ENGINE: East of Suez Bunker Fuel Availability Outlook
HSFO380 remains tight in Zhoushan and South Korea, and buyers should also expect longer lead times for the high sulphur grade in Fujairah.
Lead times for VLSFO and LSMGO in Zhoushan are unchanged on the week at 2-3 days. HSFO380 supply however continues to be tight in the Chinese port, with lead times stretching up to five days, as only two out of five suppliers can offer the fuel grade.
There have been no incoming HSFO cargoes in Zhoushan scheduled for October, according to vessel tracking and trading sources. After a period of tightening HSFO380 bunker supplies, Zhoushan’s price for the grade flipped from a discount to a premium over Singapore on 15 September, and over Fujairah on 22 September.
HSFO380 is in better availability in Shanghai, were lead times stand at 2-3 days. That is also the case of VLSFO and LSMGO in Shanghai.
South Korea’s HSFO380 supply remains tight as well, with no immediate prospects for HSFO imports to arrive in the country. Suppliers in South Korea can typically only accommodate smaller HSFO380 stems amid limited supplies. Lead times for VLSFO are longer by two days on the week, requiring up to seven days now.
Singapore’s lead times are slightly longer on the week, with VLSFO requiring up to nine days ahead, while recommended lead times are now at 4-6 days for LSMGO in the bunkering hub. HSFO380 remains scarce in the bunkering hub, with eight days needed in advance.
Singapore’s residual fuel oil stocks inched up by just 160,000 bbls in the week to 22 September, Enterprise Singapore data showed last week.
The bunkering hub’s fuel oil imports dropped by more than 6 million bbls on the week, to their lowest levels since January 2020, while exports rose by 925,000 bbls on the week.
In Fujairah, HSFO380 has also tightened particularly with lead times jumping by four days to stand at 12 days, which is among the longest across East of Suez ports. VLSFO and LSMGO lead times are unchanged from last week in Fujairah, at six days.
Source: ENGINE (https://engine.online/)