Hong Kong, Shanghai bunker supply tightness set to ease as cargoes arrive

Supply tightness in Hong Kong's 180 CST grade bunker and Shanghai's 380 CST grade fuel markets is set to ease next week as cargoes start arriving in both ports, industry sources said Friday.

Loadings to both ports have been delayed in recent weeks by supply tightness in Singapore.

Hong Kong 180 CST supply tightened after largest supplier Sinopec Hong Kong suspended spot 180 CST grade bunker fuel sales early this week.

"Cargo will arrive around November 12," a company source said, adding it will be able to offer spot 180 CST grade bunker fuel from November 13 on a delivery basis.

In Shanghai, a major bunkering port in China, the two largest suppliers Chimbusco and Sinopec Zhoushan were facing supply tightness Friday as they waited for fresh cargoes to arrive.

Largest supplier Chimbusco can offer spot bunker fuel, but stocks are low, a company source said. "But our supply will improve soon," he said, adding a fresh cargo was expected in the next week.

Second-largest supplier Sinopec Zhoushan will see supply tightness in Shanghai until November 20, when its new cargo is due to arrive, a company source said.

High sulfur fuel oil supply has been tight in Singapore since October due to a fall in incoming arbitrage volumes, lower regional refinery runs and steady bunker fuel demand, market sources said.
Source: Platts