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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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Tuesday, 14 January 20
MABUX: BUNKER MARKET THIS MORNING, JAN.14
MABUX World Bunker Index (consists of a range of prices for 380 HSFO, 180 HSFO and MGO (Gasoil) in the main world hubs) changed insignificant and i ...
Tuesday, 14 January 20
SHIPPING MARKET ANALYSIS - ALLIED SHIPBROKING
Uncertainty in the global geopolitical sphere seems to have not come to an end along with 2019, as 2020 commenced with renewed tensions between the ...
Tuesday, 14 January 20
DRY BULK MARKET: "THIS IS NOT THE END OF COAL" SAYS IEA - BALTIC EXCHANGE
A historic drop in coal-fired electricity generation will not sway global coal demand from its upward trajectory through to 2024, though growth wil ...
Saturday, 11 January 20
ARE YOU 95% CONFIDENT THAT YOUR VERY LOW SULPHUR FUEL IS ON SPEC AND MARPOL COMPLIANT? - GARD
KNOWLEDGE TO ELEVATE
Bunker fuel is a commodity and, like all commodities, is produced and sold according to specifications. Bunkers are usual ...
Saturday, 11 January 20
NEW PRICING COULD SPELL TROUBLE FOR CHINA'S COAL SECTOR - CHINA DIALOGUE
Benchmark coal tariffs have been the foundation of China’s electricity pricing since 2004 but this mechanism was replaced on January 1 with a ...
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- Cigading International Bulk Terminal - Indonesia
- Iligan Light & Power Inc, Philippines
- Romanian Commodities Exchange
- Tamil Nadu electricity Board
- Holcim Trading Pte Ltd - Singapore
- Mintek Dendrill Indonesia
- Binh Thuan Hamico - Vietnam
- Global Green Power PLC Corporation, Philippines
- Sindya Power Generating Company Private Ltd
- Thai Mozambique Logistica
- Energy Link Ltd, New Zealand
- Ind-Barath Power Infra Limited - India
- Alfred C Toepfer International GmbH - Germany
- Borneo Indobara - Indonesia
- Orica Mining Services - Indonesia
- PTC India Limited - India
- Trasteel International SA, Italy
- Sarangani Energy Corporation, Philippines
- Latin American Coal - Colombia
- Independent Power Producers Association of India
- OPG Power Generation Pvt Ltd - India
- Sical Logistics Limited - India
- Jindal Steel & Power Ltd - India
- Bukit Makmur.PT - Indonesia
- Price Waterhouse Coopers - Russia
- Cement Manufacturers Association - India
- Coastal Gujarat Power Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Aboitiz Power Corporation - Philippines
- GN Power Mariveles Coal Plant, Philippines
- CIMB Investment Bank - Malaysia
- SN Aboitiz Power Inc, Philippines
- London Commodity Brokers - England
- Antam Resourcindo - Indonesia
- Wood Mackenzie - Singapore
- Savvy Resources Ltd - HongKong
- Bukit Baiduri Energy - Indonesia
- Larsen & Toubro Limited - India
- San Jose City I Power Corp, Philippines
- Indika Energy - Indonesia
- Eastern Energy - Thailand
- Meralco Power Generation, Philippines
- Maharashtra Electricity Regulatory Commission - India
- IHS Mccloskey Coal Group - USA
- Intertek Mineral Services - Indonesia
- Directorate Of Revenue Intelligence - India
- Coalindo Energy - Indonesia
- CNBM International Corporation - China
- Siam City Cement PLC, Thailand
- SMC Global Power, Philippines
- Mercuria Energy - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Baramulti Group, Indonesia
- Formosa Plastics Group - Taiwan
- Minerals Council of Australia
- TNB Fuel Sdn Bhd - Malaysia
- Ministry of Transport, Egypt
- Gujarat Electricity Regulatory Commission - India
- Kepco SPC Power Corporation, Philippines
- Petron Corporation, Philippines
- Edison Trading Spa - Italy
- Energy Development Corp, Philippines
- Heidelberg Cement - Germany
- Chettinad Cement Corporation Ltd - India
- Australian Coal Association
- Meenaskhi Energy Private Limited - India
- Wilmar Investment Holdings
- Sojitz Corporation - Japan
- Power Finance Corporation Ltd., India
- Mjunction Services Limited - India
- Goldman Sachs - Singapore
- Bharathi Cement Corporation - India
- Bangladesh Power Developement Board
- Billiton Holdings Pty Ltd - Australia
- Kobexindo Tractors - Indoneisa
- Straits Asia Resources Limited - Singapore
- PNOC Exploration Corporation - Philippines
- Oldendorff Carriers - Singapore
- Asmin Koalindo Tuhup - Indonesia
- Central Java Power - Indonesia
- Sree Jayajothi Cements Limited - India
- Carbofer General Trading SA - India
- MS Steel International - UAE
- Neyveli Lignite Corporation Ltd, - India
- GMR Energy Limited - India
- Medco Energi Mining Internasional
- Planning Commission, India
- The University of Queensland
- Orica Australia Pty. Ltd.
- Semirara Mining and Power Corporation, Philippines
- Samtan Co., Ltd - South Korea
- Singapore Mercantile Exchange
- Lanco Infratech Ltd - India
- Dalmia Cement Bharat India
- Merrill Lynch Commodities Europe
- McConnell Dowell - Australia
- Karaikal Port Pvt Ltd - India
- PowerSource Philippines DevCo
- International Coal Ventures Pvt Ltd - India
- LBH Netherlands Bv - Netherlands
- Parry Sugars Refinery, India
- Rashtriya Ispat Nigam Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Barasentosa Lestari - Indonesia
- Siam City Cement - Thailand
- The State Trading Corporation of India Ltd
- Kumho Petrochemical, South Korea
- Parliament of New Zealand
- Standard Chartered Bank - UAE
- Maheswari Brothers Coal Limited - India
- Semirara Mining Corp, Philippines
- Bhoruka Overseas - Indonesia
- Videocon Industries ltd - India
- Indian Energy Exchange, India
- Indian Oil Corporation Limited
- Krishnapatnam Port Company Ltd. - India
- Commonwealth Bank - Australia
- Ambuja Cements Ltd - India
- Altura Mining Limited, Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Georgia Ports Authority, United States
- Bulk Trading Sa - Switzerland
- TeaM Sual Corporation - Philippines
- Kapuas Tunggal Persada - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- PetroVietnam Power Coal Import and Supply Company
- Bhushan Steel Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Vijayanagar Sugar Pvt Ltd - India
- GAC Shipping (India) Pvt Ltd
- AsiaOL BioFuels Corp., Philippines
- Central Electricity Authority - India
- Manunggal Multi Energi - Indonesia
- Tata Chemicals Ltd - India
- Indo Tambangraya Megah - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Australian Commodity Traders Exchange
- Sinarmas Energy and Mining - Indonesia
- European Bulk Services B.V. - Netherlands
- Kartika Selabumi Mining - Indonesia
- Metalloyd Limited - United Kingdom
- Uttam Galva Steels Limited - India
- Bayan Resources Tbk. - Indonesia
- Indonesian Coal Mining Association
- Agrawal Coal Company - India
- Global Business Power Corporation, Philippines
- Banpu Public Company Limited - Thailand
- Interocean Group of Companies - India
- Indogreen Group - Indonesia
- SMG Consultants - Indonesia
- Madhucon Powers Ltd - India
- VISA Power Limited - India
- ICICI Bank Limited - India
- Globalindo Alam Lestari - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Economic Council, Georgia
- Vedanta Resources Plc - India
- Vizag Seaport Private Limited - India
- India Bulls Power Limited - India
- Bhatia International Limited - India
- Makarim & Taira - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Chamber of Mines of South Africa
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Deloitte Consulting - India
- Toyota Tsusho Corporation, Japan
- Bukit Asam (Persero) Tbk - Indonesia
- Attock Cement Pakistan Limited
- Kideco Jaya Agung - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Anglo American - United Kingdom
- Timah Investasi Mineral - Indoneisa
- Marubeni Corporation - India
- Jorong Barutama Greston.PT - Indonesia
- Sakthi Sugars Limited - India
- Riau Bara Harum - Indonesia
- GVK Power & Infra Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Kohat Cement Company Ltd. - Pakistan
- Star Paper Mills Limited - India
- The Treasury - Australian Government
- ASAPP Information Group - India
- Kaltim Prima Coal - Indonesia
- South Luzon Thermal Energy Corporation
- IEA Clean Coal Centre - UK
- Kalimantan Lumbung Energi - Indonesia
- Port Waratah Coal Services - Australia
- Ministry of Finance - Indonesia
- White Energy Company Limited
- Electricity Generating Authority of Thailand
- Thiess Contractors Indonesia
- Xindia Steels Limited - India
- Mercator Lines Limited - India
- Africa Commodities Group - South Africa
- Coal and Oil Company - UAE
- Global Coal Blending Company Limited - Australia
- Eastern Coal Council - USA
- Bahari Cakrawala Sebuku - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Gujarat Sidhee Cement - India
- Leighton Contractors Pty Ltd - Australia
- Malabar Cements Ltd - India
- Aditya Birla Group - India
- Ceylon Electricity Board - Sri Lanka
- New Zealand Coal & Carbon
- Posco Energy - South Korea
- Grasim Industreis Ltd - India
- Electricity Authority, New Zealand
- Therma Luzon, Inc, Philippines
- Salva Resources Pvt Ltd - India
- Jaiprakash Power Ventures ltd
- Ministry of Mines - Canada
- Rio Tinto Coal - Australia
- Essar Steel Hazira Ltd - India
- Renaissance Capital - South Africa
- Pendopo Energi Batubara - Indonesia
- Simpson Spence & Young - Indonesia
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