Zhoushan HSFO tightens as imports drop and scrubber savings shrink

High-sulphur fuel oil has become the hard grade to buy in Zhoushan. Its price has climbed sharply since late September while VLSFO eased slightly. That has shrunk the gap between the two grades to its narrowest since February, according to Engine.

The squeeze comes from imports. Cargo tracker data from Vortexa, cited by Engine, shows HSFO arrivals into Zhoushan dropped 40% in September versus August, with six cargoes landing against 15 the month before. Russian volumes more than halved and no Saudi cargoes showed up. October has stayed thin so far, with only two Mexican cargoes discharged.

Several suppliers report low stock levels even though demand is muted. HSFO now needs about 15 days' notice, up from 14 a week ago. LSMGO has stretched to around 12 days from 10, while VLSFO has eased to roughly 12 days from 14. Work at the outer anchorages has been back to normal since 16 September, after typhoon weather halted it for 22 days.

For scrubber-fitted ships, a narrower spread means smaller savings from burning HSFO instead of VLSFO. Zhoushan's spread now sits well below Singapore's and far below Fujairah's, and Zhoushan HSFO is also priced above both of those hubs. Owners planning HSFO stems in China may want to compare lifting in Singapore or Fujairah if the route allows.