World News
20% Rise in Singapore Low-Sulfur Demand Predicted
Demand for low-sulfur fuel in Singapore will rise 20 percent or more this year thanks to demand created by the North American emissions control area (ECA), Reuters reports based on a survey of six bunker players.
The total demand for the low-sulfur fuel could reach 60,000 metric tonnes (mt) per month this year, compared with 45,000 to 50,000 mt per month last year.
Official data published by Maritime and Port Authority of Singapore (MPA) shows that so far in 2013, the average monthly sales volume of low sulfur 380 cSt (LS380) and low sulfur MGO (LSMGO) is 41,100 mt and 11,700 mt respectively.
The demand did not rise right away after the ECA went into effect in August because new suppliers did not enter the market right away, one trader said.
Since August, firms including BP, Shell and Total have begun offering low-sulfur bunkers in Singapore, joining Petrobras, which began selling it earlier.
By October, the premium for low-sulfur bunkers had fallen due to more competition for the product.
Some bunker players said they can't predict where the demand for low-sulfur fuel will head in coming years, with one respondent saying it depended on how many vessels opted for distillates, or take up liquefied natural gas (LNG), when stricter sulfur limits come into force in 2015.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 504.50 | 2.50 | 620.00 | 3.00 |
| Rotterdam | 456.00 | 1.50 | 621.50 | 2.00 |
| Houston | 476.00 | 7.00 | 624.00 | 1.00 |
| Fujairah | 496.50 | 2.00 | 713.00 | 2.50 |
| Global 20 Ports Average | 526.50 | 0.50 | 712.00 | 0.50 |
| Global 4 Ports Average | 483.00 | 2.00 | 644.50 | 0.50 |
| Global Average Bunker Price | 570.50 | 1.50 | 751.00 | 1.00 |
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