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:

• Availability is good for all grades in Zhoushan
• Several South Korean ports brace for weather disruptions
• Availability is good in Sri Lankan ports

Singapore and Malaysia

VLSFO availability remains tight in Singapore, with standard lead times of about 10 days, similar to last week. Expedited deliveries within five days are available but at higher prices. HSFO lead times remain steady at 5-9 days, while LSMGO lead times have been revised to 3-9 days from 3-11 days last week.

According to Enterprise Singapore, residual fuel oil stocks in Singapore have averaged 6% lower so far this month compared to December. Fuel oil stocks have decreased to just over 21 million bbls, driven by a sharp 31% drop in the port's net fuel oil imports this month. Imports have fallen significantly by 1.10 million bbls, while exports have risen by 542,000 bbls. Middle distillate stocks in the port have also declined, averaging 15% lower this month.

At Malaysia's Port Klang, VLSFO and LSMGO supplies are abundant, with prompt small-quantity deliveries readily available. However, HSFO supply remains constrained.

East Asia

Lead times in Zhoushan remain steady for VLSFO at 3-5 days, similar to last week. LSMGO lead times have improved from six days last week to 3-5 days now, while HSFO requires 4-7 days.

Bunkering operations at Zhoushan's Tiaozhoumen and Xiazhimen outer anchorages have resumed from Monday, after being suspended for six days due to bad weather, according to a source. All anchorages in Zhoushan are now fully operational.

In Northern China, Dalian and Qingdao ports have ample VLSFO and LSMGO supplies, though Qingdao faces limited HSFO availability. HSFO and VLSFO supplies are tight in Tianjin, while LSMGO supply remains steady.

In Shanghai, LSMGO is readily available, but VLSFO and HSFO supplies are constrained. Fuzhou has strong supplies of both VLSFO and LSMGO grades, while Xiamen has good VLSFO availability but restricted LSMGO supply. Prompt deliveries of both grades remain limited at Yangpu and Guangzhou.

In Hong Kong, lead times for all fuel grades are around seven days, consistent with recent weeks. The port is forecast to experience bad weather conditions on Wednesday, which could disrupt bunker deliveries.

In Taiwan, Hualien and Taichung ports have stable VLSFO and LSMGO supplies with lead times of around two days, unchanged from last week. In Keelung, lead times of 2-3 days are recommended. At Kaohsiung, VLSFO lead times are approximately two days, but LSMGO deliveries remain challenging due to ongoing barge maintenance since late December.

Availability of all grades remains strong across South Korean ports despite high demand, with several suppliers recommending lead times of around three days, down from 4-6 days last week. However, intermittent rough weather expected this week may disrupt bunkering operations at Ulsan, Onsan, Busan, Daesan, Taean and Yeosu.

In Japan, VLSFO is readily available in major ports such as Tokyo, Chiba, Yokohama, Kawasaki, Osaka, Kobe, Sakai, Nagoya and Yokkaichi, though prompt availability is limited in Mizushima. LSMGO supply is generally stable, but securing prompt deliveries can be difficult in Tokyo, Chiba, Yokohama, Kawasaki, Osaka, Kobe, Sakai, Nagoya, Yokkaichi, and Mizushima. HSFO supply is tight in all ports, and in Oita, all fuel grades are subject to availability.

In Vietnam, Hai Phong and Vung Tau ports have robust VLSFO and LSMGO supplies, with prompt deliveries readily available.

Subic Bay in the Philippines may experience inclement weather from 15-16 January, potentially disrupting bunkering operations. Similarly, adverse weather conditions could impact bunkering in Thailand's Koh Sichang and Laem Chabang ports between 16 and 18 January.

Oceania

In Western Australia, the ports of Kwinana, Fremantle and Kembla have ample VLSFO and LSMGO supplies, with typical lead times of 7-8 days. In New South Wales, Sydney has sufficient LSMGO availability, while HSFO may require longer lead times.

Victoria’s ports, Melbourne and Geelong, have abundant stocks of VLSFO and LSMGO, but securing prompt HSFO deliveries can be difficult. In Queensland, Brisbane and Gladstone maintain adequate VLSFO and LSMGO supplies with lead times of 7-8 days, although HSFO availability in Brisbane remains limited.

In New Zealand, Tauranga and Auckland have enough VLSFO stocks. Auckland also has ample LSMGO supplies. However, rough weather is expected in Tauranga on 20 January, which could disrupt bunker operations.

South Asia

VLSFO and LSMGO availability remains limited at several Indian ports, including Kandla, Mumbai, Tuticorin, Chennai and Cochin, consistent with recent weeks. Both grades are subject to availability in Visakhapatnam, while a supplier in Paradip and Haldia is nearly out of stock.

Adverse weather in Kandla and Sikka ports may disrupt bunker operations on Thursday.

In Sri Lanka, lead times of around seven days are recommended for all grades at Colombo port, almost unchanged from last week. Bad weather is forecast for Saturday, which could impact deliveries.

In contrast, Hambantota's lead times for all grades have decreased from around six days last week, to just two days now.

Middle East

In Fujairah, prompt availability remains tight, with lead times for all grades steady at 5-7 days, unchanged from last week. Similarly, suppliers in Khor Fakkan are recommending lead times of 5-7 days for all grades.

In contrast, Jeddah port in Saudi Arabia has adequate supplies of both VLSFO and LSMGO. VLSFO supply remains under pressure in Djibouti, while LSMGO is more readily available.

Omani ports, including Sohar, Salalah, Muscat and Duqm, have ample LSMGO supplies with prompt deliveries available.

By Tuhin Roy

Photo credit and source: ENGINE
Published: 15 January, 2025 

Once a week, bunker intelligence platform ENGINE will publish a snapshot of LNG bunker prices in the world’s two biggest bunkering hubs. The following is the latest snapshot:

Rotterdam’s LNG bunker price has risen on higher bunker premiums, while Singapore’s price has been steady amid subdued demand in the broader Asian LNG market.

Changes in weekly LNG bunker prices:

• Rotterdam up by $15/mt to $863/mt
• Singapore up by $6/mt to $870/mt

Rotterdam

Rotterdam's LNG bunker price has risen by $15/mt over the past week, reaching $863/mt. This increase was mainly driven by a surge in LNG bunker premiums, which more than doubled from around $70/mt to $145/mt during this period.

Cold weather in Europe and high gas withdrawal rates have also added upward pressure on LNG prices. The gas withdrawal rate refers to the speed at which natural gas is extracted from storage to meet demand.

“Cold weather has been driving up heating demand and gas withdrawal rates have been faster than expected. EU storage has now dropped below 70% capacity, which is a bit below average for the time of year and far below the 85% we had heading into 2024,” said Emma Richards, associate director of oil and gas at research firm BMI.

Gas prices were also supported by an outage caused by a compressor failure at Equinor's Hammerfest LNG plant in northern Norway, which processes gas from the Snøhvit natural gas field.

“Snøhvit’s restart date was extended by 10 days to 19 January compared to the initial estimated restart date of 10 January, following a trip on 2 January. This may provide support for prices,” noted energy research firm Rystad Energy.

Meanwhile, the front-month Dutch TTF Natural Gas contract, a key European gas market benchmark, dropped by $1.16/MMBtu ($60/mt) to $13.81/MMBtu ($718/mt) during the same period.

Singapore

Singapore’s LNG bunker price has remained broadly stable in the past week, amid tepid demand in the overall Asian LNG market.

LNG bunker prices in the region are generally linked to NYMEX Japan/Korea Marker (JKM) values. The front-month JKM contract fell by $0.20/MMBtu ($10/mt) to $14.16/MMBtu ($736/mt) during the same period.

“Fundamentals remain weak in Asia with limited purchase interests stemming from China and South Korea, while some buyers such as CPC Corporation, Thailand's PTT, Bangladesh’s RPGCL and northeast Japanese power utility Tohoku Electric were seeking spot LNG for February and March delivery,” Rystad Energy said.

Going forward, Japanese LNG demand could get a boost from planned maintenances at two nuclear power plants in Takahama and Ohi.

“However, buying interests from Japanese importers remain limited as major importers have bought in advance,” Rystad said.

By Tuhin Roy

Photo credit and source: ENGINE
Published: 14 January, 2025

Beijing-based commodity market information provider JLC Network Technology Co. recently shared its JLC China Bunker monthly report for December 2024 with Manifold Times through an exclusive arrangement:

China’s daily bonded bunker fuel sales slip in December

China’s daily bonded bunker fuel sales slipped in December, as domestic LSFO supply tightened.

The country sold about 1.59 million mt of bonded bunker fuel in the month, with daily sales at 51,332 mt, a dip of 1.25% from a month earlier, JLC’s data shows. (Note: The volume of China’s November bonded bunker fuel sales has been revised to 1.56 million mt, up from 1.52 million mt stated in the report for November, with Chimubusco’s sales up from 320,000 mt to 360,000 mt.)

Bonded bunker fuel sales by Chimbusco, Sinopec (Zhoushan), SinoBunker and China Changjiang Bunker (Sinopec) settled at 450,000 mt, 500,000 mt, 40,000 mt and 15,000 mt in the month, while those by suppliers with regional bunkering licenses settled at 586,300 mt.

Overall bunkering demand was relatively stable in the month, but domestic refiners continued to cut their LSFO production amid tight quotas, resulting in a decline in daily bonded bunker fuel sales.

China’s bonded bunker fuel exports surge in November

China’s bonded bunker fuel exports surged in November, as bunker suppliers were making efforts to boost sales, also because of more re-export trade activities.

The country exported about 1.82 million mt of bonded bunker fuel in the month, with the daily exports at 60,643 mt, up by 46.57% month on month and 32.97% year on year, JLC calculated, with reference to data from the General Administration of Customs of PRC (GACC).

In breakdown, heavy bunker fuel exports climbed to about 1.71 million mt, accounting for 93.77% of the total exports, while light bunker fuel exports amounted to 113,300 mt, occupying 6.23%.

Despite a further drop in domestic LSFO output, bonded distributors exported more bonded bunker fuel in the month, in a bid to achieve their annual sales targets and lower their inventories. Meanwhile, bonded distributors saw more arrivals of imported LSFO cargoes, and they sold more bonded bunker fuel in the form of re-export trade, which also drove up the exports.

China tallied a total of 18.19 million mt of bonded bunker fuel exports in January-November, with the daily exports at 54,309 mt, inching up by 0.39% from the same months in 2023, JLC estimates, based on the GACC data. Specifically, heavy bunker fuel exports settled at 16.99 million mt in the eleven months, accounting for 93.37% of the total, while light bunker fuel exports settled at 1.21 million mt, making up 6.63%.

Domestic-trade heavy bunker fuel demand strengthens in December

Domestic-trade heavy bunker fuel demand strengthened in December.

Domestic-trade heavy bunker fuel demand amounted to 400,000 mt in December, rising by 20,000 mt or 5.26% month on month, JLC’s data shows.

Shipowners just made purchases to meet rigid demand in the first half of the month when domestic bunker fuel prices rose. However, they engaged in more transactions in the second half as prices retreated and their restocking demand increased amid the approach of the Spring Festival.

On the flip side, domestic light bunker fuel demand dropped to 140,000 mt in the month, down by 10,000 mt or 6.67% from the prior month.

Market sentiment was bearish on diesel demand, attributable to lower operating rates at infrastructure construction and other outdoor projects amid falling temperatures.

Bunker Fuel Supply

China’s bonded bunker fuel imports hit 44-month high

China’s bonded bunker fuel imports soared significantly in November, hitting a 44-month high, as domestic LSFO supply tightened amid insufficient export quotas.

China imported 915,200 mt of bonded bunker fuel in the month, the highest level since March 2021, JLC calculated, with reference to data from the GACC. The imports jumped by 35.50% from the previous month and 70.46% from a year earlier.

Domestic refiners continued to cut their LSFO output as they had run short of export quotas. As a result, bonded dealers had to import more bonded bunker fuel to fill the demand gap. These refiners produced about 466,000 mt of LSFO in November, with the daily output at 15,533 mt, plunging by 38.87% month on month and 41.58% year on year, JLC’s data shows.

While LSFO imports grew, imports of bonded HSFO and MGO were still basically stable in November.

Malaysia was still the largest bonded bunker fuel supplier to China in November, shipping 472,200 mt of bonded bunker fuel to China, which accounted for 51.60% of China’s total imports. Meanwhile, Singapore and South Korea remained in the second and third place with 262,100 mt and 112,000 mt, accounting for 28.64% and 12.23%, respectively. Peru came in fourth with 86,900 mt, occupying 7.53%.

China imported a total of 4.95 million mt of bonded bunker fuel in January-November, skyrocketing by 29.33% from the corresponding months in 2023, versus a rise of 22.61% in January-October.

Blenders raise heavy bunker fuel supply in December

Chinese blenders raised their heavy bunker fuel supply in December, as downstream restocking increased amid the approach of the Chinese New Year holiday, though supply of some blendstock such as shale oil and light coal tar was relatively tight.

These blenders supplied about 430,000 mt of domestic-trade heavy bunker fuel in the month, a boost of 30,000 mt or 7.5% month on month, JLC’s data shows.

On the contrary, domestic-trade light bunker fuel supply tightened amid weaker diesel demand and refineries’ lower operating rates. Domestic-trade MGO supply shrank to 160,000 mt in December, down by 20,000 mt or 11.11% from a month earlier, the data indicates.

BunkerPrices,Profits

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JLC Network Technology Co., Ltd is recognised as the leading information provider in China. We specialise in providing the transparent, high-value, authoritative market intelligence and professional analysis in commodity market. Our expertise covers oil, gas, coal, chemical, plastic, rubber, fertilizer and metal industry, etc.

JLC China Bunker Fuel Market Monthly Report is published by JLC Network Technology Co., Ltd every month on China bunker market, demand, supply, margin, freight index, forecast and so on. The report provides full-scale & concise insight into China bunker oil market.

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Related: JLC China Bunker Fuel Market Monthly Report (November 2024)
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Note: China-based commodity market information provider JLC Technology has been providing Singapore bunkering publication Manifold Times China bunker volume data since 2020. Data from earlier periods are available here.

Photo credit: JLC Network Technology
Published: 13 January, 2024