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SAICHILD FINANCIAL HOLDINGS LIMITED

EN590 Market Update

  • Writer: Richard Hwang
    Richard Hwang
  • Sep 9
  • 2 min read

Market Overview – Asia

This week, Asian commodity markets remained mixed as traders balanced softer demand signals from China with stronger refined product demand across Southeast Asia. Crude oil prices held within a narrow range, supported by supply cuts from OPEC+ but capped by global macroeconomic concerns. The shipping and freight market in Singapore and Malaysia showed stable flows, though higher insurance and logistics costs remain a challenge for importers.


EN590 (Diesel) Market Update

  • Pricing Trends:EN590 (10ppm diesel) in Asia tracked Brent movements, with FOB Singapore cargoes averaging around USD 95–97 per barrel, reflecting a slight +1.5% increase week-on-week. This was supported by refinery turnarounds in Korea and strong buying interest from Vietnam and Indonesia.

  • Demand & Supply:Demand across ASEAN markets remains resilient, driven by industrial and transportation sectors. Indonesia and the Philippines showed strong tender activity, while China’s exports have tightened, leading to firmer premiums in the spot market.

  • Trade & Logistics:Bunker fuel demand in Singapore contributed to stable diesel consumption. However, freight rates to South Asia edged higher, squeezing arbitrage margins from the Middle East. Buyers are becoming more selective on payment terms, with tighter credit conditions noted among independent trading houses.

  • Outlook:EN590 prices are expected to stay firm in the coming week as supply remains constrained by refinery maintenance and seasonal demand. Traders should watch for fresh tenders in India and Vietnam, which may further support premiums.


Other Commodities

  • Crude Oil: Brent crude held steady at around USD 92–94 per barrel. Market sentiment is cautious ahead of U.S. inflation data.

  • Metals: Copper prices slipped slightly due to weaker Chinese manufacturing data, while gold held above USD 2,450/oz as a safe-haven asset.

  • Agriculture: Palm oil futures in Malaysia rose modestly (+2%) on stronger Indian import demand ahead of festive season consumption.


Key Takeaway

EN590 continues to show relative strength in the Asian market, underpinned by steady regional demand and tighter supply from China and Korea. CF&E Commodities Asia should monitor upcoming tenders and shipping costs closely, as these will directly affect trading margins.

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