The average price of 380CST bunker fuel oil in East China has been around US$5/mt lower than those in Hong Kong in October, C1 data show.
The price in East China was US$14/mt lower than that in Hong Kong on Oct 12, which has been the widest spread so far this month.
This is in stark contrast to prices in September, in which the price was about US$15/mt higher in East China than in Hong Kong.
Bunker fuel oil prices in East China have gone up by just about US$5/mt this month, versus over US$20/mt of price hikes in Hong Kong and Singapore. Price gains in East China have been much smaller because of average sales and fierce competition, according to market sources.
Prices in Hong Kong have gained much more because of tight supply. Some demand has been diverted to ports in the Pearl River Delta as supply was short in Hong Kong this month, said a bunker supplier in Hong Kong.
The prices in East China are likely to stay relatively low in the rest of the month, though supply shortage is expected to soften in Hong Kong in late October.
