World News
Russian Low Prices Hurt Shenzhen Bunker Sales
Bunker sales in Shenzhen, China have fallen about 20 percent since the start of 2013 in the face of competition from the Russian Far East, Platts reports.
Maersk Line, Yang Ming, Hanjin Shipping, Hyundai Merchant Marine, and other major shipping companies have been buying fuel at the Russian ports, where prices are $100 to $150 lower per metric tonne (mt), a source from Shenzhen Brightoil told Platts.
"Our bunker fuel sales volume in Shenzhen has dropped significantly over the past seven months, as more and more shipping companies are preferring to buy from Russian Far Eastern ports, such as Vladivostok and Nakhodka," the source said.
The monthly sales volume at Shenzhen has dropped at least 30,000 mt on average, the source said.
The difference in price between the ports has led container vessels bound for the U.S. West Coast to shift their courses and slow steam for one or two days to reach Vostochny, Nakhodka, or Vladivostok.
Lower viscosity 180 cst bunker fuel is the main grade sold at the Russian ports, and, although it typically commands a premium over 380 cst fuel, the ports often sell it for $100 per mt less than Shenzhen 380 cst.
The price of 180 cst stood at $551 per mt at the Russian ports Wednesday, around $100 less than at other Asian ports, according to Ship & Bunker data.
Russia has been experiencing strong demand for fuel oil, both for bunkering and for exports.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Vostochny Port |
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| Vladivostok |
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| Nakhodka |
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| Singapore | 502.00 | 4.50 | 617.00 | 5.50 |
| Rotterdam | 457.50 | 2.50 | 623.50 | 6.50 |
| Houston | 469.00 | 3.50 | 623.00 | 2.00 |
| Fujairah | 494.50 | 6.50 | 715.50 | 5.50 |
| Global 20 Ports Average | 526.00 | 3.00 | 712.50 | 11.50 |
| Global 4 Ports Average | 481.00 | 4.00 | 645.00 | 4.50 |
| Global Average Bunker Price | 569.00 | 2.00 | 750.00 | 5.50 |
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