Asia-Pacific prices became softer because demand stayed low and many buyers had already bought what they needed for December. At the start of the week, Singapore sea prices fell. Later, prices stayed stable because some sellers did not accept cheaper prices and stock levels went down. Southeast Asia still had many weather issues, which limited short-term use. In the Middle East Gulf, there was less quick supply and loading delays, which caused higher offers for nearby cargoes. This kept the price difference between regions important.
Singapore: Early-week weakness, then stable prices
Singapore sea prices fell early in the week because of low demand and weaker buying interest. Later, prices became stable as some sellers refused lower offers and pressure from stocks reduced.
Offers for January loading were mostly around $360–365/t FOB Singapore, and some sellers who did not sell were thinking about lower prices.
PetroChina offered $357–358/t FOB for a 3,000-ton cargo loading 9–13 January. Refineries did not reduce output because profits compared to HSFO stayed good.
A 5,000-ton early January cargo was sold near $360/t FOB and shipped to Indonesia.
Malaysia: Floods keep demand low
Demand stayed weak because of heavy rain and sudden floods, which stopped construction work in many areas, including Kuala Lumpur.
Market players expect repair work, but timing is unclear because wet weather continues.
Supply stayed enough because of stable local production and supply from Singapore. The market stayed well supplied even though some projects were delayed.
Indonesia: Year-end deadlines support Java; imports mostly done
Rain delayed road work in parts of Indonesia, but contractors restarted work quickly after rain to meet year-end plans. The strongest demand was in Java.
Most importers had already bought December and January cargoes and were not looking for more. A 5,000-ton January cargo from Singapore was bought near $360/t FOB. At least 7,000 tons were also bought for January–February.
Market players expect imports to increase after Q2, following the Eid al-Fitr holiday.
Thailand: Strong local demand; limited exports
Local demand stayed strong in northern Thailand, where floods had less effect. Export supply stayed limited because plants were running at lower rates.
Import prices from Singapore were discussed near $400/t CFR for January.
Thai export prices were discussed around $350–365/t FOB Thailand, but talks were limited because buyers were not very active.
Vietnam: Heavy rain and high stocks
Demand stayed low because long-lasting monsoon rain, storms, and floods delayed projects.
Importers had little space and high stocks from earlier months. This reduced the need to buy. Singapore offers were seen as too expensive at $400–420/t CFR, while buyers wanted $390–400/t CFR or lower.
Some January talks happened near $400–405/t CFR, but deals moved slowly.
South Korea: Tender result pushes prices down
Export prices fell after a refinery sold January cargoes at $10–20/t below HSFO prices, equal to about $320–330/t FOB.
Only 6–7 cargoes were sold instead of more planned shipments.
Some cargoes were offered to China at $330–335/t FOB, but later buying interest fell to $320/t FOB after January needs were filled.
China: Winter slowdown and high stocks
Winter buying was expected to help demand, but demand stayed low in north and east China because of seasonal slowdown. Supply in south China stayed high.
Local prices in East China fell to Yn2,770–2,990/t, and prices in South China also dropped because stocks stayed high.
Import prices into East China were discussed around $355–370/t CFR, while buyers wanted $350–360/t CFR. In South China, most buyers had already bought for December and January.
Taiwan: Vietnam interest but slow progress
Buyers from Vietnam showed interest in January cargoes, but talks were slow. Bids were around $355/t FOB, while offers were $360/t FOB or higher.
One January cargo was agreed near $355–360/t FOB for delivery to Hanoi. Demand in other Southeast Asian markets stayed weak.
India: Strong demand, limited supply
Demand for bulk cargoes stayed strong, but activity was limited because there were few quick cargoes.
Some buyers paid extra money for quick loading. Prices were around $315–320/t FOB Middle East Gulf.
Local prices in west India stayed supported because imported supply was limited. Drum stocks stayed high, which limited new buying.
Outlook
Short-term demand in Southeast Asia is likely to stay low because of year-end timing, high stocks, and bad weather.
Singapore prices may stay in a narrow range. South Korea’s lower prices and China’s high stocks may limit buying. Vietnam may stay quiet until the weather improves. India should stay supported.
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