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Japan 380 CST bunker fuel premiums to MOPS weaken in May on low demand
Japan 380 CST bunker premiums to the Mean of Platts Singapore 380 CST high sulfur fuel oil assessments have weakened in May due to weak demand, bunker fuel traders in the country said Tuesday.
The Japan 380 CST bunker fuel price was assessed at $643.50/mt Monday at 0930 GMT, a premium of $44.95/mt to Mean of Platts Singapore 380 CST high sulfur fuel oil assessments, Platts data showed.
The premium had declined for five trading days in a row after peaking at $49.37/mt on May 9, according to Platts data.
Japanese bunker traders Tuesday said 380 CST grade bunker fuel was traded at around $635/mt late Monday for delivery to Tokyo Bay and west Japan.
Sluggish demand is the main reason for weak prices, they said. Supply is steady from April, when 330,000-340,000 mt of bunker fuel was estimated to have been sold, traders said.
"Demand in May is weaker than in April," said a bunker trader in Tokyo.
"There seems to be several factors for weak demand in Japan -- vessel schedules, high prices, the Golden Week Holiday, etc.," said another trader.
The main vessels taking bunker fuel at Japanese ports are bulk carriers that move between Japan and Australia, which typically load bunker fuel in Japan after each round trip that takes more than a month, traders said.
"Demand in April was strong, so we might be seeing the reaction in May," said one bunker fuel trader.
On the other hand, demand was also shifting to other countries due to high prices, traders said.
"There are few inquiries," said one bunker trader in Tokyo.
"We cannot get orders if the vessel goes to South Korea or China after Japan," the trader added. South Korea's 380 CST bunker price was $31/mt lower than Japan's Monday, while Shanghai's 380 CST bunker price was $21/mt lower, Platts data showed.
Trade activity across all sectors in Japan also slowed during the Golden Week holiday in the first week of May.
One trader said Japan's bunker fuel sales were likely to be around 300,000 mt in May.
Source: Platts
The Japan 380 CST bunker fuel price was assessed at $643.50/mt Monday at 0930 GMT, a premium of $44.95/mt to Mean of Platts Singapore 380 CST high sulfur fuel oil assessments, Platts data showed.
The premium had declined for five trading days in a row after peaking at $49.37/mt on May 9, according to Platts data.
Japanese bunker traders Tuesday said 380 CST grade bunker fuel was traded at around $635/mt late Monday for delivery to Tokyo Bay and west Japan.
Sluggish demand is the main reason for weak prices, they said. Supply is steady from April, when 330,000-340,000 mt of bunker fuel was estimated to have been sold, traders said.
"Demand in May is weaker than in April," said a bunker trader in Tokyo.
"There seems to be several factors for weak demand in Japan -- vessel schedules, high prices, the Golden Week Holiday, etc.," said another trader.
The main vessels taking bunker fuel at Japanese ports are bulk carriers that move between Japan and Australia, which typically load bunker fuel in Japan after each round trip that takes more than a month, traders said.
"Demand in April was strong, so we might be seeing the reaction in May," said one bunker fuel trader.
On the other hand, demand was also shifting to other countries due to high prices, traders said.
"There are few inquiries," said one bunker trader in Tokyo.
"We cannot get orders if the vessel goes to South Korea or China after Japan," the trader added. South Korea's 380 CST bunker price was $31/mt lower than Japan's Monday, while Shanghai's 380 CST bunker price was $21/mt lower, Platts data showed.
Trade activity across all sectors in Japan also slowed during the Golden Week holiday in the first week of May.
One trader said Japan's bunker fuel sales were likely to be around 300,000 mt in May.
Source: Platts
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