Sales of high-sulphur fuel oil (HSFO) in Singapore topped 1mn t in October for the first time this year, up by 130,000t from September, according to Singapore's Maritime and Port Authority.
The port's total sales of marine fuels fell by 65,000t on the month to 4.15mn t in October but increased by 385,000t, or 10.2pc, from October 2019.
Consumption of HSFO, which is allowed under the International Maritime Organization's sulphur cap regulations only by vessels with scrubbers, averaged 771,000t over January-October.
"Demand for HSFO has picked up in recent months as more retrofitted ships are completed, especially dry bulk and tankers", said a Singapore-based trader.
The premium of gasoil bunkers over HSFO bunkers has also declined significantly, to an average of $65/t so far this month, according to Argus data.
"Singapore is clearly more price competitive than any of the surrounding ports so the increase in scrubber installations is now fully flowing through to demand", said a Singapore-based buyer. "Large container ships, very-large crude carriers/very-large gas carriers and Capesize vessels with scrubbers do not have many ports to choose from where HSFO can still be lifted, so their demand all funnels into Singapore."
"Zhoushan, Shanghai and Vladivostok are the main ports in Asia still offering HSFO, apart from Singapore, but it can also be obtained in Tokyo and some ports in India", the same buyer said.
HSFO bunker prices in Zhoushan, China's largest bunker port, were at an average of $7/t more than in Singapore in October, according to Argus data.
Singapore boasts a superior supply chain compared to other regional ports, and its reliability, timeliness and transparency has propelled it into the world's largest bunker port.
Sales of very-low sulphur fuel oil (VLSFO) fell to 2.7mn t in October from 2.9mn t in September. Demand for VLSFO with a maximum viscosity of 380cst was 2.23mn t, with demand for the 100cst grade at 462,000t.
Low-sulphur marine gasoil (LSMGO) sales volumes declined to 328,000t from 363,000t in September.
Argus reported an average of 14 bunker deals each day in October, split between eight for VLSFO, 3½ for LSMGO and 2½ for HSFO.
Singapore's delivered VLSFO, LSMGO and HSFO prices in October averaged $329/t, $336/t and $268/t, respectively, compared to $320/t, $337/t and $259/t in September.
An estimated 3,396 vessels called at Singapore to refuel in October, down from 3,455 vessels in September.
