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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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Wednesday, 06 May 20
KOSPO INVITED COAL BIDS FOR LOW CALORIFIC VALUE COAL
COALspot.com: Korea Southern Power Co., Ltd. (KOSPO) has issued an International tender for 160,000 Metric Tons (MT) Low Calorific Value Coal for J ...
Wednesday, 06 May 20
COST CHALLENGES IN A US$20/BBL WORLD - WOOD MACKENZIE
A new approach is needed to ensure supply sector resilience
How will US$20/bbl affect the oil and gas supply chain?
It’s going to g ...
Wednesday, 06 May 20
MARKET INSIGHT - INTERMODAL
It comes as no surprise that activity in the dry bulk SnP market remains soft, with asset values caught in the downward spiral generated by the Cov ...
Wednesday, 06 May 20
FLOATING STORAGE OF OIL CARGOES - STANDARD CLUB
KNOWLEDGE TO ELEVATE
Due to a combination of circumstances there is now a worldwide shortage of storage space ashore for both unrefi ...
Wednesday, 06 May 20
IRON ORE TRADE REMAINS REMARKABLY RESILIENT THIS YEAR, AT LEAST IN ASIA - BANCHERO COSTA
Iron ore trade remains remarkably resilient this year, at least in Asia, despite the global economic impact from COVID-19. In the first 4 months of ...
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- MS Steel International - UAE
- Siam City Cement PLC, Thailand
- Central Electricity Authority - India
- Medco Energi Mining Internasional
- Sindya Power Generating Company Private Ltd
- Kapuas Tunggal Persada - Indonesia
- Tamil Nadu electricity Board
- Vedanta Resources Plc - India
- Semirara Mining and Power Corporation, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Planning Commission, India
- The Treasury - Australian Government
- Meenaskhi Energy Private Limited - India
- Aditya Birla Group - India
- London Commodity Brokers - England
- GN Power Mariveles Coal Plant, Philippines
- Merrill Lynch Commodities Europe
- Intertek Mineral Services - Indonesia
- Bangladesh Power Developement Board
- Vizag Seaport Private Limited - India
- McConnell Dowell - Australia
- Ministry of Transport, Egypt
- Larsen & Toubro Limited - India
- Wood Mackenzie - Singapore
- Kumho Petrochemical, South Korea
- Cement Manufacturers Association - India
- Bayan Resources Tbk. - Indonesia
- Uttam Galva Steels Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Baramulti Group, Indonesia
- Sarangani Energy Corporation, Philippines
- Parry Sugars Refinery, India
- Bhoruka Overseas - Indonesia
- India Bulls Power Limited - India
- Electricity Generating Authority of Thailand
- Essar Steel Hazira Ltd - India
- The State Trading Corporation of India Ltd
- Kaltim Prima Coal - Indonesia
- Anglo American - United Kingdom
- Gujarat Electricity Regulatory Commission - India
- PTC India Limited - India
- Indian Oil Corporation Limited
- Orica Mining Services - Indonesia
- Posco Energy - South Korea
- Attock Cement Pakistan Limited
- Ministry of Finance - Indonesia
- Barasentosa Lestari - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Siam City Cement - Thailand
- European Bulk Services B.V. - Netherlands
- Singapore Mercantile Exchange
- Madhucon Powers Ltd - India
- Borneo Indobara - Indonesia
- Pendopo Energi Batubara - Indonesia
- Ministry of Mines - Canada
- Independent Power Producers Association of India
- Simpson Spence & Young - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Chettinad Cement Corporation Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Lanco Infratech Ltd - India
- Meralco Power Generation, Philippines
- Indogreen Group - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Metalloyd Limited - United Kingdom
- Renaissance Capital - South Africa
- TeaM Sual Corporation - Philippines
- Billiton Holdings Pty Ltd - Australia
- Coal and Oil Company - UAE
- Eastern Coal Council - USA
- AsiaOL BioFuels Corp., Philippines
- Cigading International Bulk Terminal - Indonesia
- Malabar Cements Ltd - India
- Georgia Ports Authority, United States
- Mjunction Services Limited - India
- Globalindo Alam Lestari - Indonesia
- Bulk Trading Sa - Switzerland
- Petron Corporation, Philippines
- Bukit Baiduri Energy - Indonesia
- Oldendorff Carriers - Singapore
- Indonesian Coal Mining Association
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Ind-Barath Power Infra Limited - India
- Miang Besar Coal Terminal - Indonesia
- Standard Chartered Bank - UAE
- Semirara Mining Corp, Philippines
- Orica Australia Pty. Ltd.
- Therma Luzon, Inc, Philippines
- Energy Link Ltd, New Zealand
- The University of Queensland
- Global Business Power Corporation, Philippines
- IEA Clean Coal Centre - UK
- Africa Commodities Group - South Africa
- Commonwealth Bank - Australia
- San Jose City I Power Corp, Philippines
- Central Java Power - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Iligan Light & Power Inc, Philippines
- Samtan Co., Ltd - South Korea
- Alfred C Toepfer International GmbH - Germany
- SMC Global Power, Philippines
- Sojitz Corporation - Japan
- Kobexindo Tractors - Indoneisa
- Global Coal Blending Company Limited - Australia
- Tata Chemicals Ltd - India
- Minerals Council of Australia
- Bukit Asam (Persero) Tbk - Indonesia
- Coastal Gujarat Power Limited - India
- SN Aboitiz Power Inc, Philippines
- Formosa Plastics Group - Taiwan
- Wilmar Investment Holdings
- Sakthi Sugars Limited - India
- Holcim Trading Pte Ltd - Singapore
- Rio Tinto Coal - Australia
- GVK Power & Infra Limited - India
- Ceylon Electricity Board - Sri Lanka
- Thai Mozambique Logistica
- Ambuja Cements Ltd - India
- Star Paper Mills Limited - India
- Kepco SPC Power Corporation, Philippines
- PowerSource Philippines DevCo
- Mintek Dendrill Indonesia
- Eastern Energy - Thailand
- Global Green Power PLC Corporation, Philippines
- Marubeni Corporation - India
- Bahari Cakrawala Sebuku - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Karaikal Port Pvt Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Sical Logistics Limited - India
- Bharathi Cement Corporation - India
- Aboitiz Power Corporation - Philippines
- Straits Asia Resources Limited - Singapore
- Bukit Makmur.PT - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- LBH Netherlands Bv - Netherlands
- Kartika Selabumi Mining - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Directorate Of Revenue Intelligence - India
- Australian Commodity Traders Exchange
- Indian Energy Exchange, India
- Mercuria Energy - Indonesia
- SMG Consultants - Indonesia
- VISA Power Limited - India
- Australian Coal Association
- ASAPP Information Group - India
- Chamber of Mines of South Africa
- Goldman Sachs - Singapore
- OPG Power Generation Pvt Ltd - India
- Carbofer General Trading SA - India
- South Luzon Thermal Energy Corporation
- Pipit Mutiara Jaya. PT, Indonesia
- Trasteel International SA, Italy
- Toyota Tsusho Corporation, Japan
- GMR Energy Limited - India
- Latin American Coal - Colombia
- Mercator Lines Limited - India
- Romanian Commodities Exchange
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Videocon Industries ltd - India
- International Coal Ventures Pvt Ltd - India
- Jindal Steel & Power Ltd - India
- Dalmia Cement Bharat India
- Leighton Contractors Pty Ltd - Australia
- Maheswari Brothers Coal Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Grasim Industreis Ltd - India
- Economic Council, Georgia
- Price Waterhouse Coopers - Russia
- Krishnapatnam Port Company Ltd. - India
- Coalindo Energy - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- CIMB Investment Bank - Malaysia
- Sree Jayajothi Cements Limited - India
- Bhushan Steel Limited - India
- Edison Trading Spa - Italy
- White Energy Company Limited
- Indo Tambangraya Megah - Indonesia
- Manunggal Multi Energi - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Heidelberg Cement - Germany
- Parliament of New Zealand
- Binh Thuan Hamico - Vietnam
- Kideco Jaya Agung - Indonesia
- Xindia Steels Limited - India
- Karbindo Abesyapradhi - Indoneisa
- New Zealand Coal & Carbon
- Thiess Contractors Indonesia
- Riau Bara Harum - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Altura Mining Limited, Indonesia
- CNBM International Corporation - China
- Timah Investasi Mineral - Indoneisa
- Energy Development Corp, Philippines
- Interocean Group of Companies - India
- Indika Energy - Indonesia
- IHS Mccloskey Coal Group - USA
- Gujarat Sidhee Cement - India
- GAC Shipping (India) Pvt Ltd
- Jaiprakash Power Ventures ltd
- ICICI Bank Limited - India
- Makarim & Taira - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Port Waratah Coal Services - Australia
- Deloitte Consulting - India
- Antam Resourcindo - Indonesia
- Agrawal Coal Company - India
- Salva Resources Pvt Ltd - India
- Power Finance Corporation Ltd., India
- Electricity Authority, New Zealand
- PNOC Exploration Corporation - Philippines
- Bhatia International Limited - India
- Savvy Resources Ltd - HongKong
- Banpu Public Company Limited - Thailand
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