ANALYSIS: Singapore HSFO Demand Climbed to Pre-IMO 2020 Level in September

Singapore's conventional and biofuel blend sales saw a small gain from August's level last month. Image Credit: Ship & Bunker / Data Credit: MPA

Conventional bunker and biofuel blend sales volumes in Singapore, the world's largest marine fuels hub, saw a strong gain on the year in September while rising marginally from August 's level, as HSFO demand hit the highest level since before the 0.50% sulfur cap came into force in 2020.

The city-state's total conventional and biofuel demand reached 4.26 million mt in September, according to preliminary data from the Maritime and Port Authority. The total was up by 7.5% from the same month a year earlier and by 0.4% from August's level.

This year's high so far was the 4.52 million mt seen in May, which had been the highest monthly figure since January 2018.

January 2018's total of 4.61 million mt was the highest on record for Singapore.

Product Breakdown

VLSFO sales slipped by 2.2% on the month to 2.45 million mt in September, HSFO advanced by 5.7% to 1.47 million mt, distillates rose by 1% to 285,400 mt and biofuel blends dropped by 18.3% to 43,000 mt.

The HSFO total was the highest since November 2019, before the 0.50% sulfur cap came into force in January 2020. The price spread between VLSFO and HSFO narrowed significantly worldwide last month, while remaining relatively wide in Singapore.

HSFO's share of the total was 34.6%, up from 29.3% the same month a year earlier.

Separately, LNG bunker sales fell by 50.6% on the month to 7,700 mt, while no methanol sales were recorded.

Singapore has been including columns for biofuel blends, LNG and methanol sales since June.

Bunker Calls Advance

The number of vessels calling at Singapore to bunker advanced on a yearly basis in September but slipped from August's level.

A total of 3,478 vessels came to Singapore's waters to bunker in September. The total was up by 10.2% on the year and down by 0.1% from August's level.

That left the average conventional and biofuel bunker stem size last month at about 1,223 mt, compared with an average over the previous 12 months of 1,241 mt.

Prices

Singapore's average VLSFO price in September was $663/mt, up by 3.6% from August's level but down by 4.2% from the level seen a year earlier.

Ship & Bunker's G20-VLSFO Index of average prices across 20 leading bunkering ports gained 3.2% on the month and lost 9.2% on the year to $674.50/mt in September.

Bulker Visits Jump

Bulkers saw the most growth in gross tonnage visiting Singapore last month. Image Credit: Ship & Bunker / Data Credit: MPA

The total gross tonnage visiting Singapore jumped by 12.6% on the year to 260.7 million mt in September. This advance was led by the dry bulk segment, where calls by gross tonnage gained 17.3 million mt. Container tonnage calls rose by 16.9 million mt, while tankers declined by 3.7 million mt.

The mandatory mass flow meter systems used to measure all bunker deliveries in Singapore come with a +/-0.5% margin of error, a level considered more accurate than traditional measurement systems used at most other ports with the added benefit of all but eliminated volumetric malpractice.

Only licensed companies can supply bunkers in Singapore, and the MPA calculates sales based on the bunker delivery notes of those companies.