China's Fuel Oil Imports Expected to Fall 9% in January

China is expected to import about 2.2m tonnes of fuel oil in January, up by 230,000 tonnes or 9% from C1 estimation for the previous month, down by 230,000 tonnes or 9% compared with the same period last year, C1 shipping fixtures showed.

The imports of Venezuela fuel oil may drop notably amid mediocre demand from the bonded bunker market, although independent refiners are still actively making purchases. Additionally, Chinese importers made customs declaration of some January cargoes in December 2011, which also dragged January's imports.

The supply of M100 straight-run fuel oil from Russia's Far East will tumble by 22% in January on stronger demand from Japan, Taiwan and South Korea. The premium of the product for January arrival climbed by $5/tonne month on month to $83/tonne on inquires from independent refiners.

China's imports of Singapore-blended straight-run fuel oil will rise obviously in January. A total 8 Aframax-sized cargoes of such feedstock will be supplied to the Shandong market from late January to the first half of February. All of the cargoes will be low or medium-sulphur fuel oil with CFR premiums at $115/tonne and $40-50/tonne, respectively.

Kazakhstan will supply an 80,000-90,000 tonne cargo of straight-run fuel oil with low sulphur content to Shandong in January at a CFR premium of around $100/tonne.

Chinaoil is expected to receive four Venezuela fuel oil cargoes in Asia in January, with 380,000 tonnes to flow into China bunker market, down by 37% from the previous month.

South Korea halved its January bunker fuel oil exports to China because of low demand from Chinese importers. S-Oil will export only 120,000 tonnes of fuel oil in January, down by 40% month on month, most of which were purchased by Japanese traders. SK Energy added 90,000 tonnes of exports for end January delivery to China, with Chimbusco as the receiver.