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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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Thursday, 25 January 24
THE RED SEA ESCALATION IMPLICATIONS ON GLOBAL SEABORNE TRADE - MARIA BERTZELETOU
In recent days, discussions have intensified about the potential impact on the seaborne trade and ton-miles due to the evolving dynamics of market ...
Thursday, 25 January 24
RED SEA SHIPPING DISRUPTIONS KEEP GEOPOLITICAL PREMIUM FOR COMMODITIES - FITCH RATINGS
Shipping disruptions and re-routing away from the Red Sea will maintain the geopolitical premium in the main commodity markets, including for oil a ...
Friday, 19 January 24
INDONESIA TARGETS 710 MLN METRIC TONS COAL OUTPUT IN 2024 AFTER RECORD 2023 - REUTERS
Indonesia, a major thermal coal exporter, aims to produce 710 million metric tons of coal in 2024, its mining minister said on Monday, after postin ...
Friday, 19 January 24
DRUMMOND COLOMBIA COAL OUTPUT ROSE 7.1% IN 2023 - REUTERS
Coal production from miner Drummond’s Colombia operations rose 7.1% in 2023 to 29.5 million metric tons, while exports declined by 2.6% to 27 ...
Friday, 19 January 24
CHINA'S 2023 COAL OUTPUT HITS RECORD HIGH - REUTERS
China’s coal output reached a record high in 2023, data from the statistics bureau showed on Wednesday, amid an ongoing focus on energy secur ...
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- Singapore Mercantile Exchange
- Meralco Power Generation, Philippines
- Electricity Authority, New Zealand
- Intertek Mineral Services - Indonesia
- Merrill Lynch Commodities Europe
- Independent Power Producers Association of India
- Sree Jayajothi Cements Limited - India
- Aboitiz Power Corporation - Philippines
- Planning Commission, India
- Ceylon Electricity Board - Sri Lanka
- Deloitte Consulting - India
- Latin American Coal - Colombia
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- Indian Oil Corporation Limited
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- Holcim Trading Pte Ltd - Singapore
- Semirara Mining and Power Corporation, Philippines
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- Global Green Power PLC Corporation, Philippines
- Coastal Gujarat Power Limited - India
- International Coal Ventures Pvt Ltd - India
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- Metalloyd Limited - United Kingdom
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- Coal and Oil Company - UAE
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- Offshore Bulk Terminal Pte Ltd, Singapore
- Binh Thuan Hamico - Vietnam
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- PowerSource Philippines DevCo
- Economic Council, Georgia
- Formosa Plastics Group - Taiwan
- Siam City Cement PLC, Thailand
- Trasteel International SA, Italy
- Meenaskhi Energy Private Limited - India
- Gujarat Electricity Regulatory Commission - India
- SN Aboitiz Power Inc, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Tamil Nadu electricity Board
- Posco Energy - South Korea
- SMG Consultants - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Edison Trading Spa - Italy
- Jindal Steel & Power Ltd - India
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- Central Electricity Authority - India
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- Xindia Steels Limited - India
- Indian Energy Exchange, India
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- PNOC Exploration Corporation - Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bhushan Steel Limited - India
- Ministry of Transport, Egypt
- Kapuas Tunggal Persada - Indonesia
- Bangladesh Power Developement Board
- Baramulti Group, Indonesia
- The Treasury - Australian Government
- Coalindo Energy - Indonesia
- Globalindo Alam Lestari - Indonesia
- TeaM Sual Corporation - Philippines
- Australian Coal Association
- Riau Bara Harum - Indonesia
- Parliament of New Zealand
- Indika Energy - Indonesia
- Maheswari Brothers Coal Limited - India
- Maharashtra Electricity Regulatory Commission - India
- GVK Power & Infra Limited - India
- Romanian Commodities Exchange
- Sical Logistics Limited - India
- Banpu Public Company Limited - Thailand
- Sojitz Corporation - Japan
- Malabar Cements Ltd - India
- Ministry of Mines - Canada
- Borneo Indobara - Indonesia
- Therma Luzon, Inc, Philippines
- Sindya Power Generating Company Private Ltd
- Eastern Energy - Thailand
- Commonwealth Bank - Australia
- Pipit Mutiara Jaya. PT, Indonesia
- Anglo American - United Kingdom
- Thiess Contractors Indonesia
- Sakthi Sugars Limited - India
- Altura Mining Limited, Indonesia
- Georgia Ports Authority, United States
- Rashtriya Ispat Nigam Limited - India
- The University of Queensland
- Wilmar Investment Holdings
- Jaiprakash Power Ventures ltd
- Asmin Koalindo Tuhup - Indonesia
- Grasim Industreis Ltd - India
- Kepco SPC Power Corporation, Philippines
- White Energy Company Limited
- GAC Shipping (India) Pvt Ltd
- Goldman Sachs - Singapore
- Karbindo Abesyapradhi - Indoneisa
- Karaikal Port Pvt Ltd - India
- London Commodity Brokers - England
- The State Trading Corporation of India Ltd
- Toyota Tsusho Corporation, Japan
- Heidelberg Cement - Germany
- Makarim & Taira - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- GN Power Mariveles Coal Plant, Philippines
- Miang Besar Coal Terminal - Indonesia
- Star Paper Mills Limited - India
- GMR Energy Limited - India
- Renaissance Capital - South Africa
- Dalmia Cement Bharat India
- Siam City Cement - Thailand
- Jorong Barutama Greston.PT - Indonesia
- Kumho Petrochemical, South Korea
- Interocean Group of Companies - India
- IHS Mccloskey Coal Group - USA
- Kalimantan Lumbung Energi - Indonesia
- Petron Corporation, Philippines
- CIMB Investment Bank - Malaysia
- Eastern Coal Council - USA
- Price Waterhouse Coopers - Russia
- Essar Steel Hazira Ltd - India
- Global Coal Blending Company Limited - Australia
- Timah Investasi Mineral - Indoneisa
- Videocon Industries ltd - India
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- Electricity Generating Authority of Thailand
- AsiaOL BioFuels Corp., Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Cement Manufacturers Association - India
- Barasentosa Lestari - Indonesia
- India Bulls Power Limited - India
- Agrawal Coal Company - India
- European Bulk Services B.V. - Netherlands
- Port Waratah Coal Services - Australia
- Iligan Light & Power Inc, Philippines
- Pendopo Energi Batubara - Indonesia
- Indo Tambangraya Megah - Indonesia
- Uttam Galva Steels Limited - India
- ASAPP Information Group - India
- Ministry of Finance - Indonesia
- Bharathi Cement Corporation - India
- Marubeni Corporation - India
- Sarangani Energy Corporation, Philippines
- Bulk Trading Sa - Switzerland
- Medco Energi Mining Internasional
- Bahari Cakrawala Sebuku - Indonesia
- Kideco Jaya Agung - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Thai Mozambique Logistica
- Krishnapatnam Port Company Ltd. - India
- Billiton Holdings Pty Ltd - Australia
- Australian Commodity Traders Exchange
- Bukit Asam (Persero) Tbk - Indonesia
- Energy Link Ltd, New Zealand
- Mjunction Services Limited - India
- IEA Clean Coal Centre - UK
- Indonesian Coal Mining Association
- South Luzon Thermal Energy Corporation
- Orica Mining Services - Indonesia
- Tata Chemicals Ltd - India
- Power Finance Corporation Ltd., India
- Gujarat Sidhee Cement - India
- Carbofer General Trading SA - India
- Kohat Cement Company Ltd. - Pakistan
- Wood Mackenzie - Singapore
- Mercator Lines Limited - India
- CNBM International Corporation - China
- Alfred C Toepfer International GmbH - Germany
- Gujarat Mineral Development Corp Ltd - India
- PTC India Limited - India
- Africa Commodities Group - South Africa
- OPG Power Generation Pvt Ltd - India
- Cigading International Bulk Terminal - Indonesia
- MS Steel International - UAE
- Orica Australia Pty. Ltd.
- Kartika Selabumi Mining - Indonesia
- Directorate Of Revenue Intelligence - India
- Salva Resources Pvt Ltd - India
- Bhoruka Overseas - Indonesia
- Ambuja Cements Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Savvy Resources Ltd - HongKong
- Minerals Council of Australia
- Chettinad Cement Corporation Ltd - India
- Kobexindo Tractors - Indoneisa
- SMC Global Power, Philippines
- New Zealand Coal & Carbon
- Mercuria Energy - Indonesia
- Antam Resourcindo - Indonesia
- Semirara Mining Corp, Philippines
- Bukit Makmur.PT - Indonesia
- Samtan Co., Ltd - South Korea
- Lanco Infratech Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Vedanta Resources Plc - India
- LBH Netherlands Bv - Netherlands
- Larsen & Toubro Limited - India
- Indogreen Group - Indonesia
- ICICI Bank Limited - India
- Manunggal Multi Energi - Indonesia
- Parry Sugars Refinery, India
- Central Java Power - Indonesia
- Chamber of Mines of South Africa
- Kaltim Prima Coal - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bhatia International Limited - India
- Energy Development Corp, Philippines
- Vizag Seaport Private Limited - India
- Sinarmas Energy and Mining - Indonesia
- Attock Cement Pakistan Limited
- Dr Ramakrishna Prasad Power Pvt Ltd - India
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