India\u2019s bunker demand slows in April on tight credit, market uncertainty<\/p>\n
Bunker demand across India\u2019s west and east coasts slowed in April compared with March amid tight credit and ongoing market uncertainty due to the Middle East war, while supply was moderate throughout April, traders, suppliers, and other market participants told Platts, part of S&P Global Energy, on May 4.<\/p>\n
Traders and suppliers said elevated March prices quickly exhausted buyers\u2019 credit lines, limiting purchases to one or two stems and keeping many out of the market in April until limits reset. Weaker vessel activity about the Strait of Hormuz and idle ships further weighed on demand. The market remained volatile amid ceasefire developments, with buyers securing volumes during price rises but retreating as prices softened, expecting further declines.<\/p>\n
\u201cIn Mumbai, demand was moderate in April, with average volumes at around 4,000-5,000 metric tons for high sulfur fuel oil and about 20,000 mt for very low sulfur fuel oil,\u201d a source close to a major refinery told Platts.<\/p>\n
A Gujarat-based trader said, \u201cDemand in Kandla strengthened through April, supported by steady vessel activity at the port. However, barge availability was constrained despite ample refinery supply due to limited capacity, resulting in operational delays. All available barges were largely tied up, requiring bookings at least a week in advance, while a backlog of vessels awaiting bunker deliveries eliminated prompt supply options. Average stem sizes were reported in the range of 400-600 mt.\u201d<\/p>\n
\u201cThere have been no supply issues at the Hazira and Dahej ports, with strong demand observed at both locations. The average stem size is 500 mt, and there were no prompt deliveries in the region in April,\u201d the trader added.<\/p>\n
Subdued demand in Kochi<\/p>\n
\u201cWe observed strong demand for VLSFO in April, but product availability was a bit inconsistent in the month,\u201d a west coast-based supplier told Platts. \u201cConversely, the demand for HSFO has completely dropped, and we have not seen much demand. The average stem size for VLSFO in April was 400 mt, primarily driven by demand from bulk carrier vessels.\u201d<\/p>\n
A Delhi-based trader said, \u201cA lot of April requirements were pre-booked in March due to uncertainty around voyages. So, in April, it was mostly about lifting earlier deals rather than buying fresh. Looking ahead, traders expect demand to improve in May.\u201d<\/p>\n
A Dubai-based supplier for Kochi said, \u201cIn Kochi, demand remained subdued in April. Inquiries were very limited in April. May has started slowly as well, but we expect more interest to come through in the coming weeks.\u201d<\/p>\n
Demand falls at east coast ports<\/p>\n
Demand at India\u2019s east coast ports declined in April compared with March, with Haldia recording a decline in volumes. However, Chennai, New Mangalore, and Paradip saw lower volumes amid good product availability, traders, suppliers, and barge operators said.<\/p>\n
A Paradip-based supplier told Platts, \u201cWe have experienced good volumes after resolving the pipeline issue at the port. Overall, we supplied 6,000 mt at the port [in April].\u201d \u201cOverall, inquiries were somewhat slow; we did not encounter any significant issues in April. Additionally, we are expecting nearly 10,000 mt at the Paradip port in May.\u201d<\/p>\n
A Visakhapatnam-based supplier said, \u201cIn March, demand for VLSFO in Haldia has decreased, with a low number of inquiries observed.\u201d \u201c\u2026 [A major Indian] refinery supplied 7,500 mt in April, down from 13,000 mt in March; this decline was likely due to higher pricing for decreasing demand, despite favorable conditions such as good barge availability and ample product supply,\u201d the supplier added.<\/p>\n
A Visakhapatnam-based supplier said, \u201cAt Chennai, demand dropped in April compared to March, despite good availability of product in the region.\u201d \u201cVolumes were normal, around 7,000 mt only.\u201d<\/p>\n
\u201cIn New Mangalore port, we observed consistent demand, with a volume of 4,000 mt [in April], unchanged from the previous month. The supply and demand situation in Tuticorin remains stable; however, demand was limited due to current barge issues at the port, resulting in only a volume of 2,500 mt.\u201d<\/p>\n
hellenicshippingnews…<\/p>\n