India, Sri Lanka see weak bunker fuel demand in November

Bunker markets in Mumbai saw a fall in demand for bunker fuels due to the inconsistency in availability of supplies at the port, while despite plentiful supplies, traders across Sri Lanka said the drop in the number of ship calls reduced the total bunker demand at the port, India Shipping News reported, citing Platts data.

Ports across the East Coast of India reported a stable demand for high-sulfur fuel oil (HSFO) and very low-sulfur fuel oil (VLSFO), supported by strong product availability from domestic refineries, trade and market sources said. In a positive market development, the Port of Paradip resumed VLSFO supplies after a prolonged period as the underlying issues have been resolved by the refinery, trade and market sources said.

At the ports of Visakhapatnam and Kakinada, markets improved compared to previous months, with no product scarcity in November. IOCL has been maintaining good stock levels, and both HPCL and IOCL are supplying HSFO, while VLSFO is readily available from these refineries. The number of scrubber-fitted vessels calling at these ports has risen, leading to higher HSFO consumption. Additionally, cargo vessels are actively calling at these ports, further boosting demand.

Market participants said bunker demand at Chennai and Tuticorin remained stable, whereas the Port of Haldia witnessed a significant uptick in demand, supported by an increased availability of supplies and rising inquiries. Despite an oversupplied market throughout November, bunker demand fell across Sri Lankan ports of Colombo and Hambantota due to reduced ship calls and competitive pricing at nearby ports.

In August, the number of ship-to-ship and bunkering operations at Sri Lanka decreased 16% month on month to 181, CAS data showed.