Key facts
- Marine gasoil (MGO) prices in Europe are rising faster than fuel oil.
- Rotterdam MGO sales in Q2 surpassed Singapore for the first time since EU anti-dumping duties on Chinese biodiesel.
- India has suspended sulphur exports.
- Market participants expect Indian refiners to halt sulphur shipments until further notice.
- Reliance Industries is primarily affected by India's sulphur export halt.
- Tupras awarded its August domestic sulphur e-tender.
- Awarded prices for Tupras's August tender ranged from $849-912/t FCA.
- The average increase for Tupras's awarded prices was $153.50/t from its previous tender.
- Prices in Tupras's June tender ranged from $650-804/t FCA.
Marine gasoil (MGO) prices in Europe are experiencing a sharp increase, surpassing fuel oil prices due to a significant supply squeeze. Rotterdam sales of MGO in the second quarter have exceeded those in Singapore for the first time since the imposition of EU anti-dumping duties on Chinese biodiesel. This tightening of supply is exacerbated by India's decision to suspend its sulphur exports. Although official documentation is still pending, market participants anticipate that Indian refiners, including Reliance Industries, will halt shipments indefinitely. This move further constricts global availability of sulphur. In line with these market pressures, Turkish refiner Tupras has awarded its August domestic sulphur e-tender at considerably higher prices. The awarded prices ranged from $849 to $912 per tonne FCA, representing an average increase of $153.50 per tonne compared to its previous tender. These new prices are a substantial rise from the $650 to $804 per tonne FCA recorded in the June tender.