China's July marine fuel exports up 13.22% from June

Beijing: China's exports of very-low-sulphur marine fuel rebounded 13.22 per cent in July versus June as the country's merchandise exports recovered, but still stood nearly 9.69 per cent below the year-ago level, customs data showed on Saturday.

Exports of very-low-sulphur fuel oil (VLSFO), measured mostly by sales from China's bonded storage for vessels plying international routes, were 1.60 million tonnes, data from the General Administration of Customs

showed.

That compared to 1.408 million tonnes in June and 1.766 million tonnes a year before, Reuters reported.

China's merchandise exports in July grew 18 per cent on the year in the fastest pace this year, an encouraging boost to the economy as its struggles to recover from a COVID-induced slump, but weakening global demand could start to drag on shipments in coming months.

Foreign trade container throughput at eight major Chinese ports rose 14.5 per cent in July, speeding up from the 8.4 per cent growth in June, according to data from China's port association.

But strict COVID measures and rare heatwaves in eastern and southern provinces, where the country's main export hubs are located, crimped factory output, thus constraining shipments.

Weaker-than-expected growth in merchandise imports, up only 2.3 per cent on the year, also capped further growth for the marine fuel. VLSFO exports for the January-July period reached 10.69 million tonnes, down from 11.52 million tonnes in the same period of last year.

Fuel oil imports into bonded storage, including both high-sulphur and low-sulphur products, fell nearly 57.96 per cent on the year to 0.31 million tonnes.

The table below shows China's fuel oil imports and exports, all in metric tonnes.

The column of exports under bonded storage trade largely captures China's low-sulphur oil bunkering sales along its coast.