Asia/Pacific News
Asian Bunker Volumes Remain Steady, Despite Earlier Reports of Demand Spikes Away from Singapore
Asian bunker markets have remained largely steady after initial indications that events in Singapore were driving up demand in other Asian ports, Platts reports.
Following the collapse of OW Bunker this month and allegations of fraud at its Singapore-based subsidiary Dynamic Oil Trading, there were reports that some sales volumes could shift away from the world's biggest bunker market.
Despite a report of an initial surge in enquiries at Hong Kong around November 13 and 14, players now say the actual sales volumes there have remained steady.
And while there has been a price differential between the ports, shippers are not expected to alter plans purely for bunkering purposes at this stage.
"Hong Kong cannot compete with Singapore, so the vessels taking bunker fuel in Hong Kong are the ones that won't call at Singapore," said one trader.
In addition, credit terms have also tightened in the Hong Kong market, as has been reported of Singapore, according to one supplier, with traders saying that many buyers are demanding cash for transactions.
In India, a number of media outlets including the country's Economic Times reported a demand spike of up to 25 percent, but again, any increase in enquiries that has happened does not appear to have translated into a significant increase in sales volume.
According to the report, South Korean trading houses are meeting the supply gap in North Asia caused by OW Bunker's exit.
But one South Korean refiner said sales volumes were steady as other buyers were only taking on what OW Bunker would have.
Last week the Maritime and Port Authority of Singapore (MPA) and the Singapore Shipping Association said there would be minimal disruption to supply in Singapore.
