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Chinese state supplier China Marine Bunker Supply Company (Chimbusco) has said that it is upbeat about the growth potential of 500-centistoke (cst) sales in South China.

Local branch Chimbusco Shenzhen began supplying 500-cst in the second half of this year, becoming the second company to supply the fuel grade, after Brightoil.

Speaking to a local news service, an unnamed company representative is quoted as saying: "We are optimistic about the potential demand for 500-cst bonded bunker fuel oil in Shenzhen as quite a few large container ships choose 500-cst fuel oil to lower costs.”

Chimbusco Shenzhen is understood to source its 500-cst product from Guishan oil tank farm in Zhuhai, a city on the southern coast of Guangdong province.

Sales of 500-cst are currently estimated to make up around 20 percent of total bunker demand in Shenzhen, but with fuel costs accounting for an increasingly larger share of total operation costs, it is thought that sales of 500-cst versus higher-priced 380-cst could increase as owners try to cut costs.

Provided the 20 percent estimate is correct, it perhaps should be worth noting that in Singapore - the world's largest bunker market and a port that has been selling 500-cst for several years - volumes of 500-cst account for only 13 - 13.5 percent of total sales.

Sales of 500-cst in Singapore during the month of July were 476,600 tonnes against total sales of 3,642,900 tonnes.