- Demand for spot bunkers in the port of Singapore surged on 17 October, with owners rushing to confirm deliveries before the end of the month because of tighter supply availabilities.
Argus reported 23 spot deals across grades for a total volume of 13,393t, up by more than double from the usual deal number of around 10.
Tight availability
As many as 13 companies submitted transaction details on 17 October, compared to six on a more typical day.
Outright prices fell on 17 October from the previous trading day for the first time in a week, which brought buyers back to the market.
“Some owners have been postponing their buying already for a while but are now forced to purchase given their requirements, especially for prompt delivery”, a London-based trader said.
“Availabilities are tight, so owners are rushing to fix everything before 30 October, with only a few suppliers able to deliver during 23-30 October”, a local buyer added.
Most deals Argus received indeed are for delivery during 25-30 October.
Clearing backlog
The increase in activity is also likely the result of the end of the 1-7 October Golden Week holiday, with some market backlog now clearing.
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Source: Manifold Times
