VLSFO availability improves in Singapore

Several East Asian ports brace for Typhoon Podul

VLSFO and LSMGO availability tight in several Indian ports

IMAGE: Tanker at Ulsan harbour in South Korea. Getty Images



Singapore and Malaysia

VLSFO availability in Singapore has improved, with most suppliers now recommending lead times of 4–11 days, compared to last week’s wide range of up to three weeks. However, a source noted that supply could tighten again in the coming days amid strong demand.

HSFO delivery times remain almost unchanged at 7–12 days, while LSMGO lead times have increased to 7–11 days from around 5–8 days last week.

Singapore’s residual fuel oil stocks have averaged 9% higher so far in August compared to July. Fuel oil imports have declined by 1.48 million bbls this month, but the drop is smaller than the 2.47 million-bbl fall in exports. Meanwhile, middle distillate stocks have slipped by 1% to 8.67 million bbls—their lowest since January last year, according to Enterprise Singapore data.

At Malaysia’s Port Klang, both VLSFO and LSMGO grades are in good supply, with immediate delivery available for smaller parcels. HSFO, however, remains tight.

East Asia

VLSFO lead times in Zhoushan have increased to 5–8 days from 4–6 days last week, as several suppliers there are struggling with low inventories and delayed replenishment cargoes.

In contrast, HSFO and LSMGO delivery times have improved to 3–5 days from the earlier range of 4–6 days.

Bunker deliveries at Zhoushan’s Tiaozhoumen and Xiazhimen outer anchorages have been suspended since the weekend due to rough weather, though operations at the more sheltered Xiushandong anchorage and the inner anchorage at Mazhi are continuing smoothly. Most suppliers remain uncertain when full bunker operations will resume, as bad weather could intensify with Typhoon Podul approaching.

The typhoon’s center was located 730 km east-southeast of Taitung County in eastern Taiwan this morning and was moving west-northwest. It is expected to reach 140 km east-southeast of Taitung by Wednesday morning before making landfall later that day and then continuing toward eastern Guangdong and southern Fujian in China, according to Taiwan’s Central Weather Administration.

In northern China, Dalian and Qingdao have good availability of both VLSFO and LSMGO. Qingdao has limited HSFO supply, while Tianjin is facing tight availability of all three fuel grades.

In Shanghai, supply remains constrained for both VLSFO and HSFO, with LSMGO availability relatively stable.

Further south, conditions vary: Fuzhou is facing tight supply of both VLSFO and LSMGO; Xiamen has sufficient VLSFO stocks but LSMGO remains limited; and Yangpu and Guangzhou continue to have restricted delivery options for both grades.

In Hong Kong, lead times for all fuel grades remain stable at around seven days, though the Hong Kong Observatory has issued a typhoon warning for Wednesday as Typhoon Podul approaches.

In Taiwan, lead times for VLSFO and LSMGO remain steady at about two days at Taichung, Hualien, Keelung and Kaohsiung.

The southern port of Kaohsiung may suspend operations on Wednesday due to the typhoon, while northern ports—Taichung, Hualien and Keelung—are expected to remain unaffected, according to a source.

In South Korea, VLSFO and HSFO availability remains strong despite rising demand, with most suppliers now advising lead times of 5–6 days, compared to last week’s range of 3–8 days. LSMGO deliveries typically require about five days, though several suppliers are reluctant to commit to smaller stems of this grade, a trader said.

In Japan, prompt VLSFO supply is still tight at major ports including Tokyo, Chiba, Yokohama, Kawasaki, Osaka, Kobe, Sakai, Mizushima, Nagoya and Yokkaichi. LSMGO stocks are generally sufficient nationwide, but deliveries for prompt orders can be delayed at Mizushima. HSFO supply is stable at most locations but Oita is facing tight supply of all three fuel grades—VLSFO, LSMGO and HSFO.

Oceania

In Western Australia, VLSFO and LSMGO are in good supply at Kwinana, Fremantle and Port Kembla, with most suppliers recommending lead times of 7–8 days. In New South Wales, LSMGO availability is stable in Sydney, while prompt HSFO deliveries remain challenging.

In Victoria, Melbourne and Geelong have strong stocks of both VLSFO and LSMGO, while HSFO availability is limited, especially for prompt orders. Further north in Queensland, Brisbane and Gladstone report healthy VLSFO and LSMGO supplies with average lead times of about seven days, but Brisbane continues to face HSFO constraints.

In New Zealand, VLSFO supply is sufficient at both Tauranga and Auckland, ensuring stable availability across the two ports.

South Asia

VLSFO supply remains tight at several Indian ports—Mundra, Kandla, Mumbai, Chennai, Visakhapatnam, Cochin and Haldia—continuing the shortages seen in recent weeks. LSMGO availability is limited at most ports, with deliveries handled only on an enquiry basis. One supplier in Tuticorin is nearly out of stocks for both grades, as has been the case for the past few months.

In Sri Lanka, a supplier operating at both Colombo and Hambantota is advising lead times of about five days for all fuel grades, largely unchanged from last week.

Middle East

Fujairah continues to face tight prompt bunker availability across all fuel grades, despite subdued demand. Lead times remain unchanged at 5–7 days, though some suppliers can still meet prompt orders—typically at premium rates. Similar conditions are reported at the nearby Khor Fakkan port.

In Iraq’s Basrah, VLSFO and LSMGO grades are readily available, but HSFO remains in short supply. In Saudi Arabia’s Jeddah, availability of both VLSFO and LSMGO is still constrained.

Stocks of VLSFO, LSMGO and HSFO are nearly depleted at Suez port in Egypt.

In Qatar’s Ras Laffan, supply remains tight for both VLSFO and LSMGO grades. Djibouti is experiencing severe shortages, with VLSFO and HSFO almost out of stock. LSMGO availability is also limited.

In contrast, Omani ports including Sohar, Salalah, Muscat and Duqm continue to have stable LSMGO supplies.

By Tuhin Roy

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