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Taiwan ports see 15% increase in marine fuel volumes in August on demand diversion: sources

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Taiwan ports see 15% increase in marine fuel volumes in August on demand diversion: sources

27th August 2020 06:26 GMT

Demand for marine fuels at Taiwanese ports was estimated to have surged about 15% this month as ships divert away from neighboring ports, refinery sources said Aug. 26.

"We have seen an increase in a number of bunker-only call ships that don't typically come to Taiwan," said a source with state-owned CPC Corp., which has a 90% share of Taiwan's bunker market.

Market sources attributed the increase to Hong Kong imposing a mandatory 14-day quarantine rule on all cargo ships in late July, which prompted shipowners to divert bunker-only calls to neighboring ports.

Furthermore, a tightness in barges at China's developing bunkering port of Zhoushan, which pushed back loading dates, led ships that needed to meet spot requirements look elsewhere.

Meanwhile, South Korea has faced a shortage in marine fuel supply this month as refiners cut volumes.

Bunker fuel demand has seen a slight recovery this month after bottoming out May-June, market sources said.

"We were able to meet the rise in demand with our inventories, and had asked our refineries to increase production at the start of August," a source added.

CPC's posted prices for the key 0.5%S marine fuel grade averaged $373.25/mt to date in August, rising from an average of $362.05/mt in July.