Bunker demand improving in Singapore

Availability good in Zhoushan

Prompt availability tight in Fujairah

PHOTO: Dense rows of vessels on the waters of Singapore. Getty Images

Singapore

Bunker demand in Singapore has shown signs of improvement so far this week, a source says. Prompt availability of both VLSFO and HSFO remains tight in Singapore, with most suppliers recommending unchanged lead times of 8-11 days and 7-9 days.

LSMGO remains more readily available in the port, with short lead times of 2-4 days.

Several suppliers in Singapore are actively competing with each other by offering bunker grades at competitive prices, the source adds.

Singapore’s residual fuel oil stocks have averaged 8% lower so far in September compared to August, according to Enterprise Singapore. The port’s net fuel oil imports have fallen by 6% so far this month. Both fuel oil imports and exports have declined this month. Singapore’s fuel oil imports have dropped 5% so far this month, while its exports have dipped 1%.

On the other hand, Singapore’s middle distillate stocks have averaged 14% higher so far in September than across August.

East Asia and Oceania

Improved barge availability and low bunker demand have contributed to boost prompt availability for all grades in Zhoushan, a source says. Some suppliers, that were offering all grades at lead times of 4-7 days at the end of last week, are now advising shorter lead times of 3-5 days.

Bunker demand in Hong Kong has been sluggish as the bunker prices at the port have been higher compared to Singapore. As a result, vessels there are opting to make bunker calls in Singapore instead, a source says. Most suppliers are advising lead time of 5-7 days – virtually unchanged from last week.

Meanwhile, recommended lead times vary widely between 3-14 days for all grades in South Korean ports. Some suppliers were offering all grades at lead times of 7-13 days last week. Bunker demand is “not too bad” in South Korean ports, a source says.

Rough weather conditions are forecast in the South Korean ports of Ulsan, Onsan, Busan and Yeosu between 15-17 September, and in Daesan and Taean between 15-16 September, which might hamper bunker deliveries at these ports.

Adverse weather conditions are also predicted in the Vietnamese port of Ho Chi Minh between 15-16 September, and in the Kiwi port of Tauranga on 14-15 September and on 18 September, which may disrupt bunker operations.

South Asia

VLSFO and LSMGO can be delivered with around 2-3 days of lead time in several Indian ports, including Kandla on the northwest coast and Cochin and Chennai on the southern coast.

Both grades remain relatively tighter in Mumbai and Visakhapatnam, where deliveries are subject to availability. Meanwhile, supply of both grades remains subject to enquiry in Tuticorin port located on the southeast coast and Haldia on the east coast as it has been in recent weeks, a source says.

Middle East

In Fujairah, prompt availability remains “super tight” for all bunker fuel grades amid good demand. Lead times for all grades remain unchanged at 5-7 days, but some suppliers can offer prompt supply depending on stem sizes, a source says.

Lead times of 5-7 days are also advised across all fuel grades in another UAE port of Khor Fakkan - unchanged over the last couple of weeks.

By Tuhin Roy

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