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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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Saturday, 18 March 23
HEDGE TO OFFSET LNG VOLATILITY, TRADERS TOLD - BALTIC EXCHANGE
A shift in imports from Asia to Europe led to significant volatility in liquefied natural gas shipping last year, prompting industry experts to urg ...
Friday, 17 March 23
INDONESIAN COAL PRICE REFERENCE UP AROUND 2.17% IN MARCH 2023
COALspot.com: Indonesian Coal Price Reference up around 2.17% in March 2023.
According to the new HBA regulation No. 41.K/MB.0 ...
Saturday, 11 March 23
MARKET INSIGHT - INTERMODAL
Uncertainty over the recovery of Chinese demand, demand destruction in Europe, as well as weather conditions will pivot the LNG market this summer. ...
Wednesday, 08 March 23
INDONESIAN COAL REFERENCE PRICE FORMULA HAS OFFICIALLY CHANGED
Indonesian Minister of Energy and Mineral Resources has officially changed the guideline for determining the benchmark price for the sale of coal c ...
Thursday, 02 March 23
INDIA'S SEABORNE CRUDE OIL IMPORTS IN 2022 INCREASED BY 11.5% YOY - BANCHERO COSTA
2022 has turned out to be a very positive year for crude oil trade, despite the surging oil prices and risks of economic recession, Banchero Costa ...
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- Makarim & Taira - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Wilmar Investment Holdings
- Interocean Group of Companies - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Energy Development Corp, Philippines
- Malabar Cements Ltd - India
- Sarangani Energy Corporation, Philippines
- Ministry of Mines - Canada
- Samtan Co., Ltd - South Korea
- GVK Power & Infra Limited - India
- Karaikal Port Pvt Ltd - India
- Mercator Lines Limited - India
- Coal and Oil Company - UAE
- Orica Australia Pty. Ltd.
- Attock Cement Pakistan Limited
- Antam Resourcindo - Indonesia
- Marubeni Corporation - India
- Ceylon Electricity Board - Sri Lanka
- Videocon Industries ltd - India
- Kobexindo Tractors - Indoneisa
- Thai Mozambique Logistica
- Carbofer General Trading SA - India
- Australian Commodity Traders Exchange
- Economic Council, Georgia
- GAC Shipping (India) Pvt Ltd
- Asmin Koalindo Tuhup - Indonesia
- Dalmia Cement Bharat India
- Salva Resources Pvt Ltd - India
- Aditya Birla Group - India
- OPG Power Generation Pvt Ltd - India
- Sree Jayajothi Cements Limited - India
- Alfred C Toepfer International GmbH - Germany
- CIMB Investment Bank - Malaysia
- Central Electricity Authority - India
- European Bulk Services B.V. - Netherlands
- Indika Energy - Indonesia
- Coastal Gujarat Power Limited - India
- Commonwealth Bank - Australia
- Ministry of Transport, Egypt
- Simpson Spence & Young - Indonesia
- Parry Sugars Refinery, India
- Bayan Resources Tbk. - Indonesia
- Toyota Tsusho Corporation, Japan
- Ind-Barath Power Infra Limited - India
- Larsen & Toubro Limited - India
- Indian Oil Corporation Limited
- Australian Coal Association
- Electricity Authority, New Zealand
- Goldman Sachs - Singapore
- Electricity Generating Authority of Thailand
- Leighton Contractors Pty Ltd - Australia
- Posco Energy - South Korea
- McConnell Dowell - Australia
- Independent Power Producers Association of India
- Bhatia International Limited - India
- ASAPP Information Group - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Tata Chemicals Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Savvy Resources Ltd - HongKong
- India Bulls Power Limited - India
- Holcim Trading Pte Ltd - Singapore
- San Jose City I Power Corp, Philippines
- Sinarmas Energy and Mining - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Intertek Mineral Services - Indonesia
- Grasim Industreis Ltd - India
- ICICI Bank Limited - India
- Cement Manufacturers Association - India
- Bukit Makmur.PT - Indonesia
- Georgia Ports Authority, United States
- Bahari Cakrawala Sebuku - Indonesia
- Iligan Light & Power Inc, Philippines
- Standard Chartered Bank - UAE
- Kideco Jaya Agung - Indonesia
- Sakthi Sugars Limited - India
- Romanian Commodities Exchange
- Tamil Nadu electricity Board
- Banpu Public Company Limited - Thailand
- Pipit Mutiara Jaya. PT, Indonesia
- Global Green Power PLC Corporation, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Trasteel International SA, Italy
- Manunggal Multi Energi - Indonesia
- Rio Tinto Coal - Australia
- Jaiprakash Power Ventures ltd
- PNOC Exploration Corporation - Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Mercuria Energy - Indonesia
- Madhucon Powers Ltd - India
- Lanco Infratech Ltd - India
- Sojitz Corporation - Japan
- Ministry of Finance - Indonesia
- Borneo Indobara - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- SMC Global Power, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Gujarat Sidhee Cement - India
- Edison Trading Spa - Italy
- Straits Asia Resources Limited - Singapore
- CNBM International Corporation - China
- Ambuja Cements Ltd - India
- Semirara Mining Corp, Philippines
- Global Coal Blending Company Limited - Australia
- Thiess Contractors Indonesia
- Bharathi Cement Corporation - India
- Star Paper Mills Limited - India
- Globalindo Alam Lestari - Indonesia
- SN Aboitiz Power Inc, Philippines
- Directorate Of Revenue Intelligence - India
- Kumho Petrochemical, South Korea
- Petrochimia International Co. Ltd.- Taiwan
- Binh Thuan Hamico - Vietnam
- Indo Tambangraya Megah - Indonesia
- Jindal Steel & Power Ltd - India
- Kartika Selabumi Mining - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- MS Steel International - UAE
- Rashtriya Ispat Nigam Limited - India
- Sindya Power Generating Company Private Ltd
- Kaltim Prima Coal - Indonesia
- Indonesian Coal Mining Association
- Agrawal Coal Company - India
- Global Business Power Corporation, Philippines
- New Zealand Coal & Carbon
- IHS Mccloskey Coal Group - USA
- Essar Steel Hazira Ltd - India
- SMG Consultants - Indonesia
- Siam City Cement - Thailand
- Riau Bara Harum - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Wood Mackenzie - Singapore
- Vizag Seaport Private Limited - India
- Port Waratah Coal Services - Australia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Indian Energy Exchange, India
- South Luzon Thermal Energy Corporation
- Singapore Mercantile Exchange
- Medco Energi Mining Internasional
- Kepco SPC Power Corporation, Philippines
- Timah Investasi Mineral - Indoneisa
- Anglo American - United Kingdom
- Bulk Trading Sa - Switzerland
- International Coal Ventures Pvt Ltd - India
- Formosa Plastics Group - Taiwan
- Altura Mining Limited, Indonesia
- Power Finance Corporation Ltd., India
- Parliament of New Zealand
- Krishnapatnam Port Company Ltd. - India
- Eastern Coal Council - USA
- Siam City Cement PLC, Thailand
- Meralco Power Generation, Philippines
- Coalindo Energy - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Mjunction Services Limited - India
- AsiaOL BioFuels Corp., Philippines
- Energy Link Ltd, New Zealand
- GMR Energy Limited - India
- TeaM Sual Corporation - Philippines
- Orica Mining Services - Indonesia
- Bukit Baiduri Energy - Indonesia
- Minerals Council of Australia
- LBH Netherlands Bv - Netherlands
- Baramulti Group, Indonesia
- Chamber of Mines of South Africa
- Therma Luzon, Inc, Philippines
- Bhushan Steel Limited - India
- The University of Queensland
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- The Treasury - Australian Government
- VISA Power Limited - India
- Africa Commodities Group - South Africa
- Sical Logistics Limited - India
- Planning Commission, India
- Meenaskhi Energy Private Limited - India
- Metalloyd Limited - United Kingdom
- Directorate General of MIneral and Coal - Indonesia
- Merrill Lynch Commodities Europe
- PowerSource Philippines DevCo
- Heidelberg Cement - Germany
- Pendopo Energi Batubara - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- TNB Fuel Sdn Bhd - Malaysia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bangladesh Power Developement Board
- Latin American Coal - Colombia
- Uttam Galva Steels Limited - India
- Aboitiz Power Corporation - Philippines
- Barasentosa Lestari - Indonesia
- Indogreen Group - Indonesia
- Oldendorff Carriers - Singapore
- Gujarat Mineral Development Corp Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Central Java Power - Indonesia
- Renaissance Capital - South Africa
- Billiton Holdings Pty Ltd - Australia
- IEA Clean Coal Centre - UK
- Bhoruka Overseas - Indonesia
- Eastern Energy - Thailand
- Offshore Bulk Terminal Pte Ltd, Singapore
- White Energy Company Limited
- Vedanta Resources Plc - India
- London Commodity Brokers - England
- Deloitte Consulting - India
- Semirara Mining and Power Corporation, Philippines
- Chettinad Cement Corporation Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- The State Trading Corporation of India Ltd
- Xindia Steels Limited - India
- Maheswari Brothers Coal Limited - India
- Mintek Dendrill Indonesia
- PTC India Limited - India
- Price Waterhouse Coopers - Russia
- Miang Besar Coal Terminal - Indonesia
- Petron Corporation, Philippines
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