China’s Ministry of Commerce has expressed support for the blending of domestically produced biodiesel with marine fuel oil within Chinese comprehensive bonded zones, as part of an announcement aimed at expanding green trade. However, biobunker market participants said Nov. 3 that the implementation of this policy will require additional time.

According to an Oct. 30 announcement, China aims to extend support for the blending of domestically produced biodiesel and marine fuel oil within comprehensive bonded zones. Additionally, the country has encouraged qualified regions to provide bonded bunkering services — including liquefied natural gas, biodiesel, green alcohol and green ammonia — for international vessels.

The announcement did not specify a timeline for implementing the marine biodiesel blending policy.

“That document is simply a general outline, lacking specific implementation details,” a Chinese biobunker trader said. Actual implementation of biodiesel and marine fuel oil blending remains a long-term prospect due to various challenges, such as complications in storage and customs processes, with blending restricted to comprehensive bonded zones, according to the trader.

A biobunker supplier based in China said the use of domestically produced biodiesel may also necessitate the establishment of export quotas for Chinese biodiesel, which could potentially prolong the implementation timeline of the blending policy.

“Without any specific details now, it will likely take some time before concrete measures are implemented at the local government and customs levels,” the supplier said.

Market optimism

Despite lingering uncertainties, the ministry’s announcement has sparked optimism among market participants that a biobunker policy in China could be implemented in the near future.

“Hopefully, by the latest, after Lunar New Year next year,” the trader said. “Various local governments consider the ‘green economy’ a priority.”

Rising interest from shipping companies in lifting biobunkers at Chinese ports has led to an increase in China’s biobunker volumes in 2025.

From January to October, China supplied about 130,000-140,000 metric tons of biobunkers — mainly blends containing 24% biodiesel with conventional fuel oil — at mainland Chinese ports, according to two traders based in Hong Kong.

Including deliveries at the port of Hong Kong, the total supply could potentially reach 350,000 mt year-to-date, one of the traders said.

However, spot demand for Chinese biobunkers remains significantly lower than that of Singapore, the world’s largest bunkering port, due to the relatively higher cost of supplying biobunkers in China. In the absence of a formal blending policy, blended products are often sourced from Singapore and Hong Kong for delivery, according to trade sources.

Offer indications for the Zhoushan-delivered B24 low-sulfur fuel oil grade were reported at a premium of $240-$250/mt over the Platts benchmark FOB Singapore marine fuel 0.5%S cargo assessment on Nov. 3, according to trade sources, representing a premium of about $20/mt or more to the same grade delivered in Singapore.

“Even if China puts out a biobunker policy, it would not be very meaningful if the biobunker price is still higher than Singapore,” the trader said.

Platts, part of S&P Global Commodity Insights, assessed Singapore-delivered B24 and B30 low-sulfur biobunkers at $664.08/mt and $716.08/mt, respectively, on Nov. 3, reflecting premiums of $208/mt and $260/mt over the Platts benchmark FOB Singapore marine fuel 0.5%S cargo assessment.

Platts assessed Singapore-delivered B24 and B30 high-sulfur biobunkers at $600.02/mt and $655.02/mt, respectively, on Nov. 3, representing premiums of $227/mt and $282/mt over the FOB Singapore 380 CST 3.5%S fuel oil cargo assessment.

Source: Platts