VLSFO supply improves in Zhoushan as replenishment cargoes arrive
All grades are tight for prompt dates in Singapore
Prompt VLSFO and LSMGO mostly available in Mumbai
Singapore
Securing VLSFO and HSFO for prompt dates in Singapore remains tight. Recommended lead times for VLSFO is around 11-13 days, 9-11 days for HSFO, and shorter 7-9 days for LSMGO.
The grades are likely to remain tight in the coming weeks as some suppliers are booked through the first few days in September.
Several suppliers can offer VLSFO deliveries from 9 September onwards, a trader says. Prompt VLSFO deliveries are typically priced $15-20/mt higher than dates further out.
Singapore’s residual fuel oil inventories increased by 13% in the week to 26 August but have still averaged 7% lower so far this month than in July, according to Enterprise Singapore.
More VLSFO and LSMGO were fixed in the recent week, while HSFO fixtures remain sparse.
East Asia
VLSFO availability has slightly improved in Zhoushan as some suppliers have received resupply cargos, sources say.
Recommended lead times for VLSFO is about 7-8 days, while LSMGO is readily available for prompt dates.
HSFO availability in Zhoushan remains tight and supply dates are mostly subject to enquiry as only one supplier is able to offer the grade, sources say.
Bunker fuel availability remains normal in Hong Kong and recommended lead times are about 4-5 days across all grades.
Availability is tight across all grades in southern and western South Korean ports. VLSFO, HSFO and LSMGO lead times are currently 12-13 days. Sources expect availability to improve from 12 September onwards.
Bunker demand remains sluggish in the Philippines’ Manila amid relatively higher bunker prices.
LSMGO availability is normal. A supplier can offer deliveries for prompt dates.
South Asia
HSFO, VLSFO and LSMGO availability is normal in India’s Mumbai. A supplier can offer prompt deliveries.
VLSFO and HSFO supply is normal in Mundra on India’s northwest coast and requires lead times of 4- 5 days. VLSFO deliveries in Kandla requires 2-3 days of lead time.
Meanwhile, VLSFO supply is almost out of stock in India’s southern coast Cochin and Tuticorin, while VLSFO supply is relatively better in Chennai and some suppliers can offer deliveries for prompt dates.
VLSFO supply is almost out of stock in Visakhapatnam, Haldia, Paradip and Kakinada on India’s east coast.
A supplier expects replenishment stocks to arrive in Visakhapatnam by mid-September, while another supplier can offer limited quantities of VLSFO but are typically priced a premium
HSFO avails are mostly subject to enquiry across all the Indian hubs.
VLSFO and LSMGO availability is normal in Colombo and Trincomalee. A supplier can offer deliveries for prompt dates if weather permits, while others require lead times of four days.
Some suppliers struggle to deliver stems at the port’s outer port limit (OPL) amid rough weather conditions.
Strong wind gusts of 18-26 knots are forecast in Colombo from Thursday and until Friday. Winds at the higher end of that range could pose problems to bunker deliveries by barge.
Middle East
VLSFO and LSMGO lead times in Fujairah are about 7-8 days, while HSFO has longer lead time of 9-10 days. Some suppliers in Fujairah can offer VLSFO for prompt dates but supply dates are subject to enquiry, sources say.
VLSFO and LSMGO avails are normal in Sohar. A supplier can offer LSMGO for prompt dates in Sohar and Duqm.
VLSFO and LSMGO availability is normal in Iraq’s Basra. A supplier can offer deliveries for prompt dates.
VLSFO supply is good in Saudi Arabia’s Yanbu. A supplier can offer deliveries for 2 September.
Source: ENGINE By Tuhin Roy and Nithin Chandran