China’s Fuel Oil Exports Jump to Highest Level of 2026 as Marine Fuel Demand Strengthens

BY COMFORT OGBONNA

China’s fuel oil exports surged in June, reaching their highest monthly level of the year as stronger demand for marine fuel and more competitive pricing at Chinese ports attracted international shipping companies seeking lower-cost refueling options.

According to data released by China’s General Administration of Customs, fuel oil exports totaled 2.73 million metric tons in June, equivalent to approximately 577,000 barrels per day. The figure represented a sharp 55% increase from May and an 18% rise compared with the same month a year earlier, highlighting the growing importance of China’s bunkering industry in the regional marine fuel market.

The increase was driven primarily by exports of low-sulfur fuel oil used for marine bunkering, the process of supplying fuel to commercial vessels. China’s coastal ports have become increasingly competitive in recent years as the country expands its role as a major refueling hub for international shipping.

Industry sources said demand strengthened particularly during the second half of June as shipping companies took advantage of lower bunker fuel prices available at key Chinese ports.

Prices for delivered 0.5% low-sulfur marine fuel at major ports such as Zhoushan and Shanghai were approximately $50 per metric ton cheaper than comparable supplies at Singapore, Asia’s largest and most established marine fuel hub. The significant price difference encouraged more vessels traveling through regional shipping routes to refuel in China instead of Singapore, boosting export volumes.

China has invested heavily in developing its bunkering infrastructure over the past several years, allowing ports such as Zhoushan to compete more aggressively with established international fueling centers. Competitive pricing, expanded storage capacity, and improved logistics have all contributed to the country’s growing share of the global marine fuel market.

While exports recorded strong growth, China’s fuel oil imports also recovered during June after falling to a record low in May.

Customs data showed imports reached 982,783 metric tons in June, representing a 76% increase from the previous month. Despite the rebound, import volumes remained about 30% lower than those recorded in June of last year, indicating that overall domestic demand for imported fuel oil remains relatively subdued.

Market analysts said Chinese refineries continued to show limited interest in purchasing imported fuel oil as a feedstock. Instead, many refiners have increasingly favored processing cheaper crude oil, which has become more economically attractive amid changing global energy prices and refinery margins.

The weaker appetite for imported fuel oil reflects broader adjustments within China’s refining sector as companies seek to optimize production costs while responding to fluctuations in both domestic demand and international crude prices.

For the first six months of 2026, China’s total fuel oil imports reached 9.39 million metric tons, down 3.6% compared with the same period in 2025. The decline suggests that although monthly imports rebounded in June, the overall trend for the year remains below last year’s pace.

The customs figures cover several categories of fuel oil trade. Export volumes are dominated by low-sulfur marine fuel supplied to international vessels along China’s coastline through the country’s expanding bunkering network.

Import statistics include fuel oil purchased under standard trade arrangements that are subject to import duties and consumption taxes, as well as shipments placed into bonded storage facilities before being released into the domestic market or re-exported.

China’s growing competitiveness in the marine fuel market comes at a time when global shipping companies are increasingly focused on reducing operating costs while complying with international environmental regulations that require the use of cleaner-burning low-sulfur fuels. By offering competitively priced fuel and expanding its port infrastructure, China continues to strengthen its position as one of Asia’s leading marine bunkering centers.

Looking ahead, analysts expect China’s fuel oil exports to remain supported if domestic bunker fuel prices continue to undercut regional competitors. However, import demand may remain restrained as refiners continue to favor lower-cost crude oil over imported fuel oil feedstocks, depending on market conditions and refining margins in the months ahead.