HPCL offers 30,000T early Nov

SINGAPORE, Oct 12 (Reuters) India's Hindustan Petroleum Corp. Ltd. (HPCL) has issued a tender offering 30,000 tonnes of early-November fuel oil, a week after selling another parcel at stable prices, traders said on Thursday.

The 380-centistoke (cst) cargo, of 0.998 kg per cubic metre density and 4.0 percent sulphur, is for Nov. 7-9 loading from its Vizag terminal, on a free-on-board (FOB) basis.

The tender closes on Oct. 16 and will remain valid till later on the same day.

The refiner last sold a similar cargo, for late-October loading from Mumbai, to Vitol at a discount of - a tonne to Singapore spot quotes, FOB, and withdrew a second parcel that had been slated for lifting on Nov. 1-10.

Traders expect the current tender to be concluded at similar levels, which is still below average discounts of - a tonne to spot quotes, despite a firming East Asian fuel oil market.

''The issue in the market now is density. The cargo is high density and there's ample volumes of such materials around, so I don't really see a lot of demand for it,'' a Singapore-based Western trader said.

Demand for low-density cargoes, of 0.97-0.98 kg per cu m., has risen with firming Chinese demand for October-arrival cracked parcels and the Vietnamese seeking 338,000 tonnes to fulfil fourth-quarter requirements.

Indian refiners have also stepped up fuel oil exports in the past month, since the market emerged from its worst-ever slump in September.

Four refiners have sold or offered more than 300,000 tonnes since. Mangalore Refinery&Petrochemicals Ltd. (MRPL) is the biggest exporter, having sold 80,000 tonnes for early-November loading and another outstanding tender for the same volume, loading in mid-November, expiring late Thursday.

REUTERS SRS KN1200