In International Shipping News 15/06/2020
Initial signs of recovery seen in the Asian marine fuel market have faded amid ample supply and slow demand with the contango structure weakening from three-month highs reached June 5, market sources said June 12.
Market structure for the benchmark Singapore Marine Fuel 0.5%S swaps had inched up from a one-month low of minus $9.80/mt on May 29 to be assessed at minus $4.75/mt on June 5 — a three-month high, S&P Global Platts data showed.
But at the end of the Platts Market on Close process on June 12, the contango deepened to minus $6.75/mt, reflecting slowing demand recovery.
“Right now, demand is flattish to slightly weaker compared to that at the end of May. Spot [bunker] sales have been reasonably steady, but the amount being sold on term this month has declined quite a bit for our company,” a Singapore-based bunker supplier said.
Negotiations for the term supply of Singapore ex-wharf Marine Fuel 0.5%S bunker fuel for July were largely inconclusive, as the market was still awaiting cues on near-term price direction amid a wide bid-offer spread.
A lack of incremental demand also weighed on the spot Singapore-delivered Marine Fuel 0.5%S bunker market. The differential between Singapore gasoil 10 ppm cargo and Singapore-delivered Marine Fuel 0.5%S bunker, which had touched a six-month high of $34.87/mt on June 9, has since narrowed to $32.78/mt June 12, Platts data showed.
A fair share of IMO-compliant marine fuel in Asia is bought and sold basis Singapore 10 ppm gasoil assessment
