C1 Methodology and Specifications Guide ---Fuel Oil
Fuel Oil
Fuel oil, also known as heavy oil or residue, is a black-brown sticky flammable liquid fuel. It is one of the refined products from crude refining. It is mainly a fraction obtained from residue of petroleum distillation and petroleum cracking.
Fuel oil usually has high non-hydrocarbon compounds, colloids and asphaltenes, medium viscosity, relatively low carbon residue and ash content.
It generates large amount of heat when burning. With relatively high heating value and low corrosivity, fuel oil can be used as burning fuel for boilers. As flash point is quite high, fuel oil is fairly safe during usage and storing.
Fuel oil is widely used as bunker boiler fuel, burning boiler fuel, metallurgical and industrial boiler fuel. It is applied in power generation, petrochemical, transportation, building and steel industries.
Fuel Oil Specifications
| Item | Testing Method | M/C 180CST HSFO (East China) |
M/C 180CST HSFO (South China/International) |
M/C 380CST HSFO (International) |
SR 180CST HSFO | MS 180CST | SR 280CST HSFO | |
| Density (15℃,kg/l) | ASTM D1298 | ≤ | 0.991 |
0.985 |
0.985 |
0.97 |
0.96 |
0.97 |
| Kinematic viscosity (50℃,CST) | ASTM D445 | ≤ | 180 |
180 |
380 |
180 |
180 |
280 |
| Sulfur (m/m,%) | ASTM D4294/D1552 | ≤ | 3.5 |
3.5 |
3.5 |
3.5 |
2 |
3.5 |
| ＞ | - |
- |
- |
- |
- |
- |
||
| Flash Point (℃, closed cup) | ASTM D93 | ≥ | 66 |
66 |
66 |
66 |
66 |
66 |
| Pour point (℃) | ASTM D97 | ≤ | 24 |
24 |
24 |
24 |
24 |
24 |
| Ash on weight basis (m/m, %) | ASTM D482 | ≤ | 0.15 |
0.1 |
0.15 |
0.1 |
0.1 |
0.1 |
| Water by distillation volume (V/V, %) | ASTM D95 | ≤ | 1 |
0.5 |
0.5 |
0.5 |
0.5 |
0.5 |
| Carbon residue (m/m, %) | ASTM D189 | ≤ | 15 |
14 |
15 |
15 |
10 |
15 |
| Total existent mechanical impurities (m/m, %) | ASTM D4870 | ≤ | 0.1 |
0.1 |
0.1 |
0.1 |
0.1 |
0.1 |
| Vanadium (PPM) | ICP-AES | ≤ | 200 |
150 |
300 |
60 |
60 |
60 |
| Aluminum and silicon (PPM) | ICP-AES | ≤ | 80 |
80 |
80 |
30 |
30 |
30 |
Editorial Group
Liu Chuanjun liuchuanjun@C1energy.biz; Liu Wenya liuwenya@C1energy.biz;
Ma Jiaying dorama@C1energy.biz; Tang Jingyu tangjingyu@C1energy.biz;
Yang Yuan yangyuan@C1energy.biz;
Publishing Period
Daily, each working day (Saturdays and Sundays excluded)
Daily Price Assessments on China’s Fuel Oil Market
International Market
FOB Singapore price for mixed/cracked 180CST high sulfur fuel oil (Trading volume: 60,000-80,000mt)
FOB Singapore premium/discount for mixed/cracked 180CST high sulfur fuel oil (Trading volume: 60,000-80,000mt)
Singapore front-month swaps for mixed/cracked 180CST high sulfur fuel oil (Trading volume: 5,000mt)
Singapore forward month swaps for mixed/cracked 180CST high sulfur fuel oil (Trading volume: 5,000mt)
FOB South Korea price for mixed/cracked 180CST high sulfur fuel oil (Trading volume: 30,000-40,000mt)
FOB Middle East price for mixed/cracked 180CST high sulfur fuel oil (Trading volume: 70,000-80,000mt)
FOB Hong Kong price for mixed/cracked 180CST high sulfur fuel oil (Trading volume: 30,000-40,000mt)
CFR South China price for mixed/cracked 180CST high sulfur fuel oil (Trading volume: 70,000-80,000mt)
CFR South China premium/discount for mixed/cracked 180CST high sulfur fuel oil (Trading volume: 70,000-80,000mt)
CFR East China price for mixed/cracked 180CST high sulfur fuel oil (Trading volume: 30,000-40,000mt)
CFR East China premium/discount for mixed/cracked 180CST high sulfur fuel oil (Trading volume: 30,000-40,000mt)
FOB Hong Kong price for mixed/cracked 380CST high sulfur fuel oil (Trading volume: 30,000-40,000mt)
CFR South China price for straight-run 180CST high sulfur fuel oil (Trading volume: 30,000-80,000mt)
CFR South China premium/discount for straight-run 180CST high sulfur fuel oil (Trading volume: 30,000-80,000mt)
CFR East China price for straight-run 180CST high sulfur fuel oil (Trading volume: 30,000-40,000mt)
CFR East China premium/discount for straight-run 180CST high sulfur fuel oil (Trading volume: 30,000-40,000mt)
CFR South China price for straight-run 280CST high sulfur fuel oil (Trading volume: 70,000-80,000mt)
CFR South China premium/discount for straight-run 280CST high sulfur fuel oil (Trading volume: 70,000-80,000mt)
CFR South China price for 180CST medium sulfur fuel oil (Trading volume: 30,000-50,000mt)
CFR South China premium/discount for 180CST medium sulfur fuel oil (Trading volume: 30,000-50,000mt)
CFR East China price for 180CST medium sulfur fuel oil (Trading volume: 30,000-50,000mt)
CFR East China premium/discount for 180CST medium sulfur fuel oil (Trading volume: 30,000-50,000mt)
Domestic Market
China Average price for mixed/cracked 180CST high sulfur fuel oil (Trading volume: 500-5,000mt)
South China ex-terminal barge price for mixed/cracked 180CST high sulfur fuel oil (Trading volume: 1,000-5,000mt)
Front-month South China MOCHA (Mean of C1 Huangpu Assessments) related swaps price for mixed/cracked 180CST high sulfur fuel oil (Trading volume: 1,000-5,000mt)
Forward month South China MOCHA (Mean of C1 Huangpu Assessments) related swaps price for mixed/cracked 180CST high sulfur fuel oil (Trading volume: 1,000-5,000mt)
Huangpu ship-to-ship transfer price for mixed/cracked 180CST high sulfur fuel oil (Trading volume: 1,000-5,000mt)
Zhanjiang ex-terminal barge price for mixed/cracked 180CST high sulfur fuel oil (Trading volume: 1,000-5,000mt)
Huangpu ship-to-ship transfer price for straight-run 180CST high sulfur fuel oil (Trading volume: 1,000-5,000mt)
Huangpu ex-terminal barge price for straight-run 280CST high sulfur fuel oil (Trading volume: 1,000-5,000mt)
Huangpu barge price for 180CST medium sulfur fuel oil (Trading volume: 1,000-5,000mt)
Huangpu ex-terminal barge price for high sulfur residue (Trading volume: 1,000-5,000mt)
Dalian ex-terminal barge price for mixed/cracked 180CST high sulfur fuel oil (Trading volume: 1,000-5,000mt)
East China ex-terminal barge price for mixed/cracked 180CST high sulfur fuel oil (Trading volume: 500-1,000mt)
Shanghai ex-terminal barge price for mixed/cracked 180CST high sulfur fuel oil (Trading volume: 500-1,000mt)
Ningbo/Zhoushan ex-terminal barge price for mixed/cracked 180CST high sulfur fuel oil (Trading volume: 500-1,000mt)
Nantong ex-terminal barge price for mixed/cracked 180CST high sulfur fuel oil (Trading volume: 500-1,000mt)
Qingdao ex-terminal truck price for straight-run 180CST high sulfur fuel oil (Trading volume: 5,000-20,000mt)
East China ex-terminal barge price for 180CST medium sulfur fuel oil (Trading volume: 5,000-20,000mt)
East China ex-terminal price for domestic high sulfur low viscosity No. 250 blended fuel oil (Trading volume: 1,000-5,000mt)
Shandong ex-terminal truck price for high sulfur residue (Trading volume: 1,000-5,000mt)
Assessment Principles
Timing:
C1 assesses the markets based on the Market On Close, or MOC, system, in which the assessment reflects the most possible tradable value or value range of the market as of the close of the trading day, under certain principles. C1 selects 16:30 Beijing time as the MOC.
Assessments are based on information provided by market players, including refineries, users, traders and third party service providers.
Specifications: see tables above Fuel Oil Specifications
Delivery: for international market, within 15-30 calendar days after reporting date; for domestic market, within 3-12 calendar days after the reporting date.
Payment term: 90 days after bill of lading on Letter of Credit (international markets), cash (domestic markets)
Delivery volume: see details in Daily Price Assessments on China’s Fuel Oil Market
General principles:
C1’s assessments are based on a wide variety of information collected from the markets. Sources of the information include producers, traders, end-users as well as independent service providers to buyers or sellers. Information is collected through telephone, short message, email, instant messenger and face-to-face discussions etc.
C1’s assessments not only reflect price of deals done but also consider bids and offers. C1 primarily considers prices of deals meeting its assessment principles. In absence of transactions or transaction meeting C1’s assessment principles, the range of the assessment is below or equivalent to the spread between the highest bid and the lowest offer.
Both fixed-price deals and floating-price deals are considered in assessments.
In any of the following cases, C1 has the right not to consider deals involved in its information sources of assessments:
- The deal is done in aberration, for example, the seller is in danger of bankruptcy and in fire- sale.
- The deal is considered done under extraordinary conditions, such as for compensation or second settlement etc.
- The deal is widely considered unrepresentative.
Generally, C1 gives special notes in its reports if a deal is not considered in market assessments, but it’s not that all deals excluded in assessments are given notes.
C1’s reports can mention deals confirmed by either side of the deal or any other credible market participants, or deals officially reported and under negotiation between the buyer and seller but not confirmed by any other parties, or deals only rumored and spread among third parties but not confirmed by the buyer or seller.
Taxes
Import/Export Tariffs Rates:
| Tax Code | Product | Most-Favored-Nation (MFN) Import Tariff Rates | Import Tax Rate for 2009 | Export Tax Rate |
| 27101922 | No. 5-7 fuel oil | 6% |
1% |
0% |
| 2710192910 | Wax oil | 6% |
0% |
0% |
| 2710192920 | Heavy gasoil | 6% |
- |
0% |
| 2710192990 | Other gasoils and fuel oils | 6% |
- |
0% |