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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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Friday, 02 August 24
COAL MARKET DEVELOPMENTS: FALLING PRICES AMID RECORD-HIGH OUTPUT - WORLD BANK
Coal prices inched up in May (m/m) following an 8 percent decline in 2024Q1. The Australian and South African benchmarks have plummeted more ...
Friday, 26 July 24
FUELEU MARITME IS COMING. IS YOUR CHARTERPARTY READY? - GARD
With less than six months to implementation of FuelEU Maritime in EU and EEA trades, there has been little published advice regarding how to alloca ...
Thursday, 04 July 24
INDIA'S COAL PRODUCTION RISES 14% IN JUNE - PTI
The country’s coal production rose by 14.49% to 84.63 million tonne (MT) in June. The country’s coal output was 73.92 MT in June last f ...
Tuesday, 02 July 24
NTPC CAPTIVE COAL OUTPUT GROWS 15% IN Q1; DESPATCH RISES 17%
State-owned NTPC on Monday reported a 15 per cent year-on-year increase in the production of coal from captives mines to 9.862 metric million tonne ...
Friday, 28 June 24
KOSPO INVITED BIDS FOR 400,000 MT OF MINIMUM 4000 NCV COAL FOR FIVE YEARS
Korea Southern Power Co., Ltd. (KOSPO), is inviting bids for total 400,000 MT of Low Calorific Value Coal for 5 years starting from July 2024 until ...
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- The State Trading Corporation of India Ltd
- Power Finance Corporation Ltd., India
- Global Business Power Corporation, Philippines
- Indonesian Coal Mining Association
- Indo Tambangraya Megah - Indonesia
- TeaM Sual Corporation - Philippines
- Sojitz Corporation - Japan
- Eastern Coal Council - USA
- Agrawal Coal Company - India
- Siam City Cement PLC, Thailand
- Directorate General of MIneral and Coal - Indonesia
- Anglo American - United Kingdom
- Bayan Resources Tbk. - Indonesia
- Riau Bara Harum - Indonesia
- Intertek Mineral Services - Indonesia
- Georgia Ports Authority, United States
- Meenaskhi Energy Private Limited - India
- Mjunction Services Limited - India
- GAC Shipping (India) Pvt Ltd
- Leighton Contractors Pty Ltd - Australia
- Sree Jayajothi Cements Limited - India
- Dalmia Cement Bharat India
- SN Aboitiz Power Inc, Philippines
- Straits Asia Resources Limited - Singapore
- Wilmar Investment Holdings
- Heidelberg Cement - Germany
- Bukit Baiduri Energy - Indonesia
- Energy Link Ltd, New Zealand
- Orica Mining Services - Indonesia
- Alfred C Toepfer International GmbH - Germany
- ICICI Bank Limited - India
- Renaissance Capital - South Africa
- Directorate Of Revenue Intelligence - India
- IEA Clean Coal Centre - UK
- Pipit Mutiara Jaya. PT, Indonesia
- Aboitiz Power Corporation - Philippines
- Minerals Council of Australia
- European Bulk Services B.V. - Netherlands
- Global Coal Blending Company Limited - Australia
- Holcim Trading Pte Ltd - Singapore
- Jindal Steel & Power Ltd - India
- Parliament of New Zealand
- Attock Cement Pakistan Limited
- Binh Thuan Hamico - Vietnam
- Aditya Birla Group - India
- Gujarat Sidhee Cement - India
- Videocon Industries ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Kohat Cement Company Ltd. - Pakistan
- London Commodity Brokers - England
- Merrill Lynch Commodities Europe
- Oldendorff Carriers - Singapore
- SMC Global Power, Philippines
- Central Electricity Authority - India
- IHS Mccloskey Coal Group - USA
- CIMB Investment Bank - Malaysia
- ASAPP Information Group - India
- OPG Power Generation Pvt Ltd - India
- Tata Chemicals Ltd - India
- Vizag Seaport Private Limited - India
- Cement Manufacturers Association - India
- Sical Logistics Limited - India
- San Jose City I Power Corp, Philippines
- Economic Council, Georgia
- Ambuja Cements Ltd - India
- Simpson Spence & Young - Indonesia
- Singapore Mercantile Exchange
- Meralco Power Generation, Philippines
- Indian Energy Exchange, India
- Malabar Cements Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Star Paper Mills Limited - India
- Tamil Nadu electricity Board
- Coalindo Energy - Indonesia
- Kumho Petrochemical, South Korea
- Thai Mozambique Logistica
- Africa Commodities Group - South Africa
- Coastal Gujarat Power Limited - India
- Formosa Plastics Group - Taiwan
- Siam City Cement - Thailand
- Petron Corporation, Philippines
- Trasteel International SA, Italy
- Essar Steel Hazira Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Ministry of Mines - Canada
- Indika Energy - Indonesia
- Commonwealth Bank - Australia
- Port Waratah Coal Services - Australia
- Chettinad Cement Corporation Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- LBH Netherlands Bv - Netherlands
- Interocean Group of Companies - India
- Bulk Trading Sa - Switzerland
- South Luzon Thermal Energy Corporation
- Asmin Koalindo Tuhup - Indonesia
- Sarangani Energy Corporation, Philippines
- Kaltim Prima Coal - Indonesia
- Bhatia International Limited - India
- Sindya Power Generating Company Private Ltd
- Kartika Selabumi Mining - Indonesia
- Ind-Barath Power Infra Limited - India
- Marubeni Corporation - India
- Medco Energi Mining Internasional
- Iligan Light & Power Inc, Philippines
- McConnell Dowell - Australia
- Standard Chartered Bank - UAE
- Ministry of Transport, Egypt
- CNBM International Corporation - China
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Timah Investasi Mineral - Indoneisa
- Banpu Public Company Limited - Thailand
- Barasentosa Lestari - Indonesia
- Therma Luzon, Inc, Philippines
- Bharathi Cement Corporation - India
- Coal and Oil Company - UAE
- India Bulls Power Limited - India
- Toyota Tsusho Corporation, Japan
- Kideco Jaya Agung - Indonesia
- Orica Australia Pty. Ltd.
- Global Green Power PLC Corporation, Philippines
- Bhushan Steel Limited - India
- SMG Consultants - Indonesia
- Bhoruka Overseas - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Karaikal Port Pvt Ltd - India
- Madhucon Powers Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Savvy Resources Ltd - HongKong
- Rashtriya Ispat Nigam Limited - India
- The University of Queensland
- Offshore Bulk Terminal Pte Ltd, Singapore
- Grasim Industreis Ltd - India
- Australian Commodity Traders Exchange
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Maheswari Brothers Coal Limited - India
- Makarim & Taira - Indonesia
- Central Java Power - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Parry Sugars Refinery, India
- Australian Coal Association
- Deloitte Consulting - India
- Electricity Authority, New Zealand
- Bahari Cakrawala Sebuku - Indonesia
- Sinarmas Energy and Mining - Indonesia
- GMR Energy Limited - India
- International Coal Ventures Pvt Ltd - India
- Kobexindo Tractors - Indoneisa
- Carbofer General Trading SA - India
- PetroVietnam Power Coal Import and Supply Company
- Salva Resources Pvt Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Kepco SPC Power Corporation, Philippines
- Planning Commission, India
- Mercuria Energy - Indonesia
- Vedanta Resources Plc - India
- Electricity Generating Authority of Thailand
- PTC India Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Latin American Coal - Colombia
- VISA Power Limited - India
- New Zealand Coal & Carbon
- Chamber of Mines of South Africa
- Edison Trading Spa - Italy
- Bangladesh Power Developement Board
- Eastern Energy - Thailand
- Bank of Tokyo Mitsubishi UFJ Ltd
- Goldman Sachs - Singapore
- MS Steel International - UAE
- TNB Fuel Sdn Bhd - Malaysia
- Samtan Co., Ltd - South Korea
- Indian Oil Corporation Limited
- The Treasury - Australian Government
- Neyveli Lignite Corporation Ltd, - India
- Gujarat Mineral Development Corp Ltd - India
- Altura Mining Limited, Indonesia
- Borneo Indobara - Indonesia
- Posco Energy - South Korea
- Mercator Lines Limited - India
- Jaiprakash Power Ventures ltd
- Lanco Infratech Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Ministry of Finance - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Uttam Galva Steels Limited - India
- Krishnapatnam Port Company Ltd. - India
- Gujarat Electricity Regulatory Commission - India
- Mintek Dendrill Indonesia
- Billiton Holdings Pty Ltd - Australia
- Indogreen Group - Indonesia
- Wood Mackenzie - Singapore
- Pendopo Energi Batubara - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Metalloyd Limited - United Kingdom
- Energy Development Corp, Philippines
- Bukit Makmur.PT - Indonesia
- Antam Resourcindo - Indonesia
- Baramulti Group, Indonesia
- White Energy Company Limited
- Thiess Contractors Indonesia
- Rio Tinto Coal - Australia
- Globalindo Alam Lestari - Indonesia
- Sakthi Sugars Limited - India
- Miang Besar Coal Terminal - Indonesia
- Romanian Commodities Exchange
- Ceylon Electricity Board - Sri Lanka
- Semirara Mining Corp, Philippines
- GVK Power & Infra Limited - India
- PowerSource Philippines DevCo
- Xindia Steels Limited - India
- Manunggal Multi Energi - Indonesia
- PNOC Exploration Corporation - Philippines
- AsiaOL BioFuels Corp., Philippines
- Price Waterhouse Coopers - Russia
- Semirara Mining and Power Corporation, Philippines
- Independent Power Producers Association of India
- Larsen & Toubro Limited - India
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