Zhoushan stocks dwindle as southern China ports run short of VLSFO

Bunker supply at Zhoushan stayed tight on 14 October. Several suppliers at the port said their inventories are shrinking, and the advised lead time for all three main grades - VLSFO, HSFO and LSMGO - is now about 11 days.

The squeeze is not limited to Zhoushan. Further south, VLSFO and LSMGO are also running short at Guangzhou, Xiamen, Fuzhou and Yangpu, according to suppliers there. Moving a stem to another Chinese port may not solve the problem.

Prices moved in different directions. Zhoushan VLSFO posted the biggest daily rise of the three main Asian hubs, while its HSFO price fell, so the gap between the two grades widened. A wider gap means scrubber-fitted ships save more by taking HSFO there, although Zhoushan HSFO is still priced above both Singapore and Fujairah.

For buyers, the practical points are simple:

• Send enquiries for Zhoushan and southern China at least 11 days before arrival.
• Check that the exact grade is in stock, not just that the port can usually provide it.
• Have a backup plan in case the stem cannot be confirmed in time.