Bunker blending margins drop moderately on lower bunker fuel oil prices

Chemical News: Bunker blending margins drop moderately on lower bunker fuel oil prices

https://www.chemnet.com Jul 15,2011
The theoretical bunker blending margins declined moderately in both East China and South China this week, because of drops in bunker fuel oil prices, C1 found.

In East China, the blending margins were at Yuan 123/mt on Jul 14, down Yuan 35/mt from Jul 7, C1's assessment showed. The prices of 180CST bunker fuel oil edged down Yuan 35/mt to Yuan 5,030-5,160/mt in the past week, including delivery to ships, while blendstock costs were stable.

In South China, the margins fell from Yuan 83/mt to Yuan 30/mt in the period as the prices of bunker 180CST fuel oil slid Yuan 30/mt when blendstock costs rebounded slightly, the assessment indicated.

The blending margins may shrink further since bunker fuel oil prices are still under pressure to go down amid weakening shipping demand, according to some shipping sources.

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