Singapore September 180cst fuel oil rose by more than Dubai crude. Supplies of the 380cst high-sulphur fuel oil (HSFO) grade from east China's Zhoushan headed to Singapore.
Trading firm Glencore sold two 20,000t (129,000 bl) cargoes of the 380cst HSFO grade for loading over 26-30 August on a fob straits basis. Thailand's PTTGC bought the 380cst HSFO cargo at $256/t and Glencore bought the second 380cst HSFO cargo at the same price as well. No trades were done for the 0.5pc marine fuel grade.
Taiwan's Formosa Petrochemical awarded a spot tender offering its second-August loading pyrolysis fuel oil (PFO) cargo. The refiner offered 10,000t of PFO for 24-26 August for loading from Mailiao on a fob basis. The tender was awarded at a discount of $60-70/t to Singapore 0.5pc marine fuel spot assessments. The refiner offered PFO with density level of 1.04 kg/l, viscosity of 35cst and sulphur content of 1,500ppm.
Formosa previously sold 10,000t of PFO through a tender for loading over 1-3 August from Mailiao on a fob basis. The tender was awarded at discount of $30-40/t to Singapore marine fuel spot assessments, traders said, although this could not be confirmed. Japanese refiner Idemitsu was the winner of this tender. It was erroneously reported in yesterday's report that this tender was awarded against Singapore 10ppm gasoil spot assessments. The cargo offered has the same guaranteed specifications as the current tender.
A fire hit Formosa's 540,000 b/d Mailiao refinery complex in mid-July, forcing it to shut one of its 180,000 b/d crude distillation units (CDUs). But it still has two 180,000 b/d CDUs running at about 80-90pc of capacity. Formosa also shut yesterday one of its gasoline-producing units, the 84,000 b/d residual fluid catalytic cracker (RFCC), but will ramp up its other 84,000 b/d RFCC to 90pc.
Trading firm Freepoint Commodities has chartered the Maersk Tacoma to load approximately 16,000t of HSFO from Zhoushan, China's main bunkering hub in the eastern province of Zhejiang, to head towards Singapore. The vessel was booked to load on 11 August. Freepoint previously booked the same vessel to send 380cst HSFO from South Korea towards Shanghai on 26 July. The steep discount between the Shanghai futures exchange's bonded 380cst fuel oil futures contract to Singapore 380cst HSFO paper values has created a viable arbitrage to send 380cst HSFO from Zhoushan to Singapore.
Source:Argus
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