Bunker gasoline gross sales in Singapore rose 7.7% month on month to three.77 million mt in March, 10.2% decrease 12 months on 12 months, in keeping with preliminary knowledge by the Maritime and Port Authority of Singapore April 13.
Gross sales of each low and better sulfur gasoline oil bunkers in March reversed double-digit declines from the earlier month, MPA knowledge additionally confirmed, amid steadier demand in direction of end-March onwards.
In accordance with merchants polled by S&P International Commodity Insights, the rise in March bunker gross sales was aligned with expectations as freight exercise was sure to choose up following the lull in February in the course of the Lunar New 12 months festive season.
The variety of bunker-only calls rose 7.7% on month to three,020 in March, however a 12.7% decline from the earlier 12 months, MPA knowledge confirmed, whereas whole vessel arrivals rose 13.5% on month to an 11-month excessive of seven,307 in March.
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Gross sales of the Worldwide Maritime Group-compliant grades, which embody 100 CST, 180 CST, 380 CST and 500 CST bunker gasoline, gained 4.9% on the month to 2.397 million mt in March, rising for the primary time after 4 consecutive months of decline since October.
LSFO gross sales accounted for 63.6% of the full, 1.7 share factors beneath February and three.9 share factors decrease on 12 months.
Agency Singapore-delivered marine gasoline 0.5percentS bunker premiums amid less-than-ample upstream inventories slowed demand throughout most of March, whereas a rebound in demand was reportedly seen solely round late-March with above-average volumes of immediate inquiries, native merchants stated.
The delivered LSFO bunker unfold between Singapore and Zhoushan narrowed from a median of $6.56/mt in February to minus 48 cents/mt in March, S&P International knowledge confirmed, as costs on the North Asia bunker hub grew much less aggressive owing to tighter cargo availabilities.
Gross sales of excessive sulfur bunker gasoline, which incorporates 180 CST, 380 CST and 500 CST bunker gasoline, climbed 17.7% to 1.088 million mt in March, in keeping with MPA knowledge.
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Features in HSFO gross sales have crushed merchants’ estimates, as surging costs of the delivered grade had led some patrons to attenuate spot necessities on the port of Singapore.
“HSFO spot demand in March was uneven and fluctuates extensively… Nevertheless, vessels would nonetheless want to satisfy necessities,” a Singapore-based bunker provider stated.
But, the outlook for April HSFO bunker gross sales remained bleak amid the latest gasoline oil contamination points detected since March, which market sources stated have led patrons to divert demand to different Asian ports, reminiscent of Hong Kong and South Korea.
Gross sales of low sulfur marine gasoil — which has a most sulfur content material of 0.1% — slipped 3.1% on month and 14.8% on 12 months to 271,800 mt in March.
Strengthening premiums of the gasoil advanced and the value volatility have subdued demand for the delivered grade, merchants stated, although some suppliers have reportedly not confronted any loading points with enough LSMGO ex-wharf parcels for downstream provide.
Springtime refinery turnaround season in South Korea has tightened regional provide of the sunshine distillate advanced since March, and is anticipated to normalize as refineries are prone to restart operations round mid-April onwards, market sources stated.
Premiums of Singapore-delivered low sulfur marine gasoil, with a sulfur content material of 0.1%, differential in opposition to the benchmark FOB Singapore 10 ppm sulfur gasoil assessments averaged $12.24/mt in March, above the $8.61/mt in February, S&P International knowledge confirmed. The premium rose to common $34.32/mt April 1-12, the information additionally confirmed.
Supply: Platts
