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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, 23 February 24
STRONG OUTLOOK FOR THE TANKER MARKET IN 2024 AND BEYOND - DNV
Several factors have aligned over the past two years to create a robust and profitable market for tanker owners, which is expected to drive newbuil ...
Friday, 23 February 24
AUSTRALIAN COAL FLOWS TO ASIA HOVER ABOVE LAST YEAR’S VOLUME TONNES - SIGNAL GROUP
In the final days of February, the dry bulk freight market appeared to maintain a relatively stable momentum, particularly evident in the large ves ...
Friday, 23 February 24
RUSSIAN COAL SHIPMENTS FALL 14% AS SANCTIONS BITE - BIMCO
During the first seven weeks of 2024, Russian coal shipments have fallen 14% y/y. Volumes have gradually declined since October 2023 when logistica ...
Thursday, 22 February 24
BIMCO PUBLISHES SHIP FINANCING FORMS TO ENSURE UNINTERRUPTED USE OF SHIPS
BIMCO has published two standard Quiet Enjoyment Letters (QELs), the first standard form QELs available to the industry, to offer a tool that can e ...
Monday, 19 February 24
METALS INVESTMENT: THE DARKEST HOUR IS JUST BEFORE THE DAWN - WOOD MACKENZIE
Things often seem at their worst just before they get better. In terms of meeting our net zero 2050 scenario, we’ve reached a watershed momen ...
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- Romanian Commodities Exchange
- Timah Investasi Mineral - Indoneisa
- Coalindo Energy - Indonesia
- Metalloyd Limited - United Kingdom
- The Treasury - Australian Government
- TNB Fuel Sdn Bhd - Malaysia
- Tamil Nadu electricity Board
- Gujarat Electricity Regulatory Commission - India
- Wilmar Investment Holdings
- Neyveli Lignite Corporation Ltd, - India
- Videocon Industries ltd - India
- India Bulls Power Limited - India
- Electricity Generating Authority of Thailand
- Ministry of Mines - Canada
- Agrawal Coal Company - India
- Therma Luzon, Inc, Philippines
- Kaltim Prima Coal - Indonesia
- LBH Netherlands Bv - Netherlands
- Iligan Light & Power Inc, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Global Business Power Corporation, Philippines
- GAC Shipping (India) Pvt Ltd
- Eastern Coal Council - USA
- Leighton Contractors Pty Ltd - Australia
- Grasim Industreis Ltd - India
- Jindal Steel & Power Ltd - India
- Independent Power Producers Association of India
- Baramulti Group, Indonesia
- San Jose City I Power Corp, Philippines
- Anglo American - United Kingdom
- Meenaskhi Energy Private Limited - India
- SMG Consultants - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Ind-Barath Power Infra Limited - India
- Semirara Mining Corp, Philippines
- Thai Mozambique Logistica
- Indian Energy Exchange, India
- Planning Commission, India
- Altura Mining Limited, Indonesia
- Economic Council, Georgia
- Indonesian Coal Mining Association
- Commonwealth Bank - Australia
- Toyota Tsusho Corporation, Japan
- Cigading International Bulk Terminal - Indonesia
- Karaikal Port Pvt Ltd - India
- Mintek Dendrill Indonesia
- Attock Cement Pakistan Limited
- Directorate General of MIneral and Coal - Indonesia
- Deloitte Consulting - India
- Gujarat Mineral Development Corp Ltd - India
- Eastern Energy - Thailand
- PNOC Exploration Corporation - Philippines
- Kobexindo Tractors - Indoneisa
- MS Steel International - UAE
- Lanco Infratech Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Aboitiz Power Corporation - Philippines
- SN Aboitiz Power Inc, Philippines
- Heidelberg Cement - Germany
- Mercuria Energy - Indonesia
- Dalmia Cement Bharat India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Kapuas Tunggal Persada - Indonesia
- London Commodity Brokers - England
- Xindia Steels Limited - India
- Parliament of New Zealand
- Bhoruka Overseas - Indonesia
- Madhucon Powers Ltd - India
- Vedanta Resources Plc - India
- Marubeni Corporation - India
- Thiess Contractors Indonesia
- Directorate Of Revenue Intelligence - India
- South Luzon Thermal Energy Corporation
- Straits Asia Resources Limited - Singapore
- Bhushan Steel Limited - India
- Wood Mackenzie - Singapore
- VISA Power Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bahari Cakrawala Sebuku - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Posco Energy - South Korea
- Bulk Trading Sa - Switzerland
- Makarim & Taira - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Semirara Mining and Power Corporation, Philippines
- Sical Logistics Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Cement Manufacturers Association - India
- ICICI Bank Limited - India
- Trasteel International SA, Italy
- Billiton Holdings Pty Ltd - Australia
- Minerals Council of Australia
- Central Java Power - Indonesia
- Sinarmas Energy and Mining - Indonesia
- European Bulk Services B.V. - Netherlands
- Holcim Trading Pte Ltd - Singapore
- PowerSource Philippines DevCo
- Power Finance Corporation Ltd., India
- Ambuja Cements Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Sindya Power Generating Company Private Ltd
- Bangladesh Power Developement Board
- SMC Global Power, Philippines
- Goldman Sachs - Singapore
- Latin American Coal - Colombia
- Meralco Power Generation, Philippines
- Kepco SPC Power Corporation, Philippines
- Ceylon Electricity Board - Sri Lanka
- Bukit Asam (Persero) Tbk - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- New Zealand Coal & Carbon
- Jaiprakash Power Ventures ltd
- Formosa Plastics Group - Taiwan
- Petrochimia International Co. Ltd.- Taiwan
- GVK Power & Infra Limited - India
- Krishnapatnam Port Company Ltd. - India
- AsiaOL BioFuels Corp., Philippines
- Merrill Lynch Commodities Europe
- The State Trading Corporation of India Ltd
- Antam Resourcindo - Indonesia
- Vizag Seaport Private Limited - India
- The University of Queensland
- CNBM International Corporation - China
- Kartika Selabumi Mining - Indonesia
- Australian Commodity Traders Exchange
- IHS Mccloskey Coal Group - USA
- Savvy Resources Ltd - HongKong
- Malabar Cements Ltd - India
- OPG Power Generation Pvt Ltd - India
- Sakthi Sugars Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Standard Chartered Bank - UAE
- Electricity Authority, New Zealand
- Singapore Mercantile Exchange
- ASAPP Information Group - India
- Star Paper Mills Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Global Coal Blending Company Limited - Australia
- Indo Tambangraya Megah - Indonesia
- Energy Development Corp, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Simpson Spence & Young - Indonesia
- CIMB Investment Bank - Malaysia
- Kideco Jaya Agung - Indonesia
- Bukit Makmur.PT - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Petron Corporation, Philippines
- Pendopo Energi Batubara - Indonesia
- Kumho Petrochemical, South Korea
- Price Waterhouse Coopers - Russia
- Bayan Resources Tbk. - Indonesia
- Tata Chemicals Ltd - India
- International Coal Ventures Pvt Ltd - India
- Barasentosa Lestari - Indonesia
- Bhatia International Limited - India
- GMR Energy Limited - India
- Interocean Group of Companies - India
- Indogreen Group - Indonesia
- Maheswari Brothers Coal Limited - India
- Coastal Gujarat Power Limited - India
- Sree Jayajothi Cements Limited - India
- Siam City Cement - Thailand
- Oldendorff Carriers - Singapore
- Rashtriya Ispat Nigam Limited - India
- McConnell Dowell - Australia
- Larsen & Toubro Limited - India
- Bharathi Cement Corporation - India
- Intertek Mineral Services - Indonesia
- Georgia Ports Authority, United States
- Medco Energi Mining Internasional
- Energy Link Ltd, New Zealand
- Siam City Cement PLC, Thailand
- Renaissance Capital - South Africa
- TeaM Sual Corporation - Philippines
- Chettinad Cement Corporation Ltd - India
- Orica Australia Pty. Ltd.
- Parry Sugars Refinery, India
- Australian Coal Association
- Coal and Oil Company - UAE
- Chamber of Mines of South Africa
- Binh Thuan Hamico - Vietnam
- Sojitz Corporation - Japan
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Gujarat Sidhee Cement - India
- PTC India Limited - India
- Rio Tinto Coal - Australia
- Uttam Galva Steels Limited - India
- White Energy Company Limited
- Riau Bara Harum - Indonesia
- Samtan Co., Ltd - South Korea
- Ministry of Finance - Indonesia
- Sarangani Energy Corporation, Philippines
- Indian Oil Corporation Limited
- Port Waratah Coal Services - Australia
- Edison Trading Spa - Italy
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Salva Resources Pvt Ltd - India
- Essar Steel Hazira Ltd - India
- Mjunction Services Limited - India
- Aditya Birla Group - India
- Miang Besar Coal Terminal - Indonesia
- Mercator Lines Limited - India
- Global Green Power PLC Corporation, Philippines
- Carbofer General Trading SA - India
- Banpu Public Company Limited - Thailand
- Indika Energy - Indonesia
- Bukit Baiduri Energy - Indonesia
- IEA Clean Coal Centre - UK
- Manunggal Multi Energi - Indonesia
- Africa Commodities Group - South Africa
- PetroVietnam Power Coal Import and Supply Company
- Globalindo Alam Lestari - Indonesia
- Borneo Indobara - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Ministry of Transport, Egypt
- Orica Mining Services - Indonesia
- Central Electricity Authority - India
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