VLSFO and LSMGO availability tightens in Zhoushan

Prompt HSFO supply tight across several Japanese ports

LSMGO supply good across Omani ports

IMAGE: Asyad Terminal in Duqm. Asyad Terminal


Singapore and Malaysia

In Singapore, VLSFO lead times remain steady at 6–10 days, showing little change from last week. LSMGO is widely available, with most suppliers quoting lead times of 2–5 days—also virtually unchanged. HSFO continues to require 6–10 days of lead time, similar to last week.

According to the latest data from Enterprise Singapore, the port’s residual fuel oil stocks have averaged 11% higher so far in June compared to May. Fuel oil imports have risen by 4%, increasing by 173,000 bbls this month. This growth has significantly outpaced the 48,000-bbl rise in exports, leading to a net stock buildup. The port’s middle distillate stocks have also averaged 11% higher in June than in May.

At Port Klang in Malaysia, VLSFO and LSMGO remain easily available, with prompt delivery available for smaller volumes. However, HSFO supply continues to be tight.

East Asia

In Zhoushan, VLSFO supply has tightened as several suppliers face low stock levels and delayed replenishment cargoes, a source said. As a result, VLSFO lead times have risen from 4–7 days last week to around 10 days now. LSMGO lead times have also increased significantly, jumping from 2–3 days to about 10 days. In contrast, HSFO lead times have improved, shortening from 4–7 days to 3–5 days.

In northern China, Dalian and Qingdao continue to see good availability of both VLSFO and LSMGO, though HSFO remains limited in Qingdao. Supply remains tight for VLSFO and HSFO in Tianjin, while LSMGO is readily available. In Shanghai, VLSFO and HSFO supplies are under pressure, but LSMGO is well-stocked.

Further south, Fuzhou has strong inventories of both VLSFO and LSMGO. Xiamen has adequate VLSFO supply, though LSMGO remains tight. Prompt deliveries of both VLSFO and LSMGO remain difficult in Yangpu and Guangzhou.

In Hong Kong, lead times for all fuel grades are steady at seven days. Meanwhile, in Taiwan, lead times for VLSFO and LSMGO are about three days in Taichung and Kaohsiung and remain stable at around two days in Hualien and Keelung.

Lead times for all fuel grades across several South Korean ports have increased to 5–10 days, up from the 5–7 days recommended last week.

Bunker operations in Ulsan, Onsan, and Busan are likely to be impacted by adverse weather between 20–23 June. Similarly, Daesan and Taean may experience disruptions from 20–22 June, while Yeosu is expected to face weather-related challenges between 21–23 June.

VLSFO supply remains strong in key Japanese ports like Tokyo, Chiba, Yokohama, and Kawasaki. However, prompt availability is limited in Osaka, Kobe, Sakai, and Mizushima, and remains particularly tight in Nagoya and Yokkaichi.

LSMGO is generally available, though securing prompt deliveries is challenging in Osaka, Kobe, Sakai, Nagoya, Yokkaichi, and Mizushima. HSFO supply is stable overall, but prompt deliveries remain constrained in these same ports. In Oita, availability of all fuel grades continues to be tight.

Adverse weather is forecast to disrupt bunker deliveries at Thailand’s Koh Sichang and Laem Chabang ports on 22–23 June. In Vietnam, rough conditions are expected to affect bunker operations in Hai Phong between 18–20 June.

Oceania

In Western Australia, VLSFO and LSMGO are readily available at Kwinana, Fremantle, and Port Kembla, with suppliers advising lead times of 7–8 days. In New South Wales, LSMGO is steadily supplied in Sydney, but prompt HSFO deliveries remain challenging.

Victoria’s ports—Melbourne and Geelong—have good availability of both VLSFO and LSMGO, though HSFO remains limited, particularly for prompt supply. In Queensland, VLSFO and LSMGO stocks are good in Brisbane and Gladstone, with lead times of around seven days recommended. However, HSFO remains tight in Brisbane.

In New Zealand, VLSFO is adequately available in Tauranga and Auckland, but bunker operations at Tauranga may be disrupted by adverse weather forecast for 17 and 20 June.

South Asia

VLSFO supply remains tight across several Indian ports, including Mundra, Kandla, Mumbai, Tuticorin, Chennai, Visakhapatnam, Cochin, and Haldia—continuing the trend observed in recent weeks. In Paradip, one supplier is nearing a stockout. LSMGO availability at most Indian ports remains subject to enquiry.

Adverse weather is expected to impact bunker operations at Sikka between 18–23 June, Kandla from 18–21 June, and Mumbai from 17–23 June.

In Sri Lanka, lead times for all fuel grades at Colombo and Hambantota have shortened to around two days, down from about four days last week.

Middle East

Prompt bunker availability remains tight in Fujairah, with lead times for all fuel grades steady at 5–7 days—similar to conditions in Khor Fakkan. In Iraq’s Basrah, VLSFO and LSMGO are readily available, but HSFO supply remains limited.

In Jeddah, Saudi Arabia, availability of both LSMGO and VLSFO continues to be constrained. At Egypt’s Suez port, stocks of all three conventional bunker grades are nearly depleted. Qatar’s Ras Laffan is also facing tight supply of VLSFO and LSMGO.

Bunker availability in Djibouti is under significant strain, with VLSFO and HSFO nearly out of stock and limited LSMGO. In contrast, Omani ports—including Sohar, Salalah, Muscat, and Duqm—continue to offer stable LSMGO supply.

By Tuhin Roy

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