East of Suez Fuel Availability Outlook

Credit: lukas-blazek-unsplash

Singapore has been witnessing average demand so far this week. Prompt availability is tight for all grades in the bunker hub. VLSFO and HSFO require lead times of 9-11 days and 7-12 days, respectively – up from 8-9 days and 6-10 days in the previous week.

East Asia

Most suppliers in Zhoushan are running low on VLSFO primarily due to tightness in domestic supply, a source says. China produced 1.07 million mt of VLSFO in April, dropping by nearly 10% from a year ago, according to data information provider JLC. Multiple factors such as lower margins, refinery maintenance and lack of blending components for VLSFO led to a drop in production, JLC says. “But the tightness of barges continues, and the tightness of barges is particularly serious, especially in Shandong ports and Zhoushan,” adds independent bunker broker Phoebe Li and Manifold Times. However, bunker operations across all anchorages in Zhoushan have been suspended since Sunday due to bad weather conditions, a source says. Bunker deliveries are likely to resume fully on 4 June, when calmer weather is forecast.

In Hong Kong, availability is tight for VLSFO and HSFO due to a spike in demand and tight barge availability, a source says. Both grades now require lead times of 7-10 days – up from last week’s 4-7 days. LSMGO availability has improved in the port, with lead times of 3-5 days – down from last week’s 4-7 days. Bunker demand in South Korean ports was modest at the start of this week, but it has since picked up, a source says. Recommended lead times for all grades in southern and western ports stand at 3-5 days – unchanged from last week.

South Asia

Several Indian ports, including Kandla on the northwest coast, and Cochin and Chennai on the southern coast have good availability of VLSFO and LSMGO, with short lead times of around 2-3 days. But both grades remain subject to availability in Mumbai and Tuticorin. Meanwhile, supply is subject to enquiry in Haldia. Rough weather conditions are anticipated to disrupt bunker deliveries in India’s west coast ports of Sikka and Kandla between 31 May-3 June, and in the southwestern port of Visakhapatnam on 1 June.

Middle East

All bunker fuel grades are in tight availability in Fujairah amid good demand, a source says. Lead times of 5-7 days are recommended across all three grades in the port. VLSFO and HSFO will need around 3-6 days of lead time. Some suppliers can offer prompt stems for all grades, but depends on the stem size, the source adds. In the UAE port of Khor Fakkan, lead times across all grades remain unchanged on the week at 5-7 days.

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Source: Hellenicshipping


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