Shining a light on Numerco

Wednesday 7th Aug 2019|London

Numerco Limited is an independent commodity supply company headquartered in the UK, specialising in both the sourcing and supply chain optimisation of physical materials, energies and industrial products. Topics covered include:

1. Nuclear fuels

2. Distillate DMA fuels

1. Nuclear Fuels.

The market leader with nearly 40 years’ collective experience in the nuclear fuel industry, the Numerco team has developed long term relationships with utilities across the globe as well as supply channels spanning the breadth of the supply chain.  This reach, coupled with a comprehensive understanding of both the supply cycle and finance, efficiently bridges the market preferences for location, form and duration and present the sharpest possible pricing. “Provenance in terms of price discovery just does not get any better in terms of spot and more importantly forward pricing. The historic (Buy & Hold) strategies now come with an extra level of granularity and certainty with the development of the spot price adjusted forward for capital costs. With the long-term price adjusted forward for inflation, the forward curve is part model and part market sentiment.”

2. Distillate DMA fuels

Effective 2020, the UN International Maritime Organisation has reduced the cap on the sulphur content of marine fuel from 3.5% to 0.5%.  This transition to a low sulphur fuel is expected to have significant implications on the industry at all levels and result in large scale increases in the consumption of distillate DMA fuels. Marine gasoil specialist, the Numerco team is specifically dedicated to facilitating transactions in marine gasoil, focussing not only on the liquid North West European hubs, but also on the broader regional coaster and cargo markets across the UK, Scandinavia, Mediterranean and West Africa.  We aim to constantly monitor relative pricing, with the objective of identifying and smoothing regional differences to produce the most economical supply options to our clients.

It is not known how ready the industry will be for the Jan-1 2020 changes to the low sulphur fuel legislation.  What we do know however is that the new regulation is projected to have far reaching consequences on the environment and is also set to impact the global economy, requiring companies in commercial shipping, bunkering and refining industries to implement significant operational changes. Industry experts have said “IMO’s upcoming sulphur cap will cause a major shake-up in the fuel mix used by the shipping industry. “The new legislation not only affects the end-user shipping community but also the supply side including refiners, storage and blending companies, and traders.” Numerco have been pricing this product since 2017 in preparation for this change.” 

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