Asia/Pacific News
Tight Bunker Supply in Japan Drives Business Elsewhere
Hong Kong and South Korea Tuesday were said to be seeing bunker supply enquiries rise as Japanese traders struggle to find bunkers to offer the spot market, Platts reports.
"We are not even sure we can cover term demand," said one trader.
Refineries in Japan are said to be getting ready for turnaround season which peaks in May.
"At the start of next month we can buy bunker cargoes from refiners, but refineries' stockpiling is behind schedule, thus they are not keen to sell in April and early May," said the trader.
Another Japanese trader said very few enquiries were coming in for heavy fuel oil grades, but there is unlikely to be supply to meet any demand.
"We can try [to offer] small quantities of 200-300 mt but beyond 1,000 mt, we cannot," said the trader.
Tight supply is pushing up prices in the Japanese market, which mainly serves ships plying Australia-Japan routes, with prices higher still in Australia.
"We are seeing more inquiries in South Korea and Hong Kong," said a Hong Kong-based supplier.
