Hong Kong bunker fuel suppliers have settled monthly ex-wharf premiums for March-loading 380 CST cargoes, with importers, at $17.5-20/mt, down from February's $19-21/mt, market sources said Thursday.

Suppliers attributed the lower premiums to weak demand seen after the Lunar New Year holidays in Hong Kong.

Before the Lunar New Year holidays, an average of more than 10,000 mt of bunker fuel was sought in the spot market on a daily basis. But after the long break, it fell to 8,000 mt, said one trader in Hong Kong Thursday.

Meanwhile, Chevron -- which imports bunker fuel in Hong Kong -- does not have enough stock for the spot market in first-half March and will not be offering any cargoes in that period, suppliers said. The company is expected to receive a cargo replenishment in mid-March, they added.

But the absence of Chevron will not have much of an impact on prices because of weak demand, market sources said.

Other importers -- Chimbusco Pan Nation, Sinopec and ExxonMobil -- have ample stock to cover spot requirements, the sources said.

The Hong Kong 180 CST bunker fuel premium was settled at $18-22/mt for March-loading cargoes, slightly lower compared with $21-22/mt for February, suppliers said. Marine gasoil premiums were settled at $15-16/mt for March

also almost unchanged from $15-17/mt settled for February, they added. HSFO 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 negotiate the price of ex-wharf bunker fuel with suppliers as a differential to the monthly average of Mean of Platts Singapore 380 CST HSFO assessment. Suppliers then deliver the bunker 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.