China is likely to import about 2.18-mil mt of fuel oil in October, up by 7% or 150,000mt from the estimate for September, C1 shipping schedules showed.
This volume will be sharply up by about 28% or 480,000mt from the same month in 2010.
Shandong-based importers showed much stronger interest in fuel oil imports for September arrivals, as local commercial fuel oil stockpiles dropped to relatively low levels after smaller imports in the previous two months, according to market sources.
The country's fuel oil imports from Southeast Asia, Russia and some other suppliers are expected to grow this month. Its imports from Singapore are expected to gain 14% month on month and those from other countries in Southeast Asia are likely to increase 27%, the shipping schedules indicated.
Fuel oil imports from Russia are estimated at 400,000-450,000mt for October, with about 310,000mt from ports at the Far East and 120,000mt from European ports.
As Singapore fuel oil benchmarks stayed low and demand from Shandong was booming, the CFR premiums of M100 fuel oil grew notably for October. For October delivery to Shandong, the CFR premiums went up to about US$70/mt in late September, up by US$8/mt from those for September arrivals, according to market sources.
Fuel oil imports from Europe (excluding Russia) are expected to stay low at about 100,000mt in October. No cargoes from Kazakhstan have been scheduled to reach China this month.
Guangdong Zhenrong Energy will not ship any Iranian 280CST fuel oil to China in October, according to market sources. However, some other traders have sold some fuel oil from the Middle East for October delivery to China.
