Shanghai-Zhoushan delivered marine fuel 0.5%S spread at over 7-month low
25th November 2021 09:03 GMT

The delivered low sulfur fuel oil bunker differential between Shanghai and Zhoushan moved to parity Nov. 24, which was at more than seven-month low, S&P Global Platts data showed, as firming demand at Zhoushan kept bunker prices supported despite a flat price surge.

The spread was last at parity April 13, Platts data showed.

Shipowners with impending bunker requirements at Zhoushan are undeterred by the flat price surge and had submitted inquiries, which lifted low sulfur fuel oil bunker demand, traders said Nov. 24.

"The pickup in demand can be attributed to vessel schedules, because the bulk of inquiries seen were for prompt deliveries with dates ranging around early-December. Shipowners whose vessels are arriving at later dates, can afford to hold back inquiries until the flat price softens," a Zhoushan-based bunker supplier said.

The benchmark Singapore Marine Fuel cargo assessments surged $31.48/mt on the day to $614.74/mt Nov. 24, Platts data also showed.

Delivered marine fuel 0.5%S gained $28/mt and $23/mt on the day at Zhoushan and Shanghai respectively, while the grade at both ports was similarly assessed at $625/mt Nov. 24, Platts data showed.

During and outside the Platts Market on Close assessment process between 0830 GMT and 0930 GMT Nov. 24, offers for Zhoushan-delivered marine fuel 0.5%S were heard at $620-$635/mt, whereas offers for the delivered grade at Shanghai was heard at $616-$625/mt.

"Delivered [marine fuel 0.5%S] prices at Zhoushan have picked up amid above-average demand, but some competitive offers that threaten to push prices downwards were still seen on the market," a second Zhoushan-based bunker supplier said.

"There are fewer bunker requirements at the port of Shanghai, mainly because more dry bulk vessels have shifted discharge operations to in-land river ports within closer proximity to the cargoes' final destinations," a source from a shipping company said.

The source also said that the delivered low sulfur fuel oil bunker prices at river ports are also comparable with offers seen at Shanghai.

Bunkerworld .,
25th November 2021 09:03 GMT