St. Petersburg market undercutting competitors
Some reported offers have been undercutting the Rotterdam bunker hub by more the $130 per metric tonne (pmt).
Bunkerworld price data on Tuesday showed a wide price spread for high sulphur 380 centistoke (cst) material in the Russian port, with lows of $240 pmt and highs of $284.
The Bunkerworld average for St. Petersburg was $262 pmt, over $110 below Rotterdam's price of $372.50 pmt on the same day.
A source close to the market doubted that the lower offers were realistic, but nevertheless said bunkers were being sold at over $90 pmt below Rotterdam. “St. Petersburg is a very competitive market,” said the source.
But players also pointed out that St. Petersburg suppliers were selling product from Russian refineries and therefore were exempt from paying Russian export duties.
Fuel oil arriving in the Antwerp-Rotterdam-Amsterdam (ARA) bunker market from Russia, on the other hand, is subject to an export tax that currently stands at over $79 per mt.
The latest announcement from the Russian authorities is that export duties on fuel oil will rise to almost $88 pmt in August, a move likely to widen the differential between St. Petersburg and the ARA still further.
Players said demand in St. Petersburg meanwhile was good, with no shortage of supplies.
Bunkerworld price data on Tuesday showed a wide price spread for high sulphur 380 centistoke (cst) material in the Russian port, with lows of $240 pmt and highs of $284.
The Bunkerworld average for St. Petersburg was $262 pmt, over $110 below Rotterdam's price of $372.50 pmt on the same day.
A source close to the market doubted that the lower offers were realistic, but nevertheless said bunkers were being sold at over $90 pmt below Rotterdam. “St. Petersburg is a very competitive market,” said the source.
But players also pointed out that St. Petersburg suppliers were selling product from Russian refineries and therefore were exempt from paying Russian export duties.
Fuel oil arriving in the Antwerp-Rotterdam-Amsterdam (ARA) bunker market from Russia, on the other hand, is subject to an export tax that currently stands at over $79 per mt.
The latest announcement from the Russian authorities is that export duties on fuel oil will rise to almost $88 pmt in August, a move likely to widen the differential between St. Petersburg and the ARA still further.
Players said demand in St. Petersburg meanwhile was good, with no shortage of supplies.