Bunkerworld .
Editorial

.

More blogs from Bunkerworld .
Asia residual fuel market: Key market indicators this week
19th April 2021 08:45 GMT

Stagnating demand in the Singapore low sulfur fuel oil market is not expected to ease in the April 19-23 week, according to bunker suppliers here, as the city-state faces competitively priced low sulfur bunker fuel from other Asian ports.

High sulfur fuel oil supply in the Middle East market remains crimped, facing competing demand from the power generation sector, according to traders based there, as procurement to meet summer demand ramps up.

MARINE FUEL 0.5% SULFUR

**The Singapore Marine Fuel 0.5%S May-June backwardation were rangebound April 19, with bids at $1/mt against offers at $2/mt, Intercontinental Exchange data showed.

**Delivered low sulfur bunker fuel premiums in China are expected to be capped by elevated supply and production amid poor demand.

**At Zhoushan port, high inventories and stiff competition saw the marine fuel 0.5%S premium to FOB Singapore marine fuel 0.5%S cargo flip into negative territory at minus $2.86/mt on April 16, Platts data showed.

**At Shanghai, the premium plunged $17.98/mt week on week to $2.14/mt on April 16, the lowest since Platts started assessing the grade on July 1, 2019, the data showed.

**Supply in Japan is expected to remain tight as ENEOS’ Negishi refinery at Tokyo Bay undergoes unplanned maintenance, with the shortage seen up until May.

**The competition between prices in Fujairah, Singapore, Hong Kong, and Zhoushan has thinned demand for marine fuel 0.5%S in Singapore. This is likely to put pressure on this week's demand in Singapore

**As of April 16, Platts data showed Fujairah-delivered marine fuel 0.5%S priced at an $8/mt discount to Singapore-delivered basis for the same grade.

HIGH SULFUR FUEL OIL

**According to brokers' indications and ICE data, the May Singapore high sulfur fuel oil viscosity spread was largely stable during April 19 morning trade from the April 16 assessment at $5.85/mt, with bids at $5/mt against offers at $6.25/mt.

**Traders expect Fujairah's HSFO inventory to remain under pressure April 19-23 as demand outweighs supply, after bunker suppliers based there said that meeting prompt delivery dates in H2 April is difficult.

**Market sources expect a slight increase in term contracts for Singapore 380 CST delivered bunker prices given that it is competitively priced against offers in China and Hong Kong.

**Premiums for ex-wharf Singapore 380CST HSFO fell $3.39/mt week on week to close at $2.35/mt in the week ended April 16.

**Traders expect some upside for 380CST HSFO demand in Singapore in the longer term as more shipowners bring back online their scrubber-fitted vessels that have not been operating since the pandemic began.


Bunkerworld .,
19th April 2021 08:45 GMT