East of Suez Market Update

Credits: Matthis Volquardsen/ Pexels

Overall demand has been “slow” in Singapore so far this week, however, buying interest for HSFO grade remains strong, a source says. Stronger demand for the grade has contributed to keep HSFO supply tight in the port. Lead times remain almost unchanged from last week at 10-12 days. Meanwhile, VLSFO availability has improved in the East Asian bunker hub, with lead times dropping from 9-12 days last week to 6-8 days now. LSMGO also remains readily available, with short lead times of 3-5 days advised, down from 5-7 days last week.

East Asia And Oceania

Sluggish demand and weather-related disruptions have kept a lid on tightness across all grades in Zhoushan, a source says. Bunker availability is good across all grades in Zhoushan. Some suppliers, that were unable to supply large prompt VLSFO stems last week, can now supply the grade with a short lead time of 2-5 days. LSMGO and HSFO demand also remains good, with prompt supply available in the port. Bunkering resumed at Zhoushan’s OPL area on Tuesday evening after remaining suspended by bad weather conditions since Sunday. All four anchorages in the Chinese bunkering hub were operational on Tuesday.

Prompt availability for HSFO and LSMGO has also tightened across South Korean ports, with lead times varying between 4-11 days. Both grades were offered with lead times of 2-4 days and about six days across southern and western South Korean ports, respectively, last week. The South Korean ports of Ulsan, Onsan, Busan, Daesan, Taean and Yeosu are forecast to experience adverse weather conditions intermittently between 5-9 July, which might disrupt bunker operations.

South Asia

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

Meanwhile, both grades remain subject to availability in Mumbai, Visakhapatnam and Paradip as it has been in recent weeks. On the other hand, supply in Tuticorin port on the southeast coast and Haldia on the east coast remains subject to enquiry.

Rough weather is forecast at Kandla on Wednesday and Thursday, which could impact bunker deliveries.

Strong wind gusts of 21-29 knots and waves of more than two meters are forecast to hit the Sri Lankan port of Colombo on Wednesday, which may disrupt bunker operations.

Middle East

All grades remain in tight availability in Fujairah amid good demand. Lead times of 5-7 days are advised across all bunker fuel grades in the port – virtually unchanged from last week. But some suppliers can offer all bunker fuel grades for prompt delivery dates, but these deliveries depend on stem sizes, a source says. Availability of all bunker fuel grades remains good in the UAE port of Khor Fakkan, with unchanged lead times of 5-7 days from last week.

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Source: Hellenicshippingnews