Asia Fuel Oil-India BPCL, HPCL offers 100KT Sept-Oct

SINGAPORE, Sep 13 (Reuters) Two Indian refiners have offered a total of 100,000 tonnes of September-October loading fuel oil via tenders as the market recovers from its worst-ever slump, traders said on Wednesday.

Bharat Petroleum Corp. Ltd. (BPCL) offered two prompt-loading parcels of 380-centistoke (cst) fuel oil, of 4.5-percent sulphur and 0.995 kg per cubic metre density, on a free-on-board (FOB) basis.

The first parcel, totalling 25,000 tonnes, is for Sept.

26-30 loading from Kochi while the second lot, totalling 45,000 tonnes, is for Sept. 23-27 lifting from Mumbai. The tender closes on Sept. 14 and will remain valid till a day later.

Hindustan Petroleum Corp. Ltd. (HPCL) has offered a 30,000-tonne parcel of 380-cst fuel oil, of 4.5 percent sulphur content and 0.998 kg per cubic metre density, for Oct. 23-25 loading from Vizag, FOB. The tender closes on Sept. 21 and will remain valid till a day later.

The offers follow a spate of cancellations of Indian tenders due to poor price bids in the midst of the market's worst-ever slump last month that saw crack spreads and cargo differentials plunged into all-time lows.

Five tenders were cancelled, including three from HPCL and one each from Indian Oil Corp. (IOC) and Kochi Refineries Ltd.

Subsequently, IOC sold a high-density 380-cst cargo at a deep discount of below s tonne to Singapore spot 180-cst quotes.

''They should get a better price this time, and maybe even successfully complete the tenders for a change, as the market is already improving,'' a Singapore-based Asian trader said.

Including the latest tenders, Indian refiners have sold or offered 315,000 tonnes for September, about four times the volume of September 2005, and 140,000 tonnes for October.

The benchmark Singapore market improved over the past week, after bottoming out last Monday.

Imports from the West are expected to dry up from October onwards, with about 800,000-1.1 million tonnes fixed, and another 2.7 million tonnes slated for this month.

The product's front-month September crack spread improved to minus .60 a barrel by midday on Wednesday, up from an all-time low of minus a week ago.

Differentials for the benchmark 180-cst grade closed at a discount of 9.50 a tonne on Tuesday, up from an all-time low of .13 a tonne two weeks ago.

REUTERS SBA KP1331