Hong Kong bunker suppliers settle Nov 380 CST premiums at $16-18/mt

Hong Kong bunker fuel suppliers said Wednesday they had settled ex-wharf premiums for November-loading 380 CST bunker fuel with importers at $16-18/mt above the Mean of Platts Singapore 380 CST high sulfur fuel oil assessments, compared with $16/mt in October.

The premiums were flat to slightly higher, the suppliers said.

The Hong Kong ex-wharf premium for November was weak compared with Singapore high sulfur fuel oil, which is a benchmark in negotiating Hong Kong's bunker premium.

The differential for Singapore 380 CST HSFO rose, averaging $6.37/mt over October 1-29, compared with minus $2.40/mt in September, according to Platts data.

Suppliers said Hong Kong bunker demand was weak, which prevented the premium rising.

"Sinopec is keen to sell bunker fuel on an ex-wharf basis," said one supplier.

Another supplier said importers had already secured cargoes in September, when premiums were lower, because they expected Singapore premiums would rise.

Meanwhile, premiums for 180 CST bunker fuel in Hong Kong for November were settled at $17-18/mt over MOPS 180 CST HSFO assessments, compared with $16-18/mt in October, according to suppliers.

Premiums for marine gasoil in Hong Kong for November were settled at $14-17/mt over MOPS gasoil assessments, down from $17-18/mt in October, the suppliers 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.

Importers sell bunker fuel to suppliers at the monthly average of MOPS HSFO cargo prices. 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 450,000-500,000 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 (60,000 mt), bunker suppliers said.
Source: Platts