Experts forecast bunker market in Russia’s Far East ports to reduce by a half this month
The market reshapes in favor of small and mid-size players
Bunker market players and experts interviewed by IAA PortNews mark the reduction of bunker sales in Russia’s Far East ports by over a half. In view of considerable decrease of ship calls and hard to forecast maritime logistics as a whole, bunker sales in Russian ports of the Far East are expected to make 30,000 – 45,000 tonnes in March 2022.
Notably, the Analytical Department of IAA PortNews used to mark the general downward trend of Russia’s Far East bunker market throughout the entire year of 2021. In the beginning of 2021, the total market in the Far East Basin was estimated at 150,000 -170,000 tonns per month and it decreased to 105,000 – 110,000 tonnes per month by autumn 2021.
According to earlier reports of IAA PortNews, the global bunker market saw a considerable growth of prices between February 17 and March 14, 2022. At the Far East ports, VLSFO (sulphur content of 0.5%) increased by 34% from mid-February 2022 to 820 USD/MT. At the Far East ports of Russia, its price is 210 USD/MT less than in Singapore.
The Far East bunker market players says that the plummeting bunker market has forced major player out. The majority of bunkering operations are currently conducted by small and mid-size companies. “The market is getting not interesting to large oil companies and we are returning to the situation typical before 2006 when bunkering was the segment of small players,” said one of those interviewed by IAA PortNews.
Read more about today’s downward trend of bunker prices in IAA PortNews’ Bunker Market Digest which offers detailed bunker indications at major ports of Russia.
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