Improved supply has contributed to bring Port Klang’s VLSFO price down to rare discounts to Singapore and other ports in the region.

PHOTO: A general view of shipping containers at Westport in Port Klang. Getty Images

Port Klang has been pricing VLSFO competitively compared to other regional bunker hubs. The port’s VLSFO price has come down by $50/mt from peak levels of $684/mt on 17 February, to about $634/mt now. Over the same period, VLSFO prices have declined by $17/mt in Singapore and by $26/mt in Zhoushan.

Port Klang’s VLSFO is currently priced about $4/mt cheaper compared to Singapore and Zhoushan’s VLSFO prices. Its VLSFO discount to Jakarta is even wider at $20/mt.

According to ENGINE data, one 500-1,500 mt VLSFO stem was fixed at $635/mt in Port Klang earlier today, while two VLSFO stems in Singapore were fixed at $647/mt.

VLSFO availability has been good in Port Klang, two sources tell ENGINE. Some suppliers can even offer the grade for very prompt dates in the Malaysian port.

Meanwhile, VLSFO availability has been tight for very prompt dates (0-3 days) in Singapore. Some suppliers can still supply the grade for very prompt dates, but these are usually priced about $20-25/mt higher compared to offers for dates further out.  

By Nithin Chandran and Tuhin Roy

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