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Buenos Aires-Montevideo HSFO spread widest in four months: Platts data
The spread between high sulfur bunker fuel prices in Buenos Aires and the competing port of Montevideo, Uruguay, increased to its widest margin in over four months, according to Platts data.
IFO 380 CST Buenos Aires was assessed at a $145/mt discount to the same product in Montevideo due to abundant supplies and fierce supplier competition in the Argentinian port and contrasting supply tightness across the Rio de La Plata.
The spread is the widest since December 6, 2013, when it was assessed at $145.50/mt. So far in 2014, the spread has averaged $108/mt, Platts data show. Typically, the spread is around $60-100/mt, according to market sources.
On Tuesday, IFO 380 CST Buenos Aires was assessed at $593/mt delivered, down $3/mt from Monday, while Montevideo high sulfur bunker fuel was assessed $2/mt lower at $738/mt ex-wharf.
The spread began widening in late February after suppliers in Montevideo raised their offers above $700, citing tight supplies even though demand was weak and there were no production issues for Uruguayan refiner ANCAP.
Meanwhile, high sulfur bunker fuel prices have dropped in Buenos Aires in recent days as a result of strong supplier competition for business. This has come despite strong demand due to April marking the beginning of the harvest season and subsequent shipping activity increasing in May and June.
"It seems like there's a pretty good suppliers battle right now. It's like the Wild West," a trader said, adding that he received indications from suppliers as low as $570-580/mt delivered and as high as $595/mt delivered.
Source: Platts
IFO 380 CST Buenos Aires was assessed at a $145/mt discount to the same product in Montevideo due to abundant supplies and fierce supplier competition in the Argentinian port and contrasting supply tightness across the Rio de La Plata.
The spread is the widest since December 6, 2013, when it was assessed at $145.50/mt. So far in 2014, the spread has averaged $108/mt, Platts data show. Typically, the spread is around $60-100/mt, according to market sources.
On Tuesday, IFO 380 CST Buenos Aires was assessed at $593/mt delivered, down $3/mt from Monday, while Montevideo high sulfur bunker fuel was assessed $2/mt lower at $738/mt ex-wharf.
The spread began widening in late February after suppliers in Montevideo raised their offers above $700, citing tight supplies even though demand was weak and there were no production issues for Uruguayan refiner ANCAP.
Meanwhile, high sulfur bunker fuel prices have dropped in Buenos Aires in recent days as a result of strong supplier competition for business. This has come despite strong demand due to April marking the beginning of the harvest season and subsequent shipping activity increasing in May and June.
"It seems like there's a pretty good suppliers battle right now. It's like the Wild West," a trader said, adding that he received indications from suppliers as low as $570-580/mt delivered and as high as $595/mt delivered.
Source: Platts
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