Business

Argus Media: Asian HSFO market falls on supply flows to Singapore

380cst HSFO backwardation narrowed to over a two-month low of $5.75/t on analyst and trader expectations of higher supply flows to Singapore.

Published

3 years ago

May 12, 2022

Admin

The Asian 380cst high-sulphur fuel oil (HSFO) market has weakened since late last week because of expectations of increased cargo flows to Singapore this month.

11 May, 2022

Up to 989,800t (206,000 b/d) of HSFO is expected to arrive in Singapore from the west of Suez in May, the highest since the 1.09mn t that arrived in September 2019, according to data from oil analytics firm Vortexa. The reason for the higher supply flow to Singapore is unclear.

Venezuela is the top supplier at 280,800t. Russia is the second-largest supply source, accounting for 16.3pc or 161,300t, the highest since 174,100t in April 2021.

More Russian cargoes could head to Singapore following a ban imposed by the US and Canada on oil imports from Russia and a proposed phasing out of EU oil imports from Russia by the end of this year, market participants said.

The 380cst HSFO east-west spreads for the forward month have been falling steadily since late last week, hitting around a two-month low of $16/t on 10 May. They were last lower in early March when it hit the low teens, according to brokers. The spreads were in a $40s-50s/t range in the second half of April.

HSFO supply flows from Japan to Singapore this month are likely to hit a three-month high of 127,000t, Vortexa data show. The higher exports could be because some secondary units at Japanese refineries remain offline, a source familiar with operations at Japan's largest refiner Eneos told Argus.

Eneos shut its 145,000 b/d Sendai and 129,000 b/d Chiba refineries from mid-March to the end of April following an earthquake, although some secondary units may not be on line yet. Eneos halted operations again at the Sendai plant on 9 May because of a technical issue.

Other Japanese refineries could have boosted run rates while the Sendai and Chiba plants were shut, resulting in more HSFO output as a by-product.

The 380cst HSFO backwardation, or the balance May-June timespread, also narrowed to over a two-month low of $5.75/t yesterday on analyst and trader expectations of higher supply flows to Singapore. The backwardation was last narrower on 4 March at $4.75/t.

By Sarah Giam

Photo credit and source: Argus Media
Published: 12 May, 2022

LNG Bunkering

China: Ningbo Zhoushan Port completes first LNG bunkering operation for 2025

Bunkering vessel “Hai Yang Shi You 302” supplied more than 10,000 cubic metres of LNG bunker fuel to containership “MSC Adya” at the Ningbo-Zhoushan Port port on 5 January.

Published

3 days ago

January 10, 2025

Admin

China: Ningbo Zhoushan Port completes first LNG bunkering operation for 2025

Zhejiang Pilot Free Trade Zone Zhoushan Area on Wednesday (8 January) said Ningbo-Zhoushan Port successfully completed its first LNG bunkering operation for the year.

Bunkering vessel Hai Yang Shi You 302 supplied more than 10,000 cubic metres (m3) of LNG bunker fuel to containership MSC Adya at the port on 5 January.

Zhejiang Seaport International Trading, the bunker supplier for the operation, successfully obtained the Zhoushan Anchorage LNG bunkering licence in June 2024, extending refuelling services from dock to sea.

The company’s services cover Meishan, Chuanshan, Daxie and other port areas.

As China's first river-sea LNG transport and bunkering ship, Hai Yang Shi You is currently placed permanently at Ningbo Zhoushan Port, providing a variety of bunkering methods such as ship-to-ship and ship-to-shore.

Zhejiang Seaport International Trading will continue to expand the scope of bonded LNG bunkering operations and new alternative fuels such as green methanol, ammonia and biofuels in the Zhoushan Area.

Photo credit: Zhejiang Pilot Free Trade Zone Zhoushan Area
Published: 10 January, 2025

Business

Shandong Port Group bans US-sanctioned tankers from entering its ports

Group has prohibited ports to dock, unload or provide ship services to vessels on the Office of Foreign Control list managed by the US Department, according to a Reuters news report.

Published

3 days ago

January 10, 2025

Admin

Shandong Port Group bans US-sanctioned tankers from entering its ports

China’s Shandong Port Group has reportedly blocked tankers affected by US sanctions from entering its ports, according to an exclusive news report by Reuters on Wednesday (8 January).

Citing a notice from the port, which was issued on 6 January and shared to Reuters by traders, the Group has prohibited ports to dock, unload or provide ship services to vessels on the Office of Foreign Control list managed by the US Department.

In another notice released on 7 January, the ban came after sanctioned tanker Eliza II unloaded at Yantai Port in early January.

Shandong Port operates major ports on the east coast of China including Qingdao, Rizhao and Yantai, which are major terminals for importing sanctioned oil.

The traders said the ban could slow imports into China, the world’s largest oil importing nation, and increase shipping costs.

Photo credit: Shandong Port Group
Published: 10 January, 2025

Business

US DoD designates COSCO Shipping and CNOOC as ‘Chinese military companies’

COSCO Shipping has responded that the company and its subsidiaries ‘have consistently adhered to local laws and regulations, maintaining strict compliance in all international operations’.

Published

3 days ago

January 10, 2025

Admin

China: Cosco Shipping and bp to explore collaboration into methanol bunker fuel

The US Department of Defense (DoD) on Tuesday (7 January) has added China’s state-owned shipping company COSCO Shipping and two of its subsidiaries to its list of companies for allegedly having links to the Chinese military.

The subsidiaries are COSCO SHIPPING (North America) and COSCO SHIPPING Finance.

DoD released the update to the names of "Chinese military companies" operating directly or indirectly in the United States in accordance with the statutory requirement of Section 1260H of the National Defense Authorisation Act for Fiscal Year 2021. The Department said it will update the list with additional entities as appropriate.

Updating the Section 1260H list of "Chinese military companies" is an important continuing effort in highlighting and countering the People’s Republic of China's (PRC) Military-Civil Fusion strategy, DOD added.

The list also included other Chinese shipping-related companies such as shipbuilders China Shipbuilding Trading and China State Shipbuilding Corporation, oil company China National Offshore Oil Corporation (CNOOC), CNOOC China and CNOOC International Trading.

Shipping container manufacturer China International Marine Containers (CIMC) was also included on the list of companies.

In a response to the move, COSCO Shipping said it has noted the recent inclusion of the company and its subsidiaries to the sanctions list.

“COSCO Shipping and its subsidiaries have consistently adhered to local laws and regulations, maintaining strict compliance in all international operations,” it said on its website.

“We remain committed to facilitating global trade and providing high-quality commercial shipping and logistics services to clients worldwide, including agricultural producers, manufacturers, energy firms, retailers, and exporters in the United States.”

“We emphasise that none of the aforementioned companies are ‘Chinese military companies’. We will engage with U.S. authorities to clarify this matter. This designation does not impose sanctions or export controls, and our global operations will continue uninterrupted.”

Photo credit: COSCO Shipping
Published: 10 January, 2025