- News
- Insights
- Bunkerworld .
- Asia's thirst for HSFO remains unquenched amid thrust for cleaner fuels
.
-
May 26
-
May 18
-
May 13
-
May 11
-
May 4
-
Apr 26
-
Apr 22
-
Apr 11
-
Apr 7
-
Apr 6
-
Mar 23
-
Mar 15
-
Mar 8
-
Feb 28
-
Feb 11
-
Feb 2
-
Feb 1
-
Jan 17
-
Dec 27
-
Dec 10
-
Dec 3
-
Nov 25
-
Nov 16
-
Oct 29
-
Oct 25
-
Oct 12
-
Oct 8
-
Oct 4
-
Sep 30
-
Sep 29
-
Sep 24
-
Sep 23
-
Sep 17
-
Sep 10
-
Sep 9
-
Sep 6
-
Sep 2
-
Aug 30
-
Aug 27
-
Aug 23
-
Aug 17
-
Aug 13
-
Aug 9
-
Aug 3
-
Jul 29
-
Jul 26
-
Jul 22
-
Jul 15
-
Jul 5
-
Jul 2
-
Jun 28
-
Jun 22
-
Jun 18
-
Jun 11
-
Jun 7
-
Jun 4
-
May 31
-
May 28
-
May 25
-
May 21
-
May 5
-
Apr 28
-
Apr 27
-
Apr 26
-
Apr 23
-
Apr 22
-
Apr 19
-
Apr 16
-
Apr 15
-
Apr 14
-
Apr 13
-
Apr 9
-
Apr 7
-
Apr 5
-
Mar 31
-
Mar 23
-
Mar 19
-
Mar 17
-
Mar 12
-
Mar 5
-
Mar 4
-
Mar 3
-
Mar 1
-
Feb 25
-
Feb 24
-
Feb 22
-
Feb 17
-
Feb 12
-
Feb 10
-
Feb 9
-
Feb 5
-
Feb 1
-
Jan 27
-
Jan 25
-
Jan 22
-
Jan 20
-
Jan 18
-
Jan 13
-
Jan 11
-
Jan 8
-
Jan 7
-
Jan 4
-
Dec 31
-
Dec 28
-
Dec 24
-
Dec 21
-
Dec 14
-
Dec 9
-
Dec 9
-
Dec 8
-
Dec 4
-
Dec 2
-
Dec 1
-
Nov 30
-
Nov 27
-
Nov 25
-
Nov 23
-
Nov 17
-
Nov 16
-
Nov 11
-
Nov 10
-
Nov 6
-
Nov 5
-
Nov 4
-
Nov 2
-
Oct 29
-
Oct 27
-
Oct 23
-
Oct 22
-
Oct 20
-
Oct 14
-
Oct 12
-
Oct 6
-
Oct 5
-
Sep 30
-
Sep 29
-
Sep 25
-
Sep 21
-
Sep 18
-
Sep 16
-
Sep 15
-
Sep 14
-
Sep 9
-
Sep 8
-
Sep 4
-
Sep 2
-
Aug 31
-
Aug 27
-
Aug 25
-
Aug 20
-
Aug 19
-
Aug 14
-
Aug 12
-
Aug 7
-
Aug 6
-
Aug 4
-
Jul 31
-
Jul 30
-
Jul 29
-
Jul 28
-
Jul 24
-
Jul 20
-
Jul 16
-
Jul 13
-
Jul 9
-
Jul 9
-
Jul 7
-
Jun 30
-
Jun 26
-
Jun 25
-
Jun 23
-
Jun 22
-
Jun 22
-
Jun 19
-
Jun 16
-
Jun 10
-
Jun 9
-
Jun 5
-
Jun 2
-
May 29
-
May 26
-
May 21
-
May 20
-
May 15
-
May 12
-
May 8
-
May 5
-
May 4
-
May 1
-
Apr 28
-
Apr 24
-
Apr 23
-
Apr 22
-
Apr 21
-
Apr 20
-
Apr 17
-
Apr 16
-
Apr 16
-
Apr 3
Contrary to initial expectations, Asia's high sulfur fuel oil market is witnessing a resurgence in demand for HSFO marine fuel as many smaller ports and bunker players start to offer this grade given, among other factors, a favorable Hi-5 spread, which has lured shipowners to install scrubbers.
This unquenching thirst for HSFO comes despite the big push for cleaner fuels following the International Maritime Organization's global sulfur mandate for marine fuels and its impending rules relating to decarbonization.
In Singapore, the world's largest bunkering port, HSFO bunker sales, which includes 180 CST, 380 CST and 500 CST bunker fuel grades, were mostly steady on the month in July, but rose almost 7% year on year to 1.06 million mt, contributing about 26% to total marine fuel sales, latest data from the Maritime and Port Authority of Singapore showed. Singapore's January-July HSFO sales had jumped 33.7% compared with the same period a year earlier.
“We are seeing a pick up in inquiries from shipowners for HSFO bunkering at Singapore as there is tight availability at Fujairah, coupled with competitive delivered HSFO pricing at Singapore," a Singapore-based trader said.
The discount for Singapore-delivered 380 CST HSFO to that of Fujairah widened from the July average of $6.82/mt, to average minus $15.83/mt over Aug. 1-19, Platts data showed.
Singapore's August HSFO bunker sales will likely be similar, or even slightly better, than July, a market source said.
Ports in nearby India and Sri Lanka have also seen a marked increase in inquiries, and are trying to emulate Singapore's HSFO success by ramping up offers as demand for the grade accelerates.
“HPCL is offering HSFO 380 CST at Mumbai, Kochi, Kandla and Vizag [Visakhapatnam] with fine avails," a company source told Platts.
"Compared with last year, we are experiencing almost double the orders for HSFO, mainly from scrubber-fitted container vessels. There are three to four big inquiries," he added.
At Kochi, HSFO demand stands at around 2,000 mt/month, a Mumbai-based bunker trader said. This is after a long hiatus as there were no HSFO availabilities in the last four to five months, he added.
In Sri Lanka, Advantis Bunkering became the first supplier of delivered HSFO at Colombo port, banking on a long-term increase in port calls by scrubber-fitted vessels, a company source said recently. Advantis had received "multiple inquiries" from major shipping companies since launching delivered HSFO sales, he said.
Advantis has secured a sale for 1,200 mt to be delivered between Aug. 25 and Aug. 30, another company source said. "Demand is picking up given the firm inquiries that are coming in.”
Meanwhile, a physical bunker supplier with a substantial market share at the port of Colombo said that a plan to offer delivered HSFO is “currently in the works”.
Scrubbers’ uptick brightens HSFO outlook
The continued installation of exhaust gas cleaning systems, or scrubbers, is supporting HSFO demand, industry sources said.
Increasing familiarity of the technology and clarity of its benefits in tackling GHG emissions has diminished the initial skepticism shrouding its use.
According to the Clean Shipping Alliance, a recent study by CE Delft, a research and consultancy firm, found that the increase in CO2 footprint from the additional refining of marine gasoil to likely be in the range of 10%-15% and potentially as high as 25%. By contrast, the increased CO2 from EGCS is only in the 1%-1.5% range. Furthermore, the EGCS technology achieves much lower sulfur output than required by the IMO 2020 rule, it added.
While companies are eager to use low carbon fuels when they become available for sustainable shipping, scrubber technology remains a key component in meeting the 2030 milestone, S&P Global Platts Analytics said earlier this month.
The current scrubber fleet numbers about 4,500, but if clean alternative fuels do not achieve adequate penetration by 2030, this number could escalate to close to 7,000, Platts Analytics estimated.
Meanwhile, the price differential between HSFO and Marine Fuel 0.5% sulfur, also known as the Hi-5 spread, has also favored the use of this technology.
In Singapore, this spread averaged $298.90/mt in January 2020 as the market transitioned to the IMO 2020 mandate. It narrowed to average as low as $60.32/mt in September 2020, but recovered to average $103.33/mt in January 2021, according to Platts data. This year up until July, the spread has, on a monthly basis, averaged mostly over $100/mt, and $111.44/mt over Aug. 1-19.
Bunkerworld .,