HPCL offers 25,000-30,000T Dec loading high-sulphur fuel

By Staff
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Google Oneindia News

SINGAPORE, Nov 30 (Reuters) Hindustan Petroleum Corp. Ltd. (HPCL) has issued a tender offering 25,000-30,000 tonnes of December-loading high-sulphur fuel oil, amid lower Indian export volumes for next month, industry sources said on Thursday.

The 380-centistoke (cst) cargo, of maximum 4 percent sulphur and 0.998 density, is for Dec. 19-21 loading from its Vizag terminal, on a free-on-board (FOB) basis.

The tender closes on Dec. 3 and will remain valid till a day later.

Indian export volumes for December via tenders, including the current issue, stand at 160,000 tonnes, down 55 percent from November and well below the monthly average of 263,000 tonnes.

''There's no reason for the Indian refiners to be selling less as domestic demand is quite balanced and there's no maintenance of any significance going on. The only possibility is that they are selling in the spot market instead of issuing tenders,'' a Singapore-based Asian trader said.

Low prices are another reason, the trader said, as the market remains weak with poor demand from both China, Asia's largest buyer, and the marine fuels market in the face of heavy Western inflows next month.

HPCL last sold a similar cargo, for November loading, at a discount of - a tonne to Singapore spot quotes, below typical deal levels at discounts of - but above levels when the market was in the throes of its worst-ever slump two to three months ago.

Traders expect the parcel to be done at lower prices due to a more bearish December outlook.

Total Indian volumes for the year, including the current offer, are at 3.16 million tonnes, well above last year's 1.83 million tonnes.

REUTERS CS DS1445

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