India bunker demand stable in November, Sri Lanka volumes fall

India's west coast bunker fuel demand remained resilient in November as declining prices and improved domestic refinery supplies supported steady consumption at key ports including Mumbai, Kandla and Kochi, while east coast facilities struggled with limited uptake despite adequate product availability, market participants told Platts.

The sustained demand at west coast ports contrasts sharply with challenges facing regional competitor Sri Lanka, where cyclone-related disruptions cut November bunker volumes.

Steady demand at the Gulf of Kutch

Kandla experienced a steady demand month over month, with suppliers reporting inquiry volumes exceeding available supplies, driven by what market participants described as competitive pricing following the monsoon season.

A Kandla-based supplier reported handling 46,000 mt of very low sulfur fuel oil (VLSFO) volumes in November, including own-use ships.

"Just like last month, inquiry volumes were good," the supplier said. "After the monsoon, demand has really picked up, and especially over the last month, where inquiry volumes have exceeded supply volumes due to competitive prices."

Platts assessed marine fuel oil 0.5% delivered to Mumbai at $465/mt on Dec. 9, down $10/mt since the start of the week. In Singapore, Platts marine fuel 0.5% FOB cargoes rose $1.93/mt to close at $416.88/mt on Dec. 9. Marine fuel oil 0.5% delivered to Colombo was assessed at $495/mt, down $5/mt since the beginning of the week.

"November was very good for the ports in Gujarat. Indian Oil Corp. supplied nearly 42,000 mt of commercial volume across all Gujarat ports, executed by traders. We noticed prompt inquiries in the market; there were some concerns, such as barge delays due to a significant vessel lineup at the port, which affected the barges' ability to supply," a Gujarat-based trader added

Kochi Demand unchanged, bunkering starts at Vizhinjam

Kochi maintained stable demand levels month-over-month, with one supplier reporting approximately 11,500 mt of volumes despite occasional supply tightness when some suppliers lacked available product.

A notable development emerged with Adani Bunkering Pvt. Ltd. initiating trial bunkering services at Vizhinjam International Seaport in Thiruvananthapuram. The company completed one ship-to-ship transfer totaling 450 mt of VLSFO to container ships on Nov. 23, sourcing supplies from Kochi.

"This was on a test and trial basis; we're yet to start full-fledged bunkering services," a source close to the development said. "Gradually, we expect the pick-up in bunkering activity at the port to add to broader India bunker volumes."

Modest bunker demand at east coast ports

East coast ports, including Chennai, New Mangalore, and Tuticorin, experienced more subdued demand conditions, though Visakhapatnam showed a stronger appetite for high-sulfur fuel oil (HSFO).

"At the Port of Haldia, IOCL supplied 11,000 mt of VLSFO, maintaining good product availability throughout the month. In Tuticorin and Chennai, they supplied 4,500 mt and 6,000 mt, respectively," a Visakhapatnam-based trader said.

"In Visakhapatnam, demand for HSFO has increased, although there have been some availability issues," another East Coast India-based trader said. "Overall demand for both HSFO and VLSFO remains good. IOCL supplied nearly 18,000 mt at Visakhapatnam. However, despite a price drop in the region, we have not seen significant demand across the East Coast as a whole."

"Paradip experienced a good demand for bunker fuels in November. We supplied around 6,000 mt of volumes," said a Paradip-based supplier.

Sri Lanka bunker volumes down

Demand for bunker fuels at Colombo, Hambantota, and Trincomalee ports fell sharply in November due to operational disruptions from Cyclone Ditwah.

A Colombo-based supplier reported a 15%-20% month-over-month decline, primarily due to the cyclone.

A Bunkerworld survey showed demand at the three ports reached 65,000 mt in November, down 15,000 mt from the previous month.

"We achieved around 10,000 mt of volumes as our barge capacity was limited and our schedule was tight," said another Colombo-based trader.

December outlook

The regional bunker fuel market outlook for December appears positive, with Sri Lankan traders anticipating volume recovery as weather-related disruptions ease.

Market participants expect continued demand for HSFO to lift overall volumes.

"Much of our volumes from the last week of November were shifted to the first week of December. We expect the December volumes to be much better. Just in the first week this month, we have seen inquiry volumes of 7,000 mt for HSFO with fixtures of over 4,000 mt," a Sri Lanka-based trader told Platts.

"We're getting a lot of demand from bulkers besides MSC, Norden, with inquiry volumes of stem sizes ranging between 1,000-2,000 mt," the trader added.