China's Marine Fuel Market Prices Slightly Increased in February

February 28 news

According to the commodity analysis system, the bunker fuel market in East China showed fluctuations in February. As of February 28, the average price of 180CST fuel oil in China was 5425.00 CNY/ton, an increase of 1.17% from 5362.50 CNY/ton on February 1.

In February, the overall price of 180CST fuel oil in China rose: In the early part of the month, due to pre-holiday stocking by downstream users, the demand for bunker fuel increased. After the holiday, the prices of blending components for bunker fuel in China remained stable and slightly increased, with low inventory levels providing cost support, leading to a slight rise in bunker fuel prices. The freight rates for bulk carriers also saw a small increase, and shipowners were actively dispatching ships, mainly driven by the need to replenish fuel. According to reports, as of February 28, the self-pickup price for low-sulfur 180CST fuel oil in Dalian, offered by China National Offshore Oil Corporation (CNOOC), was 5,500 CNY per ton, while the price for 120CST was 5,600 CNY per ton. In Shanghai, the self-pickup price for low-sulfur 180CST fuel oil was 5,400 CNY per ton, and for 120CST it was 5,500 CNY per ton.

In February, international crude oil prices experienced volatile upward movements. In the short term, international crude oil prices will continue to fluctuate in response to developments in U.S.-Iran negotiations and localized geopolitical risks. Geopolitical premiums remain the core pricing factor, and high volatility is expected to persist.

Regarding international fuel oil, according to information from Singapore’s Enterprise Singapore (ESG): As of the week ending February 25, Singapore’s residual fuel oil inventories—including fuel oil and low-sulfur wax-containing residues—rose by 103,000 barrels, reaching a two-week high of 22.632 million barrels. Light distillate inventories—including naphtha, gasoline, and reformate—fell by 2.19 million barrels, dropping to a four-week low of 17.284 million barrels. Medium distillate inventories declined by 581,000 barrels, hitting their lowest level in two years at 7.527 million barrels.

Market Forecast: The continued rise in international crude oil prices is boosting China’s marine fuel market. Shipowners are gradually replenishing their fuel stocks, driving up marine fuel prices further. Affected by rising costs, coastal bulk freight rates have also increased, providing additional support to the marine fuel market. Currently, the ex-warehouse quote for 180cst low-sulfur fuel oil stands at RMB 5,300–5,450 per ton, while the ex-warehouse quote for 120cst low-sulfur fuel oil is RMB 5,400–5,550 per ton. It is expected that the 180CST fuel oil market will continue its upward trend in the near term.