Singapore
VLSFO availability remains very tight in Singapore despite average demand so far this week. At least seven suppliers are struggling to meet delivery schedules, adding to supply pressure there. Lead times of up to two weeks are recommended for the grade.
Similarly, HSFO availability has tightened, with lead times approaching two weeks now.
LSMGO remains readily available in Singapore, with short lead times of 3-5 days.
Singapore’s residual fuel oil stocks have averaged 9% higher so far in January than across December, according to Enterprise Singapore. The port’s net fuel oil imports have climbed by 73% this month, with both imports and exports witnessing an uptick. Fuel oil imports have risen by 3.42 million bbls, outpacing fuel oil exports by 644,000 bbls, which has contributed to the stock build.
In contrast, middle distillate stocks in the port have seen a decline, averaging 15% lower this month.
China and East Asia
In Zhoushan, VLSFO availability has improved significantly. Lead times for the grade have come down from last week’s seven days, to just 3-5 days now. However, adverse weather conditions have disrupted bunkering in Zhoushan since Saturday. Bunkering is expected to resume fully on Thursday, when calmer weather conditions are forecast.
VLSFO and LSMGO supply tightness persists in Dalian. Availability is tight at nearby Tianjin, where deliveries are subject to enquiry. Qingdao is experiencing tight prompt availability for VLSFO and LSMGO, with HSFO deliveries subject to firm inquiry.
Southern Chinese ports of Shanghai, Xiamen and Guangzhou are grappling with tight availability for VLSFO and LSMGO, while Shanghai faces constraints in HSFO supply. Both grades are subject to enquiry in Fuzhou, while supply is relatively better in Yangpu.
Meanwhile, Hong Kong contends with supply shortages amid high bunker demand, pushing lead times to nearly two weeks. Port Klang in Malaysia has tight VLSFO and LSMGO availability, with recommended lead times of around 13 days, while some suppliers are almost out of HSFO stocks.
South Korean ports are facing product supply shortages despite sluggish demand. Several suppliers are recommending lead times of 6-9 days for all grades – virtually unchanged from last week. Additionally, bunker operations in several South Korean ports, including Ulsan, Onsan, Busan, Daesan, Taean, and Yeosu, may face intermittent disruptions for the remaining days of this week due to anticipated high winds and waves, potentially impacting bunkering.
In Japan, varying lead times are advised across key ports. Suppliers in Tokyo, Chiba, Osaka and Kobe recommend approximately nine days of lead times, and longer lead times of 11 days in Oita. Some suppliers are still offering stems for delivery dates this month, but these are typically priced higher. Harsh winter conditions have prompted Japanese refineries to redirect their supply towards heating demand, resulting in reduced availability for bunkers. Nagoya, Yokkaichi, and Mizushima report tight availability across all grades.
Subic Bay in the Philippines anticipates difficult bunkering conditions between 24-29 January. Similarly, the Thai ports of Koh Sichang and Leam Chabang expect adverse weather on 24-25 January, potentially impacting bunker operations in these regions.
South Asia
Located on India’s northwest coast, Kandla currently has ample availability of VLSFO and LSMGO. On the other hand, several other Indian ports, including Mumbai, Cochin and Chennai, are contending with supply tightness for both grades.
Some suppliers in Visakhapatnam, Paradip and Haldia have nearly exhausted their VLSFO and LSMGO stocks, a source says.
Middle East
The ongoing attacks on commercial ships in the Red Sea have led shipping companies to divert vessels around Africa instead of using the shorter Suez Canal route. The shift in shipping routes to some extent has affected bunker demand in Fujairah.
Demand has declined in Fujairah this week, after a period of strong demand in previous weeks. Prompt availability is tight for all grades in the port. Lead times of 7-10 days are recommended for all grades, unchanged from the previous week. The UAE port of Khor Fakkan presents a similar supply scenario with lead times of 7-10 days across all grades.
Omani ports including Sohar, Salalah, Duqm and Muscat have prompt supply of LSMGO.
Source: ENGINE, By Tuhin Roy, https://engine.online/news