HK Suppliers Settle Apr 380 CST Bunker Premium at $17-19/mt, from $16-19/mt in Mar

Hong Kong bunker fuel suppliers said Wednesday that they have settled the ex-wharf premium for April-loading 380 CST bunker fuel with importers at $17-19/mt -- to the Mean of Platts Singapore 380 CST high sulfur fuel oil assessments -- slightly higher than premiums of $16-19/mt for March.

Suppliers attributed the rise to higher FOB Singapore high sulfur fuel oil prices.

The differential for Singapore 380 CST HSFO - the benchmark used to negotiate ex-wharf premiums in the Hong Kong market -- averaged $2.73/mt over March 1-26, compared with minus $0.20/mt in February, Platts data showed.

But the rise in the Hong Kong market lagged the Singapore market due to weak regional demand, sources said.

"Importers are keen to sell," said one Hong Kong supplier, adding that with demand expected to remain weak, the April premium could not be increased further.

Meanwhile, the premium for Hong Kong ex-wharf 180 CST bunker fuel for April was settled at $18-20/mt -- to MOPS 380 CST HSFO assessments -- unchanged from March, suppliers said.

The premium for marine gasoil in Hong Kong was settled at $14-18/mt -- to MOPS 380 CST HSFO assessments -- for April, compared with $15-18/mt for March, they said.

Fuel oil is imported into Hong Kong by ExxonMobil, Chevron, Sinopec and Chimbusco Pan Nation, mainly from Singapore, and sold on an ex-wharf basis as bunker fuel to local traders and major suppliers like Chimbusco Pan Nation, Vermont, Feoso, Sinopec and Soaring Dragon. These suppliers then deliver the fuel to ships using their own barges at delivered-basis prices.

Hong Kong suppliers sell about 500,000 mt/month of bunker fuel, and the port has the capacity to store 453,000 mt. Of the total storage, ExxonMobil owns 310,000 mt, leased 250,000-260,000 mt of that to Chimbusco Pan Nation in February 2012. The rest of the storage capacity is owned by Sinopec (100,000 mt) and Chevron (43,000 mt).