Planned supplies have been cut to 310,000-320,000 mt since March -- from typical monthly volumes of 330,000 mt -- due to the ongoing refinery turnarounds, industry sources said.
Actual sales volume on the other hand, is expected at 340,000-350,000 mt in March due to strong demand.
Further out, demand in April is likely to remain at levels similar to March, trade sources said, with a trader saying "we have declined to offer spot fuel as we have to supply term customers."
As refiners will carry out turnarounds until mid-June, supply was expected to remain low until the end of turnaround season.
Adding to this, there are heavier turnarounds planned for in 2013, compared with previous years, a trade source noted.
In Tokyo Bay, Kyokuto Petroleum Industries has shut its sole 175,000 b/d crude distillation unit at its refinery in Chiba, Tokyo Bay, over March 15-April 20. The refiner normally supplies around 25,000 mt/month of bunker fuel from Chiba but this has declined to 20,000 mt/month since March, trade sources said.
Idemitsu Kosan, which normally supplies about 70,000 mt/month of bunker fuel, has reduced its supply to 60,000 mt/month since March due to a turnaround at its 220,000 b/d Chiba refinery in Tokyo Bay over April-May, a company source said.
In West Japan, TonenGeneral has cut supply from its 156,000 b/d Sakai refinery ahead of a turnaround planned for over May 12-June 18, trade sources said.
JX Nippon Oil & Energy has shut the 95,200 b/d No. 2 CDU at its 205,200 b/d Mizushima-B plant on March 27 for maintenance that will last until June 8. The 110,000 b/d No. 3 CDU at the same plant will be shut for maintenance from late May to late July.
Despite the turnaround at Mizushima-B, JX plans to maintain its supply volume, but there should not be additional supply from the refiner, trade sources said.