Americas News
New York RMG Demand Weak as Shippers Turn to RMK
New York IFO380 prices Friday reached a low of almost 5 months at $306 per metric tonne (pmt), according to Ship & Bunker data, with demand for the 380 cSt RMG product said to be weak due to interest in higher viscosity RMK material.
"It seems to be all about RMK now. Those who have RMG are fighting over the few RMG inquiries left,” said a New York supplier.
"Newer ships can burn [RMK], it's cheaper ... less blending, that is the only reason.”
An increase in RMK’s popularity was reportedly predicted to correspond with the implementation of more stringent Emission Control Area (ECA) regulations, but the growing demand of the product is said to be solely attributed to economic factors.
”ECA has really no impact on it at all," one East Coast shipper said.
"A lot of the newer, bigger container vessels can all burn RMK, so they are taking more and more volume."
Last week, Ship & Bunker data showed that MGO prices in New York slid to a multi-year low of $534.50 pmt.
