The Hi5 price gap in Zhoushan has reached its lowest level since last February. The price of HSFO (Heavy Sulfur Fuel Oil) at this center has increased to $863 per ton, while the price of VLSFO (Very Low Sulfur Fuel Oil) has decreased.
Price Details and Market Changes
The price gap between VLSFO and HSFO averaged $41 per ton on Tuesday, down from $217 per ton on September 2 and $226 per ton in early July. The price of HSFO has increased by $126 per ton since September 21. In contrast, the price of VLSFO has decreased by $16 per ton to $904 per ton. Meanwhile, the average price of HSFO this month has reached $865 per ton, the highest monthly average since November 2021.
Read more: Utilization of Unprecedented Tanker Rates Reached $1.4 Million Per Day
Decrease in Imports and Fuel Access Restrictions
HSFO imports to Zhoushan decreased to 63,000 barrels per day in September, down 40% from 105,000 barrels per day in August. The number of imported shipments also dropped from 15 shipments in August to 6 shipments in September. Additionally, import volumes from Russia have decreased to 23,000 barrels per day, and no shipments from Saudi Arabia have been recorded.
Despite low demand, fuel inventory in Zhoushan remains limited, and several suppliers have reported low inventory levels. The delivery time for HSFO has increased to about 15 days. In contrast, the delivery time for VLSFO has decreased to 12 days, while the delivery time for LSMGO (Low Sulfur Marine Gas Oil) has increased to 12 days.
Zhoushan port resumed loading activities completely on September 16 after a 22-day suspension due to adverse weather conditions caused by a storm. The Hi5 price gap at the beginning of the year was about $90 per ton and decreased to $36 per ton on February 3.
Recent developments are attributed to the Iran war and rising VLSFO prices compared to HSFO, which has disrupted flows from the Strait of Hormuz. This price gap increased to $161 per ton in the week ending March 15 and reached $221 per ton on March 20. With falling prices, the price gap decreased to $51 per ton on April 18 and rose again in May and June, reaching its highest level in 2026 on July 3.
Comparison with Other Markets
The price gap in Zhoushan has been lower than the price gap in Singapore for most of 2026. The price gap in Singapore was $72 per ton at the beginning of the year and reached $244 per ton in the week ending August 9. Currently, the price gap in Singapore is $106 per ton, which is $65 per ton higher than in Zhoushan. Meanwhile, the price gap in Fujairah has risen from $91 per ton at the beginning of the year to $270 per ton.
Vortexa data shows that HSFO accounts for 80% of Fujairah's fuel imports, and VLSFO shipments have entered for the first time since February. The higher Hi5 price gap reduces fuel costs for ships equipped with scrubbers that use HSFO instead of VLSFO.
Read more: Increase in Industrial Natural Gas Demand in the United States by 2027 · Increase in Natural Gas Prices Due to Early Cold and Pipeline Outages in Northeastern States of the United States
