Bunker supply tightness in Hong Kong has eased as cargoes have arrived, bunker industry sources said Friday.
Sinopec received a cargo of bunker fuel just before the Lunar New Year, while ExxonMobil received two cargoes on January 25 and 27, respectively, suppliers based in Hong Kong said.
The sizes of the cargoes were not disclosed, but the typical cargo size is 60,000-80,000 mt when Hong Kong imports bunker fuel.
"Supply and barges are OK at this moment," said a supplier.
Hong Kong's bunker supply tightened in mid-December as importers had difficulties in purchasing cargoes in Singapore. Besides, the importers were reluctant to bring in cargoes from Singapore because of high premiums.
Singapore is a major cargo source of Hong Kong bunker fuel.
Meanwhile, the supply of high sulfur fuel oil in Singapore tightened in November last year as China increased buying volumes.
The Singapore 380 CST HSFO cargo premium averaged $13.17/mt in November, up from $11.69/mt in October, Platts data showed. The average for December slipped to $11.45/mt from November, but it was still higher than the 2010 average of $1.15/mt, Platts data showed.
Meanwhile, industry sources expected Hong Kong bunker prices not to weaken in February despite the easing of the supply tightness as ex-wharf premiums for February were settled at $38-40/mt between importers and local bunker suppliers, up from $28-29/mt for January. The rise came from higher FOB Singapore premiums, Platts reported earlier.
ExxonMobil, Chevron, Sinopec and Chimbusco Pan Nation import bunker fuel mainly from Singapore and sell it to Hong Kong bunker suppliers on an ex-wharf basis.
The local Hong Kong suppliers include Chimbusco Pan Nation, Vermont, Feoso, Sinopec and Soaring Dragon. These suppliers own barges to deliver bunker fuel.
Hong Kong sells about 500,000 mt/month of bunker fuel.
