China’s fuel oil exports rose sharply in May, driven mainly by stronger low-sulphur marine fuel bunkering demand along the country’s coast. Customs data showed that exports climbed 42% year-on-year to 1.76 million metric tons, equivalent to about 360,695 barrels per day. That was also a 4% increase from April, confirming that China’s marine fuel export activity remained resilient even as domestic refining demand weakened.
The export growth was linked largely to price competition in the regional bunkering market. Market sources said some marine fuel demand shifted from Singapore, Asia’s dominant bunkering hub, to China’s Zhoushan because Chinese port prices were cheaper during most of May. That price advantage helped support bonded storage trade and boosted China’s low-sulphur fuel oil sales to ships operating along regional routes.
The data also showed a very different trend on the import side. China’s fuel oil imports fell to 559,346 tons in May, down 43% from April and 57% from a year earlier. Imports remained capped as independent refiners reduced runs amid weak domestic demand for refined products.
Together, the export and import figures point to a split fuel oil market: China is gaining share in marine fuel bunkering exports while its refinery feedstock demand remains under pressure.
Fuel Oil Exports Rebound After April Decline
China exported 1.76 million tons of fuel oil in May, up from 1.70 million tons in April. The 4% month-on-month gain was modest compared with the 42% year-on-year jump, but it still marked a recovery after April’s decline.
The 2026 export trend has been uneven. January exports totaled 1.52 million tons, before falling to 1.23 million tons in February. March then saw a strong rebound to 1.93 million tons, followed by a decline to 1.70 million tons in April and a renewed increase in May.
This pattern reflects the sensitivity of China’s fuel oil exports to relative bunkering prices, shipping demand, port competition and bonded storage flows. Because the export category largely captures low-sulphur bunkering sales along China’s coast, monthly changes can be influenced by vessel routing and bunker fuel price spreads between Chinese ports and regional competitors.
May’s rebound suggests that China’s coastal bunkering market became more competitive during the month. When Chinese fuel prices are attractive relative to Singapore, shipowners and operators may divert some demand toward ports such as Zhoushan.
Zhoushan Benefits From Cheaper Bunkering Prices
The shift of marine fuel demand from Singapore to Zhoushan is one of the most important details in the data. Singapore remains the dominant bunkering hub in Asia, but China has been working to expand the role of Zhoushan as a regional marine fuel center.
Cheaper prices at Chinese ports during most of May gave Zhoushan an advantage. Bunkering decisions are highly price-sensitive because fuel is one of the largest operating costs for shipping companies. Even small price differences can affect where vessels choose to refuel, especially if alternative ports are located along practical routes.
Zhoushan has become increasingly important because of its location, infrastructure and policy support. A stronger month for Chinese fuel oil exports indicates that the port may have captured additional demand from regional shipping flows.
This does not mean Singapore’s position is structurally weakened, but it does show that price spreads can redirect short-term marine fuel demand. If Chinese ports maintain a discount, China could continue to gain incremental bunkering volumes.
Low-Sulphur Marine Fuel Drives the Export Category
China’s fuel oil export data largely reflects low-sulphur marine fuel sales under bonded storage trade. These exports are not the same as ordinary domestic fuel oil sales. They mostly represent bunker fuel supplied to ships, often in international maritime trade.
Low-sulphur marine fuel became more important after global shipping regulations tightened sulphur limits. Shipowners need compliant fuel unless they use exhaust gas cleaning systems. This has supported the development of specialized bunkering markets in major port hubs.
China’s coastal bunkering sales therefore depend on three factors: available supply of compliant fuel, price competitiveness, and shipping activity. May’s increase suggests that China had enough supply and a favorable pricing position to attract more vessel demand.
The export rise is also significant because it came while China’s imports were falling sharply. That means export strength was not driven by a broad recovery in domestic fuel oil demand, but rather by the specific resilience of the bunkering segment.
Imports Collapse as Independent Refiners Cut Runs
China’s fuel oil imports fell sharply in May, extending the decline that began in April. Imports totaled 559,346 tons, down from 976,599 tons in April and far below the 2.43 million tons imported in March.
The May figure represented a 43% month-on-month drop and a 57% year-on-year decline. This continued weakness shows that Chinese refineries, especially independent refiners, remained cautious.
Fuel oil imports are often used by refiners as feedstock. When refining margins are weak or demand for products is soft, refiners have less incentive to import fuel oil for processing. Market sources said China’s independent refineries trimmed runs due to weak domestic demand for refined products, keeping fuel oil imports capped during the quarter.
This trend matters because independent refiners are an important source of marginal demand. When they slow processing, import volumes can fall quickly. May’s data confirms that refinery-side demand was still under pressure.
Ordinary Trade Imports Fall to Very Low Levels
The detailed customs data show that ordinary trade imports dropped to just 30,031 tons in May, compared with 99,199 tons in April. Bonded storage trade imports were larger at 529,315 tons, but they also fell sharply from 877,400 tons in April.
This structure shows that the import decline was broad, affecting both ordinary trade and bonded storage flows. Ordinary trade imports are subject to duties and consumption tax, while bonded imports are stored under customs supervision and may be used for specific trade or processing purposes.
The collapse in ordinary trade imports is especially notable because it suggests weak direct refinery appetite. If refiners were aggressively seeking feedstock, ordinary trade flows would likely be stronger. Instead, the data point to cautious purchasing and reduced run rates.
The import decline also contrasts sharply with February and March, when imports exceeded 2 million tons. The shift from strong first-quarter imports to weak April and May imports marks a clear change in market conditions.
Weak Domestic Demand Weighs on Refinery Activity
The pressure on fuel oil imports reflects broader weakness in domestic demand for refined products. Independent refiners rely on margins from turning feedstock into products such as diesel, gasoline and other petroleum products. If end-user demand is weak, refiners may cut runs to avoid producing into an oversupplied market.
Lower refinery runs reduce the need for feedstock imports. Fuel oil, which can be used as a refining input by certain plants, becomes less attractive when product cracks and margins are under pressure.
This is why the import side of the market remains weak even as exports rise. China’s bunkering demand is tied to shipping and port competitiveness, while refinery demand is tied to domestic consumption and processing economics.
The split matters for energy traders because it shows that headline export strength does not necessarily indicate a broader recovery in China’s oil product demand.
Exports and Imports Send Opposite Signals
The May data present two opposing signals. Exports were strong because Chinese bunkering prices attracted marine fuel demand. Imports were weak because independent refineries cut runs and reduced feedstock purchases.
This divergence is important. A rise in exports could normally suggest stronger fuel oil demand, but in this case it is more specific. The demand strength is external and port-based, not domestic and refinery-based.
The import weakness, by contrast, points to ongoing softness in China’s internal oil product market. If refiners remain cautious, China may continue importing less fuel oil, even if its ports continue selling more marine fuel.
For global fuel oil markets, this means China can simultaneously act as a stronger bunkering supplier and a weaker feedstock buyer. That combination affects regional flows, pricing spreads and refining economics.
Singapore Faces Short-Term Price Competition
Singapore’s role as the region’s leading bunkering hub remains central, but May’s data show that it faces price competition when Chinese ports offer cheaper fuel. Some marine fuel demand was diverted from Singapore to Zhoushan because Chinese port prices were more attractive.
This type of diversion can happen quickly. Shipping companies choose bunkering locations based on route efficiency, price, fuel availability and port reliability. If Zhoushan offers a meaningful discount without logistical disadvantages, it can capture volumes from Singapore.
However, sustained competition depends on more than one month of price advantage. Singapore has deep liquidity, extensive infrastructure, storage capacity, supplier networks and a long-established reputation. Zhoushan’s ability to gain more share will depend on whether it can maintain competitive pricing and reliable supply.
May’s export rise therefore highlights China’s growing role in the bunkering market but does not yet imply a permanent shift in regional leadership.
What Traders Should Watch Next
The first factor to watch is the China-Singapore marine fuel price spread. If Chinese ports remain cheaper, fuel oil exports could stay supported through bunkering demand.
The second factor is independent refinery run rates. If domestic demand for refined products improves, refiners may raise operations and increase fuel oil imports. If demand remains weak, imports may remain low.
The third factor is monthly bonded storage trade data. Since exports largely capture low-sulphur bunkering sales, bonded trade flows are a key indicator of China’s marine fuel market strength.
The fourth point is shipping activity in regional Asian routes. Higher vessel traffic can support bunkering demand, while weaker freight activity can reduce marine fuel consumption.
Finally, traders should monitor policy and tax changes. Fuel oil flows in China are sensitive to import duties, consumption tax, bonded storage rules and export quota management.
China’s fuel oil exports rose 42% year-on-year in May to 1.76 million metric tons, or about 360,695 barrels per day. The increase was supported by stronger low-sulphur marine fuel bunkering demand, with some volumes shifting from Singapore to China’s Zhoushan due to cheaper Chinese port prices during most of the month.
Imports moved in the opposite direction. China imported only 559,346 tons of fuel oil in May, down 43% from April and 57% from a year earlier. The decline reflected weaker refinery feedstock demand as independent refiners trimmed runs amid soft domestic demand for oil products.
China’s May fuel oil data show a divided market. Export strength reflects China’s growing competitiveness in marine fuel bunkering, especially at Zhoushan. Import weakness reflects cautious refinery activity and poor domestic product demand. For traders, the key question is whether China’s ports can keep attracting bunkering demand while independent refiners remain under pressure.
