Higher crude prices held back buying interest in China's bunker markets. Prices rose across the board but spot trade volumes fell.
Very low sulphur fuel oil (VLSFO) spot volumes in Zhoushan were at 2,800t, compared to more than 4,900t on Friday. The combination of higher crude prices and mixed sales strategies in Zhoushan caused the range between the highest and lowest spot trades to widen to $10/t from $8/t on Friday. Major suppliers tried to sell at a higher price but minor suppliers took the opportunity to grab some spot deals after being under pressure for a while.
Zhoushan VLSFO was assessed $10/t higher from Friday at $347.70/t on Monday. Shanghai spot deal volumes were at 1,750t for VLSFO, which was assessed $11.50/t higher at $352/t. Some bunker suppliers in Zhoushan are estimated to hold inventory at a cost of about $340/t. That is close to the average price of Zhoushan VLSFO for August, indicating bunker suppliers are breaking even.
Source:Argus
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