March 30 South China Fuel Oil Market Review

[South China Market Review]

The previous specification 180CST 5500-5550 0

Marine Standard 180CST 5680-5790 0

Domestic high *residue 4270-4300 0

Singapore mixed high *180CST discounted water 13-17 US dollars / ton 0 CFR Whampoa (in mid-April)

On Friday (March 30), South China's fuel oil resources are tight, and the businesses are quite wait-and-see. In the previous period, the 180CST and Kuti transactions were valued at RMB 5,500-5,550/ton, unchanged. Whampoa spot trading, buyers inquiries price stability. Dongguan Haidong Oil Marine 180CST inquiry 5200 yuan / ton, Dongguan new power low * 180CST inquiry 5200 yuan / ton.

Crude oil WTI prices closed down 2.63 US dollars yesterday to close at 102.78 US dollars / barrel. South China fuel oil spot market, continue to maintain a wait-and-see attitude, the owner quoted steady. At present, the specifications of 180CST reported in the previous period were 5570-5650 yuan/ton; the boilers used 180CST reported 4800-5000 yuan/ton, and the ships 180CST reported 5600-5800 yuan/ton. Although the price of crude oil fell for two trading days in a row, it was tightly supported by the fuel oil blending raw materials. Traders were very willing to stay in the market and continued to focus on the outlook of the outer market.

According to industry analysts, at present, the South China fuel oil spot market has tight oil-reserve resources and high oil-transfer costs. The local merchants’ stocks are generally low, and the previous fuel oil prices have all risen to high levels, and the market will still need to digest the previous period of time. Potential. The excessive increase in oil prices is bound to bear the market capacity, the current fundamentals of fuel oil demand tends to ship shipping market, land demand is relatively scarce. The recent performance of merchant shipments is not ideal, and many are in the situation of high prices and low demand. The short-term correction of crude oil prices has little effect on fuel oil, but if it continues to decline, fuel oil prices may face downward pressure. However, in the long term, the fuel oil price should be in a trend of rising and rising, because the domestic macro economy is on a slow growth trend, while the domestic refining capacity is low, and the resource constraints in the short term are difficult to ease, coupled with seasonal demand.

In refineries, the residual oil and non-standard oil prices are stable. The refinery shipped smoothly. Some refiners said that due to the current inventory of resources is not large, and close to the traditional Chinese "Thanksgiving Festival" holiday, temporarily wait for the market conditions have improved and then make plans. Today's high * residue oil reported 4,300 yuan / ton; top line oil price 7500-8400 yuan / ton; first-line oil reported 7550-8350 yuan / ton; second-line oil reported 7450-7500 yuan / ton; third-line oil reported 6800 yuan / ton; Non-standard diesel reported 8400-8650 yuan / ton; both continue to maintain stability. Slurry market, today quoted steady at 4800-5200 yuan / ton.

There was no stop to start the refinery this week, and the overall operating rate of ground refining remained stable. As of March 30, the average operating rate of small refineries in Guangdong was 17.5%, which was flat compared to last week. According to the survey data, the small refineries started in Guangdong this week were Panyu Huahong, Sanshui Yihao, Huafeng Petrochemical, Baota Petrochemical and Sanshui Santai. The total processing volume of the five refineries was stable at 7,550 tons. Crude oil prices fell sharply this week, import costs trailed down, and fuel oil refining losses substantially decreased. The price of residual oil and non-standard oil has risen to a high level due to the price increase of refined oil in the previous period. Terminal demand is limited, and the overall refinery shipments tend to be flat. Most of the refineries began to suffer setbacks, and some of the refineries that started construction maintained low processing levels. At present, there is no change in market demand, and the issue of tightening raw materials for oil refining has been plagued with difficulties. The specific start-up dates for Reelection, Haishengda, and Yingchang are unknown. It is not ruled out that the refining raw materials will be supplemented and the production will be resumed. It is expected that in the next week, the overall operating rate of Guangdong Xiaolian is still at this position.

In terms of shipping schedule, at the beginning of April, a vessel carrying approximately 80,000 tons of Singapore blend oil arrived in Shenzhen. Shenzhen Guanghui took delivery of the cargo and the name of the vessel is unknown. In terms of re-exports, on March 30th, Anji River loaded 4200 tons of mixed oil from Taishan Xiaohu Island and exported it to Hong Kong. The exporter was Sinopec Singapore.