Bunker demand in Indian, Sri Lankan ports mixed in June

Bunker demand for very low sulfur fuel oil at Indian ports remained mixed in June with the arrival of Southwest monsoon.

West-coast India, which makes up for most of the bunker demand in the country saw a good flow of inquiries throughout June supported by increased availability of product, traders said.

In June, the number of ship-to-ship and bunkering operations at Mumbai increased by 24% year on year to 445, data showed.

The port of Kochi, which is among the first regions in India to receive south-west monsoon rains saw a stable demand in June amid strong product flow and minimal weather-related disruptions.

According to CAS data, total Ship-to-Ship and bunkering operations at the port rose 10% month on month to 93 in June, up from 29 in June 2023.

Market demand across East-coast India was mixed due to supply related issues and unavailability of barges.

Monsoon related weather disruptions and consistent availability of product at competitive rates across Indian ports hit the June bunker sales volumes at Sri Lankan ports of Colombo and Hambantota.

The spread between Marine Fuel 0.5% Delivered Colombo and Marine Fuel 0.5% Delivered Kochi reached to its highest levels since January, peaking at $61/mt in June, S&P Global Commodity Insights data showed.

Total ship-to-ship and bunkering operations at Sri Lankan ports fell 26% month-on-month to 173 in June, almost 30% down from its peak in March.