Marine fuel sales in Singapore, the world's top bunker port, for May fell 4.6 percent to 2.50 million tonnes versus April levels, as high prices dampened demand, government data showed on Wednesday.
The volume was up a marginal 0.5 percent from year-ago levels, the preliminary estimates showed, but above last year's monthly average of 2.36 million tonnes. "Spot demand had been quite bad last month and I am actually surprised that we hit 2.5 million tonnes at all," a Singapore-based supplier said. "Most of the volumes probably came from term deals, which account for quite a substantial portion of the market."
The lower volumes were mainly due to higher outright prices in Singapore last month and falling rates in rival bunker port Fujairah, which lured away demand. The world's second-largest marine fuel port in the United Arab Emirates had recovered from severe supply shortages that had dogged it since second-half February.
Differentials between bunker prices and cargo values in Singapore were in discount all of May, hovering between parity and minus $4.90 a tonne due to poor demand, down from premiums of $3-$5 in April.
May average prices for the bunkers grade 380-centistoke (cst) were at $336.70 a tonne, a slight 38.8 cents lower than April's 11-month highs. In line with the high total volumes for May, sales of the 380-cst grade fell 8.6 percent on month and 4.3 percent on-year.
However, sales of the lower-grade and cheaper 500-cst jumped 53.9 percent on-year to an all-time high of 339,400 tonnes, as more new vessels - with more efficient engines capable of burning cheaper, high-viscosity grades - enter the market.
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