Zhoushan's oil storage capacity utilization at 44% in May
11th May 2022 08:36 GMT

Zhoushan’s tank ullages, with oil tankage utilization in early May amounting to 44% and 5.04 million cu m available for leasing out of an overall 8.99 million cu m capacity, according to the latest initial release of storage data on Zhejiang Mercantile Exchange’s website, are expected to remain healthy for the rest of May, Zhoushan-based traders said May 11.

This comes as fewer suppliers are willing to stockpile physical cargoes owing to volatility in crude oil prices, traders added.

The data collected in collaboration with Zhoushan Harbor Administration, Zhoushan Port Association, and ZME is publicly available only on ZME's website

The storage capacities refer only to tankages for commercial use and exclude government-owned tanks for strategic petroleum reserves.

Information on tank capacities was most recently published in early May to supplement the pre-existing storage pricing data amid efforts to make inventory data easily accessible to owners of oil cargoes and efficiently bridge communications with tank storage companies, according to the latest press release on Zhoushan Harbor Administration’s website.

The storage data covers 10 tank storage companies across six oil products, such as crude oil, low sulfur fuel oil, gasoil, diesel, jet fuel, and naphtha, data on ZME’s website showed.

The press release also stated that a monthly data update will be released on the first business day of every month and published on ZME’s website.

The synergy among market participants provides Zhoushan’s tank storage companies with an opportunity to enhance branding and stay competitive to develop a robust network of storage and transportation for commodities in the Zhejiang free trade zone, according to the press release.

“There is plenty of ullage at this moment, so buyers can secure tankages quite easily,” a source from ZME said May 11.

Market participants polled by S&P Global Commodity Insights welcomed the recent move by the coalition to publish storage capacities, and pricing details are steps toward transparency in the upstream markets, serving as guidance for commercial decisions.

“This [implementation] improves price transparency and is aimed at encouraging storage uptake at Zhoushan. Most of the tankages are available now,” a Zhoushan-based trader said May 11.

Platts ,
11th May 2022 08:36 GMT