Singapore — In less than a month, China is set to tighten its sulfur limit restrictions for ships by imposing a 0.5% bunker fuel sulfur limit in not only its initially designated Emission Control Areas but also along its entire coastline, a move likely to spur demand for cleaner fuels, industry sources said.

“The policy will further support demand for LSMGO,” a bunker trader with state-owned Chinese trader, Sinochem, told S&P Global Platts.

Low sulfur fuel oil demand is also set for a significant rise, thanks to the new rule, sources said.

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