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Monday, 23 December 19
VLSFO PRICING & AVAILABILITY NEEDS CAREFUL WATCHING - INTEGR8 FUELS
 As we approach January 1st 2020 , the VLSFO price premium to HSFO has widened considerably
We are clearly well into the IMO 2020 transition; changes in bunker infrastructure, availabilities and pricing are all having a major impact, posing challenges to bunker buyers and these are not going to go away quickly.
The process of switching infrastructure (storage and barges) from HSFO to VLSFO has been noticeably underway since September. We have seen a significant strengthening and then weakening in HSFO prices (see Integr8 briefing note 22nd November 2019) and now we are at the next stage, where buyers have/are switching rapidly towards VLSFO. The impacts of this change-over are again easily seen, in terms of terminal congestion, barge delays, availabilities and of course price.
Since October the quoted price of HSFO has fallen sharply, whereas the price of VLSFO in Rotterdam has been around $480-500/ton. VLSFO prices in Gibraltar, Fujairah and Singapore rising fast and well above the $540-560/ton range we saw in October/November. This means quoted VLSFO prices are now around $230-240/ton above HSFO.
VLSFO prices can vary by as much as $80 per tonne in the same region
The moves in VLSFO pricing reflect owners shifting towards these new compliant fuels and that there are constraints on infrastructure and availabilities in the VLSFO supply chain. The extent of this is not only seen in VLSFO price differences between main bunkering regions, but also VLSFO pricing within a given region. The graph below illustrates the significant variation in VLSFO pricing within the Mediterranean, with for instance quoted prices at Piraeus sometimes anywhere between $20-80/ton below Gibraltar prices and prices in Malta still plus or minus $20/ton compared with Gibraltar quotes. These positions mean as a buyer, being adaptable and looking at possible alternate bunkering locations could be very attractive.
In some instances MGO prices are only a small premium to VLSFO
Finally, these squeezes in VLSFO have already led to instances where there is an extremely small price differential between VLSFO and MGO (or even some instances where MGO has been priced below VLSFO). Currently, there is less than $10/ton differential between quoted prices for MGO and VLSFO in Singapore, down from around a $75/ton differential a couple of months ago. This is another strong case for buyers being adaptable in that bunkering MGO could be the ‘best option’.
These developments in the Med and Singapore markets are only illustrations of what can happen in other global regions and reflects the squeezes on the VLSFO system at certain times and in certain areas. There is no ‘quick fix’ here and issues will continue to arise well beyond the January 1st IMO 2020 start date, as shipowners start burning VLSFO and will have to build and replenish VLSFO stocks on board.
We are providing buyers with access to this information and analysis on any tightness in availabilities, any constraints on terminal and barging operations and ultimately the knowledge on pricing, all of which will assist decisions in this complex and consistently changing market.
Source: Integr8 Fuels
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Saturday, 01 August 20
SHIP SHAPE - OUCH: FIS
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Saturday, 01 August 20
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Oil demand in Asia Pacific might be expected to plunge 1.8m barrels per day (bpd) this year, but there are still strong prospects for growth over t ...
Friday, 31 July 20
SHORT-TERM IMPACT ON THE CHEMICAL SHIPPING MARKET IF THE INDIA-CHINA DISPUTE ESCALATES - DREWRY
Due to the India-China dispute, the threat of deteriorating trade relations between the two countries has become real. Meanwhile, we expect freight ...
Friday, 31 July 20
PANAMAX: THE PERIOD MARKET REMAINS QUIET WITH FEW FIXTURES REPORTED - FEARNLEYS
Capesize
After weeks of dropping rates, there are finally some resistance for the Capes. Pacific rounds improving to upper15,000s by the middle ...
Friday, 31 July 20
PANDEMIC SENDING SOUTH AFRICAN COAL INDUSTRY TO EARLIER GRAVE - IEEFA
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- Dalmia Cement Bharat India
- Tamil Nadu electricity Board
- Antam Resourcindo - Indonesia
- Indian Oil Corporation Limited
- Gujarat Electricity Regulatory Commission - India
- Sakthi Sugars Limited - India
- Bangladesh Power Developement Board
- Uttam Galva Steels Limited - India
- PowerSource Philippines DevCo
- Offshore Bulk Terminal Pte Ltd, Singapore
- Mercuria Energy - Indonesia
- Mercator Lines Limited - India
- Indian Energy Exchange, India
- Xindia Steels Limited - India
- Standard Chartered Bank - UAE
- Bank of Tokyo Mitsubishi UFJ Ltd
- Krishnapatnam Port Company Ltd. - India
- Bharathi Cement Corporation - India
- IHS Mccloskey Coal Group - USA
- Singapore Mercantile Exchange
- Leighton Contractors Pty Ltd - Australia
- Neyveli Lignite Corporation Ltd, - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bukit Makmur.PT - Indonesia
- Merrill Lynch Commodities Europe
- Madhucon Powers Ltd - India
- GVK Power & Infra Limited - India
- Siam City Cement - Thailand
- Bulk Trading Sa - Switzerland
- Intertek Mineral Services - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Meralco Power Generation, Philippines
- Eastern Energy - Thailand
- Videocon Industries ltd - India
- Jorong Barutama Greston.PT - Indonesia
- LBH Netherlands Bv - Netherlands
- Billiton Holdings Pty Ltd - Australia
- Sojitz Corporation - Japan
- Ceylon Electricity Board - Sri Lanka
- Australian Coal Association
- Orica Australia Pty. Ltd.
- Metalloyd Limited - United Kingdom
- Port Waratah Coal Services - Australia
- Riau Bara Harum - Indonesia
- Posco Energy - South Korea
- Chamber of Mines of South Africa
- Bhatia International Limited - India
- TeaM Sual Corporation - Philippines
- Oldendorff Carriers - Singapore
- Latin American Coal - Colombia
- Gujarat Mineral Development Corp Ltd - India
- Orica Mining Services - Indonesia
- Coastal Gujarat Power Limited - India
- Simpson Spence & Young - Indonesia
- Ministry of Finance - Indonesia
- Planning Commission, India
- Ambuja Cements Ltd - India
- Power Finance Corporation Ltd., India
- Commonwealth Bank - Australia
- Price Waterhouse Coopers - Russia
- Romanian Commodities Exchange
- Siam City Cement PLC, Thailand
- Anglo American - United Kingdom
- Salva Resources Pvt Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Aditya Birla Group - India
- Global Green Power PLC Corporation, Philippines
- Indonesian Coal Mining Association
- Africa Commodities Group - South Africa
- CIMB Investment Bank - Malaysia
- Global Coal Blending Company Limited - Australia
- White Energy Company Limited
- Sindya Power Generating Company Private Ltd
- Bukit Baiduri Energy - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Gujarat Sidhee Cement - India
- Holcim Trading Pte Ltd - Singapore
- Marubeni Corporation - India
- Tata Chemicals Ltd - India
- Independent Power Producers Association of India
- Kumho Petrochemical, South Korea
- Malabar Cements Ltd - India
- Formosa Plastics Group - Taiwan
- ASAPP Information Group - India
- South Luzon Thermal Energy Corporation
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Sinarmas Energy and Mining - Indonesia
- Savvy Resources Ltd - HongKong
- Parry Sugars Refinery, India
- Essar Steel Hazira Ltd - India
- Aboitiz Power Corporation - Philippines
- Borneo Indobara - Indonesia
- Carbofer General Trading SA - India
- Vijayanagar Sugar Pvt Ltd - India
- European Bulk Services B.V. - Netherlands
- Rashtriya Ispat Nigam Limited - India
- Mjunction Services Limited - India
- Ministry of Mines - Canada
- Lanco Infratech Ltd - India
- Electricity Authority, New Zealand
- Deloitte Consulting - India
- Vizag Seaport Private Limited - India
- Altura Mining Limited, Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Kepco SPC Power Corporation, Philippines
- Therma Luzon, Inc, Philippines
- Global Business Power Corporation, Philippines
- Barasentosa Lestari - Indonesia
- Cement Manufacturers Association - India
- India Bulls Power Limited - India
- Mintek Dendrill Indonesia
- Jaiprakash Power Ventures ltd
- Goldman Sachs - Singapore
- Coal and Oil Company - UAE
- Kohat Cement Company Ltd. - Pakistan
- Samtan Co., Ltd - South Korea
- PNOC Exploration Corporation - Philippines
- Baramulti Group, Indonesia
- Karaikal Port Pvt Ltd - India
- The University of Queensland
- Wilmar Investment Holdings
- Petrochimia International Co. Ltd.- Taiwan
- SMG Consultants - Indonesia
- Attock Cement Pakistan Limited
- Bayan Resources Tbk. - Indonesia
- Kaltim Prima Coal - Indonesia
- Interocean Group of Companies - India
- Energy Link Ltd, New Zealand
- Semirara Mining Corp, Philippines
- Indo Tambangraya Megah - Indonesia
- Australian Commodity Traders Exchange
- GAC Shipping (India) Pvt Ltd
- ICICI Bank Limited - India
- Indika Energy - Indonesia
- Jindal Steel & Power Ltd - India
- Agrawal Coal Company - India
- Economic Council, Georgia
- Vedanta Resources Plc - India
- Directorate General of MIneral and Coal - Indonesia
- San Jose City I Power Corp, Philippines
- Manunggal Multi Energi - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Ministry of Transport, Egypt
- Kartika Selabumi Mining - Indonesia
- Kapuas Tunggal Persada - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Semirara Mining and Power Corporation, Philippines
- Sarangani Energy Corporation, Philippines
- Pendopo Energi Batubara - Indonesia
- Toyota Tsusho Corporation, Japan
- Banpu Public Company Limited - Thailand
- GN Power Mariveles Coal Plant, Philippines
- Kobexindo Tractors - Indoneisa
- Renaissance Capital - South Africa
- Thai Mozambique Logistica
- Straits Asia Resources Limited - Singapore
- Central Java Power - Indonesia
- Meenaskhi Energy Private Limited - India
- SN Aboitiz Power Inc, Philippines
- Medco Energi Mining Internasional
- The State Trading Corporation of India Ltd
- Binh Thuan Hamico - Vietnam
- Ind-Barath Power Infra Limited - India
- Coalindo Energy - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Globalindo Alam Lestari - Indonesia
- CNBM International Corporation - China
- Minerals Council of Australia
- Maheswari Brothers Coal Limited - India
- Timah Investasi Mineral - Indoneisa
- Star Paper Mills Limited - India
- VISA Power Limited - India
- Edison Trading Spa - Italy
- SMC Global Power, Philippines
- Energy Development Corp, Philippines
- Bhushan Steel Limited - India
- New Zealand Coal & Carbon
- Sree Jayajothi Cements Limited - India
- Chettinad Cement Corporation Ltd - India
- Rio Tinto Coal - Australia
- MS Steel International - UAE
- Kideco Jaya Agung - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Trasteel International SA, Italy
- PetroVietnam Power Coal Import and Supply Company
- Georgia Ports Authority, United States
- International Coal Ventures Pvt Ltd - India
- PTC India Limited - India
- Wood Mackenzie - Singapore
- Karbindo Abesyapradhi - Indoneisa
- Bhoruka Overseas - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Electricity Generating Authority of Thailand
- GMR Energy Limited - India
- London Commodity Brokers - England
- Larsen & Toubro Limited - India
- Sical Logistics Limited - India
- Central Electricity Authority - India
- Directorate Of Revenue Intelligence - India
- The Treasury - Australian Government
- Makarim & Taira - Indonesia
- IEA Clean Coal Centre - UK
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Eastern Coal Council - USA
- Heidelberg Cement - Germany
- Cigading International Bulk Terminal - Indonesia
- Parliament of New Zealand
- Grasim Industreis Ltd - India
- McConnell Dowell - Australia
- Iligan Light & Power Inc, Philippines
- Petron Corporation, Philippines
- OPG Power Generation Pvt Ltd - India
- Indogreen Group - Indonesia
- Thiess Contractors Indonesia
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