China’s fuel oil imports cooled in May after reaching multi-year highs in the previous month, according to data from the General Administration of Customs.
May’s fuel oil imports totaled 2.15 million metric tons (around 441,180 barrels per day), marking a 27% decline from April and a 19% drop compared to the same period a year earlier.
The drop in import volumes was largely attributed to a retreat in demand, as fuel oil prices rose in line with strengthening cracks (the price difference between high-sulfur fuel oil and crude oil) in the Asian market. Towards the end of May, the cracks for 380-cst high-sulfur fuel oil (HSFO) reached their highest level in nine months, according to data from LSEG.
In April, China’s fuel oil import volumes had surged to their highest level since at least 2020, as traders imported more shipments from Venezuela and Iran, and some refiners increased their purchases of the commodity as feedstock, before prices rose further.
Meanwhile, China’s fuel oil export volumes for bunkering (ship fuel) stood at 1.66 million tons in May, up 1% from April but down 10% compared to the same month last year.
The decline in China’s fuel oil imports in May, following the previous month’s multi-year high, highlights the volatility in the country’s fuel oil trade, as market dynamics and price movements continue to shape import and export patterns.