Singapore LSFO suppliers up, premiums down
Premiums for LSFO in Singapore were down, but the number of suppliers offering the product went up, Seatrade Asia online reports.
The October premium for low sulfur bunkers in Singapore fell as a result of increased competition for the product, according to market sources quoted by Platts.
"With more suppliers, competition is getting tougher and tougher," a trade source was quoted as saying.
Ship & Bunker bunker price data showns that at the start of September in Singapore the premium was $116.00, when IFO380 was $679.00 per metric tonne (pmt) and 380 cSt product with a maximum sulfur content of 1 percent by weight (LS380) was $795.00 pmt.
At the end of last week that premium had dropped to $101.50, with IFO380 at $628.50 pmt and LS380 at $730.00 pmt.
Platts said premiums for low sulfur bunkers in the port fell to around $100 pmt over the Mean of Platts Singapore 380 CST high sulfur fuel oil assessments in October from $120 pmt in September.
Prior to the August 1, 2012 introduction of the North American Emissions Control Area (ECA), Petrobras was the sole major supplier of low sulfur bunker fuel in the Port, a trader said, but there are now a number of suppliers offering the ECA compliant product such as Total Marine Fuels who started supply in September.
The introduction of the ECA has caused a dramatic rise in demand for the product in North America where in August it was as much as 50 percent of the U.S. market.
Premiums then were around $125 pmt on the Atlantic and Gulf coasts and $280 on the West Cost, and the high level of variance remains with premiums Friday as low as $73 in Los Angeles and Long Beach, and as high as $276 in Vancouver.
