Hong Kong’s VLSFO at near parity level to Singapore this week

Most suppliers in Hong Kong have ample VLSFO supply for prompt deliveries, compared to Singapore, where supply has been erratic in recent weeks with longer lead times, sources say.

PHOTO: Container ships and working crane bridge with Hong Kong skyline in the background. Getty Images

Hong Kong's VLSFO price has swung from a $30/mt premium over Singapore’s VLSFO in early June and dropped momentarily to a discount of $4/mt yesterday, before flipping back to near parity levels now.

All grades remain in ample supply in Hong Kong, with recommended lead times of around seven days. Some suppliers can offer prompt VLSFO deliveries in the port.

Demand has been sluggish in Hong Kong lately. Suppliers are competing aggressively on offers, with some even lowering price offers as they work to clear some of their excess stocks, a source says.

Hong Kong’s VLSFO currently stands at near-parity levels with Zhoushan and at a premium of $15/mt over Shanghai.

On the other hand, lead times for VLSFO in Singapore have fluctuated lately, with most suppliers now indicating up to 13 days. However, some can accommodate stems within seven days. This reflects supply tightness compared to the previous week, when traders suggested lead times ranging between 2-11 days.

HSFO supply in the port remains limited, with recommended lead times of 7-10 days. For LSMGO, lead times vary between 2-8 days.

By Nithin Chandran and Tuhin Roy

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