Bearish across commodities, Singapore ex-wharf loses traction, China Construction Bank to continue support to shipping industry

Singapore Summary:

  • 180FO Bal Oct traded 645.00 (-11.45)
  • 180FO Nov traded 643.50 (-11.15)
  • 180FO Bal Oct/Nov traded +1.75
  • Visco: Bal Oct traded 11.75
  • 380FO Bal Oct value 634.00 (-10.55)
  • GO Bal Oct value 125.90 (-1.30)

 

Markets trended lower with the Singapore bunker ex-wharf market falling to $642/mt offers October 4. This was much lower than the offers heard October 3 which was hovering around $653/mt. Traders that BunkerBridge talked with Oct 4 reported that bunker consumption has been muted. The fuel oil contract also showed weakness with contracts declining across the grades.

Balance of the month October 180 cst futures was traded at $645/mt Oct 4, which is $11.45/mt lower day on day. November contract for the same grade was traded $11.15/mt lower from Oct 3 to $643.50/mt Oct 4. Sluggish fundamentals still ruled the fuel oil market. Upstream, Brent crude futures also closed softer with the bearish factors outweighing the bullish forces.

TradeWinds News reported October 3 that the China Construction Bank has promised to support the shipping industry despite sluggish markets. The company representative was quoted as saying that it will continue to provide credit to the industry, emphasizing that the market is cyclical and that the increasing port volume figures provide a good indicator of growth.