Environmental protection regulations are becoming increasingly strict, and the demand structure of the fuel oil market has changed.

Fuel oil is a type of refined oil. It is a product based on a mixture of various residual oils, diesel oil, etc. produced in the crude oil processing process. Fuel oil has the characteristics of high viscosity and high colloid/asphaltene content. There are many factors to control the quality of fuel oil products, including processing technology, processing depth, crude oil type, etc. According to different processing techniques, fuel oil can be divided into four categories: normal pressure heavy oil, vacuum heavy oil, catalytic heavy oil, and mixed heavy oil.

Fuel oil has a wide range of applications, covering transportation, aerospace, shipbuilding, steel smelting, electric power, construction and building materials, chemical industry and other fields. According to the “2022-2026 China Fuel Oil Industry Market In-depth Research and Development Trend Forecast Research Report released by the Industrial Research Center, From 2018 to 2021, thanks to the release of downstream market demand, the output of my country’s fuel oil industry showed a steady growth trend. According to data from the National Bureau of Statistics, in 2021, the output of my country’s fuel oil industry accumulated 43.502 million tons, a year-on-year increase of 22.1%.

At present, my country’s fuel oil market is in a stage of rapid development, and market demand and apparent consumption have maintained steady growth. In 2021, fuel oil market demand will increase to 36.864 million tons, and apparent consumption will increase to 37.456 million tons. East China is the main fuel oil producing area in my country, accounting for more than 50% of the output, followed by the central and southern regions, accounting for about 20% of the output, and the third is the northwest region. Looking at provinces and cities, Shandong, Guangdong, Liaoning, and Zhejiang , Jiangsu is one of the top five producers of fuel oil in my country.

From the perspective of the import and export market, my country’s fuel oil market is well supplied, the scale of fuel oil imports has fluctuated and declined, and the export scale has shown an overall growth trend. According to data from the General Administration of Customs of China, in 2021, my country’s fuel oil imports will be 13.824 million tons. A year-on-year increase of 9.5%; export volume was 19.625 million tons, a year-on-year increase of 23.8%. In terms of import and export countries, domestic fuel oil is mainly exported to Hong Kong, Panama, Liberia and other regions, while imported fuel oil comes from Malaysia, Singapore, Russia and other regions.

There are many fuel oil production companies in my country, including PetroChina, Sinopec, CNOOC and other companies. In 2020, the International Maritime Organization requires that the sulfur content of global ship fuel oil shall not exceed 0.5%. In order to comply with this trend, my country’s fuel oil companies have successively launched large-scale production of low-sulfur fuel oil. As of the end of 2020, more than 30 domestic refineries The plant completed the conversion of its low-sulfur ship fuel production line.

Industry analysts said that fuel oil has a wide range of applications, including electric power, steel smelting, transportation, shipping, chemical industry and other fields. Broad application requirements. In recent years, with the steady development of my country’s economy, the supply and demand of the fuel oil market has maintained a growth trend. At the same time, against the backdrop of increasing environmental protection requirements, the demand structure of the fuel oil market has undergone major changes, and the low-sulfur fuel oil market has grown rapidly.