The following article regarding regional bunker fuel availability outlook for the East of Suez region has been provided by online marine fuels procurement platform ENGINE for publication on Singapore bunkering publication Manifold Times:

30 May 2023

• Rough weather hampers bunkering in Zhoushan
• LSMGO availability good in Omani ports
• Prompt availability is tight in Fujairah

Singapore

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.

Recommended lead times for LSMGO have also increased to 6-9 days from 5-7 last week.

Singapore’s residual fuel oil stocks have averaged 19% lower so far in May than across April, according to Enterprise Singapore. The port’s net fuel oil imports have plunged 23% lower so far this month and to their lowest level since last August. Both imports and exports are down this month. Fuel oil imports are down by 22% to a 15-month low of 22%, and fuel oil exports have also declined by 20% to a seven-month.

The port’s middle distillate stocks have also declined by 10% on average compared to April’s average.

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.

Also, the yearly decline in Chinese iron ore production in April has resulted in fewer iron core carriers calling in Chinese ports. This has dented bunker demand in Chinese ports including Zhoushan. The low bunker demand coupled with persistent weather disruptions has somewhat kept a lid on tightness in the port.

Recommended lead times for VLSFO and LSMGO in Zhoushan stand at 3-5 days – unchanged from last week. HSFO lead times also remain virtually unchanged at 4-7 days – but still longer than the other grades.

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.

But intermittent bad weather is forecasted between 31 May-4 June, which could disrupt bunkering in the South Korean ports of Ulsan, Onsan, Busan, Daesan, Taean and Yeosu.

Adverse weather conditions are also anticipated to disrupt bunker deliveries in the Thai ports of Koh Sichang and Leam Chabang and the Kiwi port of Tauranga between 1-2 June.

Bad weather forecast at the Vietnamese port of Ho Chi Minh on 1 June, which might hamper bunkering.

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.

Adverse weather conditions are also forecasted in the Sri Lankan port of Colombo on 3 June and 6 June, which could impact bunkering operations. Prompt supply for all grades is available with a supplier in Colombo.

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.

LSMGO is readily available in the Omani ports of Muscat, Salalah, Sohar and Duqm, with short lead times of 2-3 days.

By Tuhin Roy

Photo credit and source: ENGINE
Published: 31 May, 2023