HK suppliers settle Mar 380 CST bunker premium at $16-19/mt, flat from February

Hong Kong bunker suppliers said Wednesday that they have settled the ex-wharf premium for March-loading 380 CST bunker fuel with importers at $16-19/mt to Mean of Platts Singapore 380 CST high sulfur fuel oil assessments, unchanged from February, suppliers based in Hong Kong said Wednesday.
The premium was unchanged despite higher Singapore HSFO values, because demand in Hong Kong was sluggish, suppliers said.
"Importers want to keep demand going," said a supplier, explaining why premiums didn't increase.
The differential for Singapore 380 CST HSFO, which is the benchmark used to negotiate Hong Kong's ex-wharf premium, averaged a discount of $0.22/mt over February 1-26, compared with a discount of $0.92/mt in January, Platts data showed.
Bunker demand in Hong Kong remains weak even after crude prices dropped in the second half of February, market sources said.
"I have not seen any good demand [after crude prices fell], maybe because the shipping market is not good. Ships are not active," said a trader.
Meanwhile, the premium for Hong Kong ex-wharf 180 CST bunker fuel for March was settled at MOPS 380 CST plus $18-20/mt, also unchanged from February, suppliers said.
The premium for marine gasoil was settled at $15-18/mt to MOPS for March, also unchanged from February, 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. It leased 250,000-260,000 mt to Chimbusco Pan Nation in February 2012. The rest is owned by Sinopec (100,000 mt), and Chevron (43,000 mt).
Source: Platts