Hong Kong bunker fuel suppliers settle Aug 380 CST premiums at $16-19/mt

Hong Kong bunker fuel suppliers said Tuesday they have settled ex-wharf premiums for August-loading 380 CST bunker fuel with importers at $16-19/mt, a touch lower than premiums of $16-20/mt in July.
Most of the suppliers said the lower premiums -- basis the Mean of Platts Singapore 380 CST high sulfur fuel oil assessments -- were due to weaker differentials in the Singapore high sulfur fuel oil cargo market.
The differential for Singapore 380 CST HSFO -- the benchmark used to negotiate ex-wharf premiums in the Hong Kong market -- averaged minus $1.55/mt over July 1-29, compared with plus $0.31/mt in June, Platts data showed.
Hong Kong-based suppliers said demand and supply fundamentals were expected to remain the same in August, as in July.
Supply in Hong Kong is sufficient as replenishment cargoes are arriving on schedule, said suppliers. "Demand is just so so, not so bad, not so good," said one supplier Tuesday.
Meanwhile, the premiums for Hong Kong ex-wharf 180 CST bunker fuel for August were settled at $18-22/mt -- basis MOPS 180 CST HSFO assessments -- compared with 18-24/mt for July, suppliers said.
The premiums for marine gasoil in Hong Kong for August were settled at $15-17/mt to MOPS Gasoil assessments, compared with $15-16/mt in July, 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 on a delivered-price basis.
Hong Kong suppliers sell about 500,000 mt/month of bunker fuel, and the port has the capacity to store 453,000 mt of fuel oil. Of the total storage capacity, ExxonMobil owns 310,000 mt, of which 250,000-260,000 mt has been leased out to Chimbusco Pan Nation since February 2012. The rest of the storage capacity is owned by Sinopec (100,000 mt) and Chevron (43,000 mt).
Source: Platts