An uptick in activity in the Platts European bunker Market on Close at the start of 2024 has resulted in the first trade in the assessment process in over a year Feb. 16.
Orim sold to Peninsula a delivered Rotterdam 500MT 0.5% sulphur marine fuel bunker clip during the Feb. 16 MOC for Feb. 17-Feb. 19 at $592/MT, marking the first 0.5% marine fuel bunker trade during the assessment process since November 2022. Previously, the last traded clip in the Europe bunker MOC was for 3.5% sulphur delivered in Rotterdam in January 2023, when Peninsula lifted an offer from Orim.
The bunker MOC has been largely quiet, seeing only sporadic bids and offers throughout 2023. However, in January 2024, activity surged, with United Bunkers consistently offering delivered Rotterdam 3.5% sulfur bunker clips across all assessment laycans at competitive prices, without being lifted. United Bunkers last offered at $450/MT, on Feb. 16, which remained live at the close.
Bunker prices for high sulfur fuel oil in Rotterdam have been assessed by Platts, part of S&P Global Commodity Insights, in a $36/MT range since the beginning of the year, rising around 2.3% from $440/MT Jan. 2 to $450/MT Feb. 16. Meanwhile, VLSFO prices have been assessed in a much wider range of $62/MT, rising 7% in the same period, from $553/MT Jan. 2 to $592/Mt by Feb. 16.
Bunker traders have been reporting sluggish demand for HSFO deliveries, while inquiries for VLSFO and marine gasoil have been relatively steady. As a result, the market for VLSFO was heard relatively balanced, while HSFO in Northwest Europe was reported to be quite heavy, which has been reflected in the soft paper market.
The balance-month to front-month spread for 3.5% FOB Rotterdam barges was assessed at an 11-month low of minus $4.75/MT on Feb. 15, where it stayed on Feb. 16, reflecting pressure on prompt prices. Meanwhile, the Med/North spread — the difference between 3.5% FOB Med cargoes and 3.5% FOB Rotterdam barges — also hit a recent low on Feb. 12 of minus $6/MT, demonstrating the pressure on the Northwest European market compared with the north.
The Platts MOC assessment process for bunkers reflects bids and offers for Rotterdam, Piraeus, Gibraltar and Algeciras. The most recent MOC trade in the Mediterranean was in March 2022, when Maersk hit Peninsula’s bid for Delivered Algeciras 0.5% clip.
Source: Hellenic Shipping News
