At the end of the month, the 180CST fuel oil market in China remains stable

November 28 news

According to the commodity analysis system, the price of 180CST fuel oil in the East China region remained stable at the end of the month. As of November 28, the average price of 180CST fuel oil in China was 5,350.00 CNY/ton (including tax), unchanged from the price on November 27.

It is understood that the slight increase in international crude oil prices on the 28th boosted the Chinese marine fuel market; the demand for coastal shipping in the downstream market has weakened, and freight rates for bulk cargo have continued to fall, with shipowners' refueling needs mainly being driven by necessity. It is understood that as of November 28th, the self-pickup low-sulfur 180cst fuel oil price in Dalian by China National Offshore Oil Corporation (CNOOC) was 5,540 CNY per ton, and the self-pickup low-sulfur 120cst fuel oil price was 5,640 CNY per ton; in Shanghai, the self-pickup low-sulfur 180cst fuel oil price was 5,000 CNY per ton, and the self-pickup low-sulfur 120cst fuel oil price was 5,100 CNY per ton.

Regarding international fuel oil, according to the Enterprise Singapore (ESG): As of the week ending November 26, Singapore's fuel oil inventories rose by 191,000 barrels to a two-week high of 24.709 million barrels; light distillate inventories stood at 13.524 million barrels, down 8.98 million barrels from the previous week, marking a two-week low.

Market Forecast: Currently, the international crude oil market is experiencing increasing volatility, leading to a wait-and-see sentiment in China's marine fuel market. The downstream shipping market remains weak, and the situation of ample vessel supply and limited cargo demand continues unabated. As a result, shipowners are primarily placing small, urgent orders for refueling. At present, the ex-warehouse price for 180cst low-sulfur fuel oil stands at RMB 5,100–5,550 per ton, while the ex-warehouse price for 120cst low-sulfur fuel oil is RMB 5,200–5,650 per ton. It is expected that the 180CST fuel oil market will likely remain weak and consolidate in the near term.