- Singapore 180/380 CST HSFO spread widens to 3-month high on strong 180 CST demand
The strong demand for 180 CST high sulfur fuel oil for power generation has widened the spread between FOB Singapore 180 CST HSFO and 380 CST HSFO, otherwise known as the viscosity spread, to a three-month high of $15.40/mt on June 10, fuel oil traders in Singapore said.
The spread was assessed at $12.75/mt on June 9 and was wider last on February 26, when it was assessed at $16.61/mt, Platts data showed.
Buying interest from Asia's power sector is on the rise to meet air-conditioning demand, fuel oil traders said, and Bangladesh is one such country that buys 180 CST HSFO for power generation.
"Recently we have received requirement [for 180 CST HSFO] from relatively small power companies in Bangladesh," a fuel oil trader said.
Bangladesh is one of the biggest buyers of Singapore 180 CST HSFO cargoes, market sources said.
On the other hand, 180 CST bunker fuel demand has been muted after the International Maritime Organization's low sulfur cap rule for marine fuel kicked in, in January this year. There have been no 180 CST high sulfur bunker fuel sales recorded since February this year, according to data by the Maritime and Port Authority of Singapore.
The 380 CST HSFO market has been supported by steady bunker fuel demand, but this has not been as strong as the recent spike in demand for 180 CST HSFO, market sources said.
"The 180 CST is supported by strong demand from power sector, but the 380 CST HSFO market is not weak. The strong viscosity spread is due to strong 180 CST," a Singapore-based trader said.
The FOB Singapore 180 CST HSFO assessment jumped $6.18/mt day on day to $245.75/mt at the Asian close on June 10, while that of FOB Singapore 380 CST HSFO rose $3.53/mt day on day to $230.35/mt, Platts data showed.
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