HK bunker suppliers settle Jun 380 CST premium at $16-19/mt, down from May

Hong Kong bunker fuel suppliers said Wednesday that they have settled the ex-wharf premium for June-loading 380 CST bunker fuel with importers at $16-19/mt -- to the Mean of Platts Singapore 380 CST high sulfur fuel oil assessments -- lower than premiums of $17-20/mt for May.
Suppliers attributed it to a fall in FOB Singapore high sulfur fuel oil prices.
The premium for Singapore 380 CST HSFO, the benchmark used to negotiate ex-wharf premiums in the Hong Kong market, averaged $1.48/mt over May 1-28, down from $3.05/mt in April, Platts data showed.
Demand and supply in June are expected to be the same as in May, a supplier said. There is sufficient supply for bunker fuel at this moment, industry sources said Wednesday.
Meanwhile, the premium for Hong Kong ex-wharf 180 CST bunker fuel for June was settled at $18-19/mt above MOPS 180 CST HSFO assessments, compared with 18-19.50/mt for May, suppliers said.
The premium for marine gasoil in Hong Kong for June was settled at $15-16/mt to MOPS gasoil assessments, unchanged from May, 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, of which it leased out 250,000-260,000 mt 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).
Source: Platts