Traders say bunker prices at Hong Kong will be supported by tight supplies and strong demand.
Traders say bunker prices in Hong Kong in December will get a boost from by tight supplies and strong demand, according to a report by Platts.
"Demand has been pretty robust since November and for December, we are still seeing good demand due to tightness in Singapore and South Korea so some demand from there has shifted to Hong Kong," a Hong Kong-based trader told Platts Tuesday.
Another trader credits some of Hong Kong's tightness in avails to demand transferred from Northern Asian ports, where have rough waters are said to be hampering operations, reported tightness in Singapore avails, and cargo delays in Hong Kong.
Hong Kong-Based Trader
There are some companies who will want to keep low inventory levels for their year-end financial reporting
Another trader commenting on the situation said: "there are some companies who will want to keep low inventory levels for their year-end financial reporting so there are less supplies coming in as well.... we have been advised to take all our loadings before Christmas, so once we sell out, it's a 'close-shop' situation for us."
A number of traders suggested Hong Kong's price upswing is likely to ease sometime next month.
According to Ship & Bunker data, prices have been rising for the past week, with IFO 380 rising from $305 per metric tonne (pmt) last Wednesday to $334.50 pmt on Tuesday.