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:

• LSMGO supply remains good in Singapore
• Availability tight across all grades in Zhoushan
• Low demand in several South Korean and Japanese ports

Singapore

Singapore grapples with tight availability of VLSFO despite average demand this week, leading to recommended lead times of up to 10 days. Four suppliers face challenges in meeting delivery schedules.

HSFO lead times remain in the range of 6-13 days, largely unchanged from the previous week. Meanwhile, LSMGO is more readily available, with short lead times of 2-5 days.

According to Enterprise Singapore’s latest data, residual fuel oil stocks in the port have averaged 6% higher this month compared to December. The port has witnessed a substantial 28% surge in net fuel oil imports in January.

On the contrary, middle distillate stocks have declined by 15% this month, reaching multi-year lows of 6.98 million bbls.

China, East Asia and Oceania

Zhoushan faces tightened availability across all grades due to low stocks among several suppliers. Recent weather disruptions have made the situation worse, causing bunker backlogs and longer lead times. Lead times for VLSFO and LSMGO have increased from 3-5 days to 5-8 days. HSFO now requires a lead time of 7-8 days.

Dalian continues to face tight supply of VLSFO and LSMGO. In nearby Tianjin, all grades are scarce, and deliveries are subject to enquiry. Qingdao is witnessing constrained prompt availability of VLSFO and LSMGO.

Suppliers in southern Chinese ports, including Shanghai, Xiamen and Guangzhou, are encountering tight availability of VLSFO and LSMGO, and HSFO is also tight in Shanghai. Fuzhou sees both low sulphur grades subject to inquiry, while Yangpu has relatively better supply for both grades.

In Hong Kong, availability of all grades has seen a slight improvement, with lead times reduced from 14 days last week to approximately 10 days now. Meanwhile, at Port Klang in Malaysia, there is continued tightness in VLSFO and LSMGO availability, with recommended lead times of around two weeks. Some suppliers are on the verge of running out of HSFO stocks.

Despite low bunker demand in South Korean ports, lead times for all grades vary widely between 5-10 days, remaining virtually unchanged from the previous week. However, there is a concern of potential disruption to bunker deliveries between 1-4 February due to anticipated high winds and waves in the South Korean ports of Ulsan, Onsan, Busan, Daesan, Taean and Yeosu.

In Japan, sluggish bunker demand persists due to elevated prices, limited cargo availability, and winter-induced adverse weather. Tokyo currently has a VLSFO premium of $17/mt over Singapore, and $23/mt over Zhoushan. Various lead times are recommended across key Japanese ports, with around six days in Tokyo, Chiba, Osaka and Kobe, approximately eight days in Nagoya and Yokkaichi, and longer periods of 11-13 days in Mizushima and Oita.

Additionally, Japanese petroleum company Idemitsu Kosan will shut its Yamaguchi refinery this March. The refinery has a crude oil processing capacity of 120,000 b/d, according to Reuters.

This might constrain supply in Japan further in the coming months, a source says.

Furthermore, adverse weather forecasts for Subic Bay in the Philippines, Ho Chi Minh in Vietnam and Tauranga in New Zealand between late January and early February have raised concerns about potential disruptions to bunkering operations in these ports.

South Asia

Kandla, situated on India’s northwest coast, currently enjoys abundant VLSFO and LSMGO availability. In contrast, several other Indian ports, such as Mumbai, Cochin and Chennai, are grappling with supply constraints for both grades.

Sri Lanka’s Colombo boasts ample availability for all three bunker fuel grades.

Middle East

The ongoing attacks on commercial ships in the Red Sea have prompted shipping companies to divert vessels around Africa instead of taking the shorter Suez Canal route. This shift in shipping routes has gradually dented bunker demand in Fujairah.

Despite a decline in demand, prompt availability remains tight for all grades in Fujairah. Lead times of 7-10 days are recommended – almost unchanged from last week. Prompt availability is also tight in the UAE port of Khor Fakkan, where similar lead times of 7-10 days are recommended for all grades.

LSMGO is readily available for supply in nearby Omani ports, including Sohar, Salalah, Duqm and Muscat.

By Tuhin Roy

Photo credit and source: ENGINE
Published: 31 January, 2024