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:

• VLSFO and HSFO availability tight in Singapore
• VLSFO and LSMGO supply good in several Chinese ports
• Low bunker demand in Fujairah

Singapore and Southeast Asia

Bunker demand in Singapore has been “quiet” so far this week. Lead times for VLSFO have seen significant fluctuations recently, with most suppliers now advising up to 14 days. However, some can accommodate stems within four days. This shows a tightening in the grade’s supply compared to the previous week, when lead times were around 4-9 days.

HSFO supply has also tightened in the port, with lead times increasing from 4-7 days last week to 6-9 days now. In contrast, lead times for LSMGO remain relatively stable, ranging between 2-5 days, similar to the previous week.

Singapore’s residual fuel oil stocks in June averaged 10% higher than in May, despite a 37% decline in net fuel oil imports, according to Enterprise Singapore’s latest data.

In Malaysia’s Port Klang, VLSFO and LSMGO grades are abundantly available, with some suppliers offering prompt deliveries for smaller orders. However, HSFO supply is limited in the port.

In Indonesian ports of Jakarta and Surabaya, VLSFO and LSMGO grades are readily available. Additionally, Balikpapan port has good VLSFO supply.

East Asia

VLSFO and LSMGO supply remains strong in Zhoushan amid low bunker demand. Most suppliers are recommending lead times of 5-7 days, unchanged from last week. However, HSFO availability in Zhoushan remains tight, with several suppliers running low on stocks and advising lead times of 7-10 days for this grade.

In Northern China, VLSFO and LSMGO grades are easily available in Dalian port, Qingdao and Tianjin. But HSFO supply is limited in Qingdao and Tianjin. Supply of VLSFO and LSMGO grades is good in Shanghai, while HSFO availability is tight there. In Fuzhou and Xiamen, VLSFO and LSMGO grades are readily available, but prompt availability of both grades is tight in Guangzhou and Yangpu.

Suppliers in Taiwanese ports of Hualien, Kaohsiung, Taichung and Keelung can offer VLSFO and LSMGO deliveries with short lead times of 2-3 days, consistent with last week.

Hong Kong has sufficient supply of all bunker fuel grades, with typical lead times of approximately seven days.

In South Korea, availability of VLSFO and LSMGO has tightened significantly. Lead times for the two grades have increased from 6-8 days last week to 11-15 days now. However, one supplier can still provide deliveries with shorter lead times of 3-4 days. HSFO lead times have extended to 8-18 days from 6-8 days last week.

Rough weather conditions could potentially impact bunker operations this week in several South Korean ports, including Ulsan, Onsan, Busan, Daesan, Taean, and Yeosu.

In Japan, bunker demand remains weak amid high prices. Tokyo’s VLSFO price is at premiums of $33/mt and $55/mt over Singapore and Zhoushan’s benchmarks, respectively, as of Tuesday. Recommended lead times vary across major ports in Japan, with 8-10 days in Tokyo, Chiba, Osaka, Kobe, and Mizushima, and longer periods of 15-16 days in Nagoya, Yokkaichi, and Oita.

Oceania

In Western Australia, VLSFO and LSMGO grades are available in the ports of Kwinana, Fremantle, and Kembla, with typical lead times of 7-8 days. In New South Wales, LSMGO is readily available in Sydney, while HSFO supply depends on inquiry.

In Victoria, both Melbourne and Geelong ports have good availability of VLSFO and LSMGO grades. However, securing prompt HSFO deliveries can be difficult there.

In Queensland, Brisbane and Gladstone have sufficient stocks of VLSFO and LSMGO, with recommended lead times of around 7-8 days, but HSFO availability is constrained in Brisbane.

In New Zealand, Tauranga and Auckland have ample VLSFO supply. LSMGO supply is also good in Auckland. There is forecast of rough weather conditions throughout this week In Tauranga, which could affect bunker operations there.

South Asia

In several Indian ports such as Kandla, Mumbai, Tuticorin, Chennai, Cochin, Visakhapatnam, and Haldia, availability of VLSFO and LSMGO is currently limited due to supply shortages. One supplier in Paradip is nearly out of stocks for both fuel grades.

Mumbai, Kandla and Sikka ports in India are forecast to experience rough weather conditions intermittently this week, which could potentially disrupt bunker operations.

In contrast, the Sri Lankan port of Trincomalee has ample supplies of VLSFO, LSMGO, and HSFO grades.

Middle East

In Fujairah, despite low bunker demand, availability of all grades remains limited with most suppliers requiring lead times of 5-7 days, similar to last week.

A similar situation exists in the UAE port of Khor Fakkan, where suppliers are recommending lead times of 5-7 days.

Meanwhile, Jeddah port in Saudi Arabia has ample supply of VLSFO and LSMGO. In Djibouti, VLSFO supply is under pressure, while LSMGO is more readily available.

By Tuhin Roy

Photo credit and source: ENGINE
Published: 3 July, 2024