Gothenburg LSFO falls to parity with Hamburg on oversupply, competition
Time：2014-09-15
Browse：128
The last time, 380 CST LSFO Gothenburg spread over Hamburg was lower on March 7 at minus $2/mt, Platts data shows.
Falling LSFO premiums in the port of Gothenburg were attributed to greater availability of material from local refineries and a rising number of bunker suppliers, traders said.
“Scandinavian refineries are keen to sell off product…we could see better prices and availability for LSFO bunker spec,” the source added.
At the same time, prices were depressed by greater competition between local participants in the Scandinavian region. “Competition dictates the prices,” another source said.
While the LSFO spread between the two ports was steadily dwindling, Hamburg LSFO bunker prices on an outright basis hit a 42-month low Thursday, assessed at $570.50/mt. The last time it was lower was on February 11, 2011, at $562/mt, Platts data shows.
According to German traders, there was an abundance of LSFO availability on a spot basis as refineries were still producing steady volumes. Prompt implied demand was steady, sources said. In the port of Gothenburg, LSFO bunker prices were at $570.50/mt Thursday, sinking to a record low since the Platts began assessing the Gothenburg LSFO bunker market on October 4, 2011, Platts data show.