China's clean marine fuel exports fell in July, official data showed on Tuesday, despite a surprise surge in the country’s total exports of general goods.
Exports of the very low-sulphur fuel oil (VLSFO), with a maximum sulphur content of 0.5% to comply with emission rules set by the International Maritime Organization (IMO), were 1.18 million tonnes, down from June’s 1.26 million tonnes.
Exports for the first seven months totalled 7.64 million tonnes, according to data from the General Administration of Customs.
Fuel oil imports into bonded storage, which include both high sulphur and low sulphur materials, were around 520,000 tonnes, down from 1.29 million tonnes in June.
Part of the high sulphur imports could be for deliveries into bonded storage against the futures contracts traded at the Shanghai Futures Exchange.
Chinese refineries have expanded their production capacity of VLSFO amid Beijing’s push to reduce its reliance on bunker fuel imports and to create its own marine fuel hub to supply northern Asia.
Plants began exporting VLSFO in January after Beijing offered tax incentives to boost local production of the fuel, but only allowed four state refiners – Sinopec, CNPC, CNOOC and Sinochem – and private refiner Zhejiang Petrochemical Corp to export under a combined quota of 10 million tonnes.
Source:Reuters
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