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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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Sunday, 08 January 23
ELEVATED COAL PRICE A DRAG ON MARGINS OF DOMESTIC BASE METAL PLAYERS: ICRA
The increased price of coal continue to be a drag on the margin of domestic base metal players with no immediate relief in sight, rating agency ICR ...
Monday, 02 January 23
CHINA’S COAL CONSUMPTION TO PEAK BY 2035: REPORT - REUTERS
China’s primary energy consumption is likely to peak at nearly 6.03 billion tonnes of standard coal between 2030 and 2035, refining giant Chi ...
Thursday, 29 December 22
INDIA'S COAL DEMAND LIKELY TO PEAK BETWEEN 2030-2035: MINISTER - ANI
The demand for coal in India will continue and is likely to peak between 2030-2035, Union Minister of Coal, Mines, and Parliamentary Affairs Pralha ...
Thursday, 29 December 22
RIO TINTO AND PARTNERS COULD RECEIVE AS MUCH AS $450M IN GOVERNMENT COMPENSATION FOR COAL PRICE CAP - THE GUARDIAN
Compensation payments for the Gladstone power plant remain the sticking point in the federal government’s coal price cap compensation negotia ...
Wednesday, 28 December 22
MARKET INSIGHT - INTERMODAL
The United Nations Conference on Trade and Development (UNCTAD) published a Global Trade Update on December 13th highlighting that global trade wou ...
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- GVK Power & Infra Limited - India
- Electricity Authority, New Zealand
- Australian Commodity Traders Exchange
- Krishnapatnam Port Company Ltd. - India
- Vedanta Resources Plc - India
- Kapuas Tunggal Persada - Indonesia
- Toyota Tsusho Corporation, Japan
- Madhucon Powers Ltd - India
- Riau Bara Harum - Indonesia
- Interocean Group of Companies - India
- Kobexindo Tractors - Indoneisa
- VISA Power Limited - India
- Alfred C Toepfer International GmbH - Germany
- White Energy Company Limited
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Global Coal Blending Company Limited - Australia
- Sakthi Sugars Limited - India
- Marubeni Corporation - India
- Cigading International Bulk Terminal - Indonesia
- Grasim Industreis Ltd - India
- Price Waterhouse Coopers - Russia
- Chamber of Mines of South Africa
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Standard Chartered Bank - UAE
- Bukit Asam (Persero) Tbk - Indonesia
- Indika Energy - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Sojitz Corporation - Japan
- PNOC Exploration Corporation - Philippines
- Siam City Cement PLC, Thailand
- Jaiprakash Power Ventures ltd
- Vijayanagar Sugar Pvt Ltd - India
- Formosa Plastics Group - Taiwan
- Gujarat Electricity Regulatory Commission - India
- Samtan Co., Ltd - South Korea
- South Luzon Thermal Energy Corporation
- PowerSource Philippines DevCo
- Australian Coal Association
- London Commodity Brokers - England
- Star Paper Mills Limited - India
- Binh Thuan Hamico - Vietnam
- Directorate General of MIneral and Coal - Indonesia
- SN Aboitiz Power Inc, Philippines
- Thiess Contractors Indonesia
- Global Business Power Corporation, Philippines
- Videocon Industries ltd - India
- Aditya Birla Group - India
- Manunggal Multi Energi - Indonesia
- Deloitte Consulting - India
- Ministry of Finance - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Barasentosa Lestari - Indonesia
- Makarim & Taira - Indonesia
- Siam City Cement - Thailand
- Karaikal Port Pvt Ltd - India
- McConnell Dowell - Australia
- Economic Council, Georgia
- Georgia Ports Authority, United States
- Timah Investasi Mineral - Indoneisa
- Ministry of Mines - Canada
- Savvy Resources Ltd - HongKong
- Heidelberg Cement - Germany
- Bulk Trading Sa - Switzerland
- Independent Power Producers Association of India
- Oldendorff Carriers - Singapore
- Kalimantan Lumbung Energi - Indonesia
- Parliament of New Zealand
- Iligan Light & Power Inc, Philippines
- Aboitiz Power Corporation - Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Sindya Power Generating Company Private Ltd
- Singapore Mercantile Exchange
- Altura Mining Limited, Indonesia
- Bukit Baiduri Energy - Indonesia
- ASAPP Information Group - India
- Chettinad Cement Corporation Ltd - India
- Central Java Power - Indonesia
- San Jose City I Power Corp, Philippines
- New Zealand Coal & Carbon
- Coal and Oil Company - UAE
- Malabar Cements Ltd - India
- Meralco Power Generation, Philippines
- Anglo American - United Kingdom
- Bhoruka Overseas - Indonesia
- Wood Mackenzie - Singapore
- Wilmar Investment Holdings
- Bahari Cakrawala Sebuku - Indonesia
- Intertek Mineral Services - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Leighton Contractors Pty Ltd - Australia
- AsiaOL BioFuels Corp., Philippines
- Thai Mozambique Logistica
- PTC India Limited - India
- Bukit Makmur.PT - Indonesia
- Posco Energy - South Korea
- Planning Commission, India
- Borneo Indobara - Indonesia
- Eastern Coal Council - USA
- Holcim Trading Pte Ltd - Singapore
- Bhatia International Limited - India
- CIMB Investment Bank - Malaysia
- Trasteel International SA, Italy
- Carbofer General Trading SA - India
- Larsen & Toubro Limited - India
- Latin American Coal - Colombia
- Mjunction Services Limited - India
- Bangladesh Power Developement Board
- Simpson Spence & Young - Indonesia
- TeaM Sual Corporation - Philippines
- Bhushan Steel Limited - India
- Jindal Steel & Power Ltd - India
- Commonwealth Bank - Australia
- ICICI Bank Limited - India
- Romanian Commodities Exchange
- SMG Consultants - Indonesia
- Power Finance Corporation Ltd., India
- Rio Tinto Coal - Australia
- Asmin Koalindo Tuhup - Indonesia
- Edison Trading Spa - Italy
- Parry Sugars Refinery, India
- Ind-Barath Power Infra Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Salva Resources Pvt Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Straits Asia Resources Limited - Singapore
- Merrill Lynch Commodities Europe
- Billiton Holdings Pty Ltd - Australia
- Kideco Jaya Agung - Indonesia
- Gujarat Sidhee Cement - India
- Bayan Resources Tbk. - Indonesia
- Goldman Sachs - Singapore
- Mercator Lines Limited - India
- Orica Mining Services - Indonesia
- Metalloyd Limited - United Kingdom
- Vizag Seaport Private Limited - India
- SMC Global Power, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Maheswari Brothers Coal Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Sical Logistics Limited - India
- Uttam Galva Steels Limited - India
- International Coal Ventures Pvt Ltd - India
- Orica Australia Pty. Ltd.
- Dalmia Cement Bharat India
- CNBM International Corporation - China
- Cement Manufacturers Association - India
- Coastal Gujarat Power Limited - India
- Medco Energi Mining Internasional
- The Treasury - Australian Government
- Port Waratah Coal Services - Australia
- Semirara Mining and Power Corporation, Philippines
- Kumho Petrochemical, South Korea
- TNB Fuel Sdn Bhd - Malaysia
- Coalindo Energy - Indonesia
- The University of Queensland
- Sree Jayajothi Cements Limited - India
- IEA Clean Coal Centre - UK
- India Bulls Power Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Eastern Energy - Thailand
- Electricity Generating Authority of Thailand
- Central Electricity Authority - India
- Neyveli Lignite Corporation Ltd, - India
- GMR Energy Limited - India
- Lanco Infratech Ltd - India
- Globalindo Alam Lestari - Indonesia
- Indonesian Coal Mining Association
- Petron Corporation, Philippines
- Indian Oil Corporation Limited
- Therma Luzon, Inc, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Kepco SPC Power Corporation, Philippines
- Indogreen Group - Indonesia
- Minerals Council of Australia
- Sinarmas Energy and Mining - Indonesia
- Mercuria Energy - Indonesia
- Indo Tambangraya Megah - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Ambuja Cements Ltd - India
- Mintek Dendrill Indonesia
- GAC Shipping (India) Pvt Ltd
- Banpu Public Company Limited - Thailand
- Kartika Selabumi Mining - Indonesia
- European Bulk Services B.V. - Netherlands
- Energy Development Corp, Philippines
- Pendopo Energi Batubara - Indonesia
- Baramulti Group, Indonesia
- Sarangani Energy Corporation, Philippines
- Global Green Power PLC Corporation, Philippines
- PetroVietnam Power Coal Import and Supply Company
- OPG Power Generation Pvt Ltd - India
- Renaissance Capital - South Africa
- Indian Energy Exchange, India
- Attock Cement Pakistan Limited
- Africa Commodities Group - South Africa
- Agrawal Coal Company - India
- Semirara Mining Corp, Philippines
- The State Trading Corporation of India Ltd
- Bank of Tokyo Mitsubishi UFJ Ltd
- Meenaskhi Energy Private Limited - India
- Energy Link Ltd, New Zealand
- MS Steel International - UAE
- Essar Steel Hazira Ltd - India
- Tata Chemicals Ltd - India
- Xindia Steels Limited - India
- LBH Netherlands Bv - Netherlands
- IHS Mccloskey Coal Group - USA
- Tamil Nadu electricity Board
- Ministry of Transport, Egypt
- Bharathi Cement Corporation - India
- Petrochimia International Co. Ltd.- Taiwan
- Directorate Of Revenue Intelligence - India
- Kaltim Prima Coal - Indonesia
- Antam Resourcindo - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
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