I. Variety characteristics and classification
Generally speaking, in the process of crude oil processing, the lighter components are always separated first. As a kind of refined oil, Fuel Oil is a heavy residual product separated from crude oil after gasoline, coal and diesel oil in the process of petroleum processing. Fuel oil is mainly made of petroleum cracking residue oil and straight-run residue oil, which is characterized by high viscosity and contains many non-hydrocarbon compounds, resins and asphaltenes.
As the last product in the refining process, the quality control of traditional fuel oil products has strong particularity. The formation of final fuel oil products is restricted by many factors such as crude oil variety, processing technology and processing depth.
Fuel oil is mainly used in transportation, refining, industrial manufacturing, electric power and other industries, among which the market demand for marine oil shows a steady growth trend. As the power source of transportation, marine fuel oil is a blended oil product reprocessed on the basis of traditional fuel oil, and its quality must meet the requirements of marine internal combustion engines, otherwise it will easily cause greater safety hazards.
There are many ways to classify marine fuel oil:
1, according to the national standard GB 174 1 1, marine fuel oil is divided into distillate marine fuel and residue marine fuel.
Fractional fuel is mainly composed of light oil (diesel oil), which is divided into four types according to quality indexes such as density and cetane number, namely DMX, DMA, DMZ and DMB. Residue fuel oil is an oil product with heavy fuel oil as the main component. According to the quality and viscosity, it can be divided into seven viscosities and six quality grades, * * *1brand number, which are RMA 10, RMB30, RMD80, RME 180 and RMG/respectively.
According to the sulfur content, marine fuel oil can be divided into three grades: I, II and III, among which the corresponding standards for residual fuel oil are not more than 3.50%, 0.50% and 0. 10% respectively.
2. According to the supply target, marine fuel oil can be divided into bonded marine fuel oil and domestic marine fuel oil.
Second, the main quality indicators
The current national standard GB174115 for marine fuel oil was formulated with reference to ISO82 17 for marine fuel oil, which is a mandatory national standard. The main technical indicators are viscosity, sulfur content, hydrogen sulfide, flash point, moisture, acid value and hydrogen sulfide.
■ Viscosity. It is the most important performance index of fuel oil and the main basis for classifying fuel oil grades. It is a measure of fluidity impedance, and its size indicates the fluidity, pumpability and atomization performance of fuel oil. The unit of kinematic viscosity is mm2/s.
■ Density. The quality of oil per unit volume is called density. By measuring density and volume, oil products can be accurately measured, which is the basis of trade volume. Because the density of oil is related to its chemical composition, the variety and quality of oil can be judged according to the density.
■ Carbon Aromaticity Index (CCAI). A calculated value for evaluating the ignition performance of residual fuel oil is determined by the density and viscosity of residual fuel oil. CCAI is included in the standard to avoid that fuel oil with abnormal density-viscosity relationship may lead to prolonged ignition delay of residual fuel oil.
■ Sulfur content. The sulfur content of residue fuel depends on the sulfur content of blended component oil. According to the current situation of residue fuel oil in the domestic market and the improvement of environmental protection requirements, the sulfur content of residue fuel oil is divided into 1 grade, Il grade and IIl grade. It is the buyer's responsibility to determine the maximum sulfur content of fuel oil according to the design of marine engine, emission regulations, equipment and the existing legal restrictions in the area where fuel oil will be used.
■ Flash point. Flash point is an effective index to evaluate the fire risk of fuel oil formation.
■ Hydrogen sulfide. Hydrogen sulfide is a highly toxic gas, and it is dangerous for people to be exposed to high concentration of hydrogen sulfide gas, which is fatal in extreme cases. Hydrogen sulfide can be formed in the refining process, or it can be gradually formed in fuel oil in oil storage tanks, product barges and user tanks.
■ Acid value. High acidic fuel oil caused by acidic compounds often accelerates the destruction of marine internal combustion engines, which first occurs in fuel oil injection equipment.
■ Total sediment. The sediment in the oil will aggravate the equipment wear and nozzle blockage, and the sediment can accumulate in the storage tank, filter screen or equipment, resulting in poor oil circulation from the oil tank to the burner.
■ Carbon residue. It refers to the percentage of carbon residue formed by the evaporation and thermal cracking of oil products under specific high temperature conditions.
■ pour point. Refers to the lowest temperature at which the cooled sample can flow under the specified test conditions. The buyer shall ensure that the pour point is suitable for the requirements of the equipment on board, especially when the ship is operating in cold climate.
■ moisture. The existence of moisture will reduce the calorific value of fuel oil, and also affect the combustion performance of fuel machinery, which may cause accidents such as flameout and shutdown of furnace, so the water content in oil products should be strictly controlled.
■ Ash. It refers to the inorganic substance obtained by carbonization and calcination of fuel under specified conditions. The ash of fuel oil is deposited on the pipe wall, boiler heating surface and other equipment, which reduces the efficiency of heat exchanger.
■ vanadium. It is ubiquitous in crude oil, and organic vanadium is dissolved in crude oil, so residual fuel oil also contains vanadium. After the combustion of vanadium and sodium, compounds with low melting point are generated, which leads to serious corrosion in the furnace and high temperature corrosion.
■ sodium. Used to identify whether the salt content is increased due to the introduction of seawater during transportation, because salt will cause corrosion of equipment. When residual fuel oil is used as fuel, sodium compounds with low melting point are one of the causes of corrosion caused by deposits on the valves, nozzles and turbine blower blades of marine diesel engines.
■ aluminum+silicon. Usually, the catalyst powder remains in the residual oil. The oxides of aluminum and silicon are hard and easy to wear on combustion equipment.
■ Net calorific value. The calorific value obtained by subtracting the heat of formation of acid and its heat of solution from the heat released when the oil product is completely burned per unit weight is the total calorific value, and the calorific value obtained by subtracting the heat of vaporization of water from the total calorific value is the net calorific value.
■ Used lubricating oil (calcium plus zinc or calcium plus phosphorus). Acidic substances generated by oxidation of used lubricating oil will corrode equipment. Metal additives in lubricating oil will increase ash content, and used lubricating oil contains a certain amount of wear particles, which will aggravate equipment wear. Therefore, fuel oil should not contain used lubricating oil.
■ Compatibility (Grade). There is no problem when the oil that meets the standard index is used alone, but flocculation occurs when it meets non-similar light oil or heavy fuel oil, which is often encountered in the process of fuel oil blending, reflecting the compatibility problem of different oil products.
III. Overview of Global Fuel Oil Market
1, global production and consumption of fuel oil
The main production areas of global fuel oil are concentrated in the Middle East, South America, Russian Federation, China, etc. The global annual output is about 500 million tons, of which about 300-400 million tons are traded in the open market. The data shows that the global demand for marine oil in 20 17 years is about10.70 billion tons, of which Asia accounts for 38% of the total demand.
There are four major marine oil markets in the world, namely, Asian region (Singapore, Japan, South Korea, China, Hongkong and China), European ARA region (Amsterdam, Rotterdam and Antwerp), Mediterranean region (Fujairah) and American region (East Coast of America). The marine trade in the above areas is prosperous, the ocean shipping is prosperous and the marine oil market is very developed.
Judging from the relationship between supply and demand in different parts of the world, Europe, Russia, America and the Middle East are in a state of oversupply, while the Asia-Pacific region has a large demand gap.
Among them, Singapore is the largest marine oil market in Asia, with a consumption of about 50.64 million tons in 20 17. Relying on its superior geographical location, flexible economic policies and long-term development of the oil trading market, Singapore has attracted almost all multinational oil companies and global oil trading companies to participate in the local fuel oil market. Relatively low-quality fuel oil component resources produced in other parts of the world flow to Singapore and are sold after oil blending.
2. Development trend of global marine fuel oil market
■ The consumption of marine fuel oil is increasing year by year.
In recent years, oil prices have been rising, and refining enterprises have been upgrading their processing equipment to improve the yield of light oil and reduce the output of heavy oil. However, with the increase of global trade logistics, the demand for marine fuel oil is increasing.
■ The single refueling amount of ship refueling increases.
Usually, for ships below100,000 tons, old engines add 180 ship fuel oil; in recent years, new engines add 380 ship fuel oil, and larger ships add 380 and 500 ship fuel oil; Moreover, the single Man Cang refueling volume of ocean-going ships generally reaches 1000-6000 tons/ship, if the refueling is only 20%-30% of the full oil bunker; Large container ships (with a length of 263.23m, a width of 32.2m, a load of 52,223 tons, and a full draft depth of12.8m, which can load 5,000 standard containers at one time) and oil carriers, with 500 and 700 ships' fuel oil, the single refueling capacity can even reach more than 10,000 tons/ship.
In recent years, major shipping companies in the world have stepped up the elimination of old and high-energy-consuming ships, and the overall age of the fleet has been greatly reduced, which has also brought about changes in ship size and super-size.
■ The use trend of high viscosity fuel oil is obvious.
With the increase of international crude oil price in recent years, the price of marine fuel oil has also gone up. Marine fuel oil accounts for 50% of the cost of shipping enterprises. In fact, in order to reduce the cost, enterprises have reformed the ship engine to make it suitable for heavy fuel oil with relatively low price. At present, 180 is mainly used by some ships in coastal waters and rivers, and 380,380 fuel oil is the mainstream product for ocean-going ships. In order to further reduce the cost, some large ships began to use 500, and even 700 ships began to appear.
■ Low-sulfur fuel oil has great development space.
1In September, 1997, the International Maritime Organization (IMO) revised the International Convention for the Prevention of Pollution from Ships (MARPOL73/78), added a new annex VI: Rules for the Prevention of Air Pollution from Ships, and made strict restrictions on air pollutants such as SOx and NOx discharged by ships, and then revised it many times. At present, the International Maritime Organization has approved four "Emission Control Zones" (ECA) in the Baltic Sea, the North Sea, North America and the Caribbean Sea of the United States. In the emission control zones, the sulfur content of ship fuel oil shall not exceed the following specified concentrations: ① 1.5%, before March 20 10/day; ② 1.0%, after 20 10 March 1 day; ③ After 0. 1%, 20 15 years 1 month1day. At the 70th session of Marine Environmental Protection Committee (MEPC), the implementation date of global sulfur emission limit was decided: outside the emission control area, that is, globally, the sulfur content standard of marine oil will be adjusted from less than 3.5%m/m to less than 0.5%m/m from 2020 1 month/day.
IV. Overview of China's Fuel Oil Market
Fuel oil is a kind of petroleum and petroleum products with high degree of marketization in China at present. In the new oil pricing method promulgated by the State Planning Commission on 20001year1October 15, the price of fuel oil was officially liberalized, the circulation and price of fuel oil were completely regulated by the market, the domestic price was basically in line with the international market, and the product was highly internationalized. From 1 month 1 day in 2009, the Ministry of Finance adjusted the refined oil consumption tax policy, and the unit tax of fuel oil consumption tax was increased from 0. 1 yuan/liter to 0.8 yuan/liter, and it has been adjusted several times since then. At present, the implementation standard is 1.2 yuan/liter (combined12.
1, China's fuel oil market related policies
Import management
Fuel oil imports are subject to state-run trade management. At the same time, according to the relevant provisions of the Protocol of China's accession to the World Trade Organization, a certain amount of fuel oil imports are subject to non-state-run trade management, and enterprises that meet the qualifications of non-state-run trade are allowed to import within the annual import allowance. Since 1 month 1 day, 2004, China has abolished the import quota system of fuel oil and implemented automatic import license management. The application conditions, distribution principles and related procedures of fuel oil non-state trade import allowance in 20 18 (Announcement No.80 of Ministry of Commerce No.2017) stipulates that the fuel oil non-state trade import allowance in 20 18 is16.2 million tons. Five state-owned import enterprises, such as PetroChina, Sinopec, CNOOC, Zhuhai Zhenrong Company and Sinochem Group, have no import quantity restrictions.
Environmental policy
On August 29th, 20 15, the Law of the People's Republic of China on the Prevention and Control of Air Pollution was revised and passed, and it will take effect on August 29th 1 6 1 month1day. The revision made it clear that to prevent and control air pollution, we should strengthen the comprehensive prevention and control of air pollution such as coal burning, industry, motor vehicles and ships, dust and agriculture, implement joint prevention and control of regional air pollution, and implement coordinated control of atmospheric pollutants such as particulate matter, sulfur dioxide, nitrogen oxides, volatile organic compounds and ammonia and greenhouse gases.
20 151February 2, the Ministry of Transport issued the Implementation Plan for Ship Emission Control Zones in Pearl River Delta, Yangtze River Delta and Bohai Rim (Beijing-Tianjin-Hebei), which set up a ship air pollutant emission control zone for the first time to control the emission of sulfur oxides, nitrogen oxides and particulate matter from ships. The Plan requires that, from 20 16 years 1 month 1 day, ports with conditions in the emission control zone can implement measures higher than the current emission control requirements, including the use of fuel with sulfur content not higher than 0.5% during the berthing period. Since 20 17, the fuel with sulfur content not higher than 0.5% should be used during the berthing period in the core port area within the emission control zone (except one hour after berthing and one hour before departure). From 20 18, this requirement is extended to ships berthed in all ports in the emission control zone; From 20 19, it will be extended to all ships entering the emission control zone. Before 20 19 1 February 3 1, evaluate the implementation effect of the above control measures, and determine whether to take the following actions:1.Ships enter the emission control area to use fuel with sulfur content ≤0. 1% m/m; 2. Expand the geographical scope of the emission control area; 3. Other further initiatives. Since April, 20 16, the Yangtze River Delta region has taken the lead in reducing emissions, and the four core ports of Shanghai, Ningbo, Zhoushan, Suzhou and Nantong have implemented the first-stage measures at the same time, that is, the fuel with sulfur content ≤0.5%m/m is used during the berthing period.
On 20 15 12 15, the Ministry of Transport issued the Regulations of the People's Republic of China on the Environmental Management of Preventing and Controlling Ship Pollution in Inland Waters, which came into effect on 20 16 May/0. The Regulations further improve the standards and requirements for environmental protection of inland waters by ships and their operations.
On October 20 17 10, the Ministry of Communications and other three departments jointly issued the Guiding Opinions on Strengthening the Supply Guarantee and Joint Supervision of Marine Low-sulfur Fuel, clearly ensuring the supply of marine low-sulfur fuel through policy guidance to meet the needs of the shipping market. First, establish a basic supply system for marine low-sulfur fuel, and guide domestic refining and chemical enterprises to produce compliant marine low-sulfur fuel. The second is to speed up the revision of marine fuel standards and complete the research and revision of related standards and specifications in 20 19.
■ China (Zhejiang) Pilot Free Trade Zone Policy
On April 3, 20 17, Hangzhou Customs announced the first batch of (15) innovative measures launched by Hangzhou Customs to support the construction of China (Zhejiang) Pilot Free Trade Zone (hereinafter referred to as 15). It is a further refinement of "Several Measures of the General Administration of Customs on Supporting and Promoting the Construction and Development of China (Zhejiang) Pilot Free Trade Zone" (Article 25). One of its core tasks is to explore the facilitation of investment and trade in the whole oil industry chain, enhance the competitiveness of oil trade in the Pilot Free Trade Zone from both efficiency and cost, and promote the development of bonded fuel oil industry. It mainly includes: (1) cross-regional direct supply, and oil supply enterprises cross Zhoushan customs jurisdiction to carry out direct supply of bonded oil for international navigation vessels, including Ningbo, Nanjing and Shanghai, and Jiaxing, Wenzhou and Taizhou in the customs area. (2) Oil supply at the anchorage outside the port. Oil supply ships supply bonded oil to international navigation ships that have not yet entered the port and are anchored at the anchorage outside the port. (3) One warehouse is multi-supply, and the same public bonded warehouse stores bonded oil of several oil supply enterprises at the same time. Oil supply enterprises use public bonded warehouses to develop bonded oil supply business. (4) Supply first, then report. Enterprises engaged in the supply of bonded oil for international navigation ships adopt the mode of "supply oil first, then declare customs" to conduct business.
On August 8, 20 17, the General Administration of Customs issued the Operational Procedures for Supervision of Direct Supply of Bonded Oil across Customs Areas of the People's Republic of China, which achieved a breakthrough in the customs supervision mode of direct supply of bonded oil across customs, and clarified and unified the customs supervision operation of direct supply of bonded oil across customs in Shanghai, Nanjing, Hangzhou and Ningbo, which was conducive to in-depth communication and cooperation between the four customs and promoted the filling of bonded fuel oil in Northeast Asia.
On March 20 18, the Technical Specification for Measurement of Ship Fuel Oil Filling System, which was commissioned by the Zhoushan Port Comprehensive Insurance Zone Management Committee and formulated by China Classification Society Quality Certification Company, was officially released.
2. Production and consumption of fuel oil in China
In recent years, China's fuel oil market has developed steadily and increased. After local refining tends to deeply process crude oil, imported fuel oil has been squeezed out. However, the international shipping industry is recovering, and the free trade zone policy is constantly opening up, the bonded oil market is active, and the import and export volume of fuel oil continues to increase.
China's fuel oil consumption is mainly concentrated in four areas: transportation, refining, industry and electric power. In 20 17, the consumption of transportation and industrial manufacturing sectors continued to pick up, while the demand of refining and chemical consumption sectors continued to decrease, and the demand for electricity was still at a low point. Due to the large-scale application of environmental protection alternative energy, the consumption of industrial fuel oil, such as metallurgy and light industry, and fuel oil in power sector has been shrinking since 20 10. Although the transportation industry, such as marine oil, has been affected by the recession of international shipping industry during these seven years, the consumption of fuel oil has declined, but it has remained at a relatively stable level as a whole.
3, China's fuel oil imports
China mainly imports fuel oil products from Singapore, Malaysia, South Korea, Japan, Iran, Indonesia, Venezuela, the Netherlands, Russia and other countries. In recent years, due to the increasingly high environmental protection requirements of the European Union, the number of some high-sulfur fuel oil directly transported from Europe to China has increased. With the increasingly strict environmental protection policy, it is expected that the destination of imported fuel oil will be more inclined to the bonded oil market in the future, and enterprises will have closer ties with Southeast Asia such as Singapore after strengthening bonded and arbitrage business.
4. China's bonded marine oil market
Bonded marine oil specifically refers to bonded marine fuel oil supplied to ships operating on international routes entering and leaving China. The import and sales are exempted from import duties, import value-added tax and consumption tax, and stored in designated bonded oil depots, which are subject to bonded supervision by the customs. In 20 17 years, the consumption of marine oil in China was about 179 1 10,000 tons, up by 8.48% year-on-year. Among them, the consumption of bonded marine oil is about11110,000 tons, with a year-on-year increase of 12.68%. With the continuous opening of the free trade zone policy. Market supervision is more standardized, and China's marine oil market is picking up.
The Yangtze River Delta region is still the most concentrated area of bonded oil sales in China. There are many ports and islands in the Yangtze River Delta region, with good geographical location and convenient shipping, which has always been in a leading position in the bonded oil market. Bonded ship oil supply enterprises have set up service outlets here one after another. In 20 17, Zhejiang Free Trade Zone was established, and during the year, policies were issued to allow cross-regional operations, which supported the overall economic sales volume in this region to continue to rise. In 20 17, the sales volume of bonded oil in the Yangtze River Delta region was 6.06 million tons, and the annual sales volume increased by 22.42% compared with last year. Compared with last year, the sales volume of Bohai Rim and Pearl River Delta region has not changed much, which is 3190,000 tons and1860,000 tons respectively.
The supplier of bonded marine oil refers to the enterprise that provides bonded ship refueling service in China Bonded Port Area. Since 2006, the bonded oil for ships on international routes is a national franchise, and the Ministry of Commerce has issued five national license photos, namely, China Ship Fuel Co., Ltd., Sinopec Zhejiang Zhoushan Petroleum Company, Sinopec Changjiang Fuel Company, Sinopec China Shipping Fuel Company and Shenzhen Guanghui Petroleum Company. In order to further accelerate the development of bonded oil business for international navigation ships, Zhoushan issued the Interim Measures for the Management of Bonded Oil for International Navigation Ships in China (Zhejiang) Pilot Free Trade Zone (Zhou Zhengfa [20 17] No.32) in 20 1 7, which came into effect on June17. These Measures are applicable to the bonded oil business of international navigation vessels and related supervision and management of enterprises registered in China (Zhejiang) Pilot Free Trade Zone (hereinafter referred to as the Pilot Free Trade Zone). The operation of bonded oil for international navigation vessels as mentioned in the Measures refers to the operation of providing bonded oil for international navigation vessels within the jurisdiction of Hangzhou Customs. On June 8th, the first batch of four qualified bonded oil enterprises were approved, including Zhoushan Zheneng Petrochemical Co., Ltd., Huaxin International (Zhoushan) Petroleum Co., Ltd., CNPC Taifu Marine Fuel Co., Ltd. and Zhoushan Port Comprehensive Bonded Zone Energy Chemical Co., Ltd.. 1On October 27th, Zhoushan Port International Trading Co., Ltd. became the fifth approved enterprise. China is the largest exporter in the world with a vast territory and numerous ports. In 20 17, China's foreign trade cargo throughput was 4 billion tons, 6.3 times that of Singapore port, while the consumption of bonded marine fuel oil was only one fifth of that of Singapore. Therefore, China's marine oil market has great potential.
V spot pricing model of fuel oil
Market pricing model
The pricing standard of international fuel oil market is mainly based on the specifications of ships, and the active pricing methods are spread all over several major resource and consumption places in the world.
(1) Rotterdam: Platts Rotterdam Barges
(2) Meiwan: Platts USGC 3.0% NO.6
(3) Mediterranean: mopmed (Mean of Platts Mediterranean)
(4) Middle East: MOP AG (Mean of Platts Arab Gulf)
(5) Far East: MOPS (Mean of Platts Singapore)
At present, the pricing method of bonded marine fuel oil in China is: Singapore MOPS 380CST price+premium. Platts Singapore valuation accounts for 96-97% of the overall price, with a high proportion; The premium accounts for less than 4% of the overall price, and the quotations of various shipping companies are different. In the absence of its own pricing mechanism, China's influence on the price of marine fuel oil in Singapore is indirect and weak.
Platts Singapore's Platts pricing mechanism: the full text of "MOPS" is "Mean Of Platts Singapore". This price is usually set by Platts according to the quotation and transaction situation of paper and goods in Platts' window, and published in "Platts' Asia Pacific area Gulf Market Scan" for market reference. Platts' open market refers to the market where spot trading is conducted on Platts' open quotation system (PAGE 190) every day16: 00-130. Fuel oil is one of them.
The operation of the market is that more than a dozen market participants, including major oil companies (Shell, BP) and major traders (Glencore, Vitol, etc.), quote in the open market. The main purpose of this market is not to deliver the fuel oil, but to form a transparent market price.