50 CNY per ton on September 11.

It is understood that the recent international crude oil market has been fluctuating and rising, boosting the Chinese marine fuel market, with the blending raw material prices for Chinese marine fuels steadily increasing, providing cost support; downstream coastal shipping market negotiation activities have increased, freight rates for bulk carriers have risen, and shipowners' pre-holiday refueling demand has increased. It is understood that as of September 21, the self-pickup low-sulfur quotation for 180cst fuel oil in the Zhongran Dalian area was 5550 CNY/ton, and the self-pickup low-sulfur quotation for 120cst fuel oil was 5650 CNY/ton; in the Zhongran Shanghai area, the self-pickup low-sulfur quotation for 180cst fuel oil was 5350 CNY/ton, and the self-pickup low-sulfur quotation for 120cst fuel oil was 5450 CNY/ton.

Recently, crude oil prices have been fluctuating and rising, primarily due to market concerns over potential supply risks triggered by the Russia-Ukraine conflict, coupled with the Federal Reserve's decision to cut interest rates by 25 basis points, which has provided support for oil prices.

In terms of international fuel oil, the Singapore Enterprise Development Agency (ESG): As of the week of September 17, Singapore's fuel oil inventory decreased by 1.118 million barrels to a three-week low of 25.41 million barrels; middle distillate inventory decreased by 0.144 million barrels to a three-week low of 9.719 million barrels; light distillate inventory increased by 0.259 million barrels, reaching a two-week high of 14.366 million barrels.

Market Forecast: Currently, freight rates in the downstream shipping market remain stable, as shipowners are stocking up on fuel ahead of the holiday season. Meanwhile, the spot price for 180cst low-sulfur fuel oil available for self-collection stands at RMB 5,300–5,550 per ton, while 120cst low-sulfur fuel oil fetches RMB 5,400–5,650 per ton for self-collection. It is expected that the 180CST fuel oil market may see a slight upward trend in the near term.