SINGAPORE DATA: Nov bunker fuel sales up nearly 3% on month to 4.26 mil mt
14th December 2020 09:07 GMT

Total bunker sales in Singapore rose 2.65% on the month to 4.26 million mt in November, preliminary data released over the weekend by Singapore's Maritime and Port Authority showed, on the back of strong demand for low sulfur bunkers compared to October.

While sales of 380 CST marine fuel oil bunkers stood at 995,000 mt in November, 10,000 mt less than the highest volumes so far in 2020 in October, high sulfur bunker suppliers pointed to the advantages Singapore offers shipowners as a bunkering hub for the grade.

"Singapore has three things going for it: excellent bunkering infrastructure, tank storage and blending expertise; given that most ports have wound down some of their high sulfur bunkering activities, or are inadequately equipped, shipowners with scrubber-fitted vessels are far more comfortable bunkering here knowing there's a regular supply of volumes on hand," the source said.

On the year, however the sales of 380 CST MFO were down 34.69%, consistent with the global shift to supply more IMO-compliant fuel, the mandate for which came into effect Jan. 1, 2020.

"At least for the next few months, we may see similar strong figures, perhaps not as much as a million [mt], but something close to it," another bunker supplier based in Singapore said.

Meanwhile, low sulfur fuel oil sales in November were 4.51% higher on the month, recovering slightly from the 6.52% drop in October, although bunker suppliers said that demand was still lacklustre.

"I've not seen too many fixtures this month (December) either, and there have been cases where I've lost inquiries to other ports like Zhoushan. The prices at other ports were more competitive for some time, and frankly, only the Singapore [0.5% cargo] prices were quite strong, compressing the margins for everyone downstream," a bunker supplier based here said.

Platts data showed that over H2 November, the average difference between Singapore delivered marine fuel 0.5%S assessments and the Zhoushan delivered marine fuel 0.5%S was $8.70/mt, with Singapore prices higher, compared with the H1 November average of minus $1.60/mt.

The spread for December has remained in the negative, last assessed at minus $8.50/mt on Dec. 11, although bunker suppliers have noted that demand is still quiet.

"We did see a brief improvement Dec. 10, when there were some strong inquiries, but then Dec. 11, it went back to the muted situation we've been used to for the last couple of weeks," said a Singapore-based low-sulfur fuel supplier.

On the year, sales in November were 71.51% higher, with sales for the 380 CST low sulfur grade accounting for the bulk of low sulfur fuel oil sales, at 72.23%, MPA data showed.

 


Bunkerworld .,
14th December 2020 09:07 GMT