Japan`s bunker demand in February has weakened due to Lunar New Year holidays and high prices, with sales in the month expected to total 300,000 mt or less, market sources said Thursday.
Sales in January were estimated at 320,000-330,000 mt, while sales in February 2012 totaled 316,976 kl (about 312,221 mt), according to the Ministry of Economy, Trade and Industry.
Bunker demand from Chinese shipping companies fell during the Lunar New Year holiday period that began February 11.
Japan`s bunker prices also remained high in comparison to ports in nearby countries like South Korea, and vessels departing Japan were opting to source bunker fuel there, market sources said.
Japan`s 380 CST bunker premium over South Korea rose to $21.08/mt over February 1-20 after averaging $12.25/mt in January, according to Platts data It was also priced $39.71/mt higher than Singapore 380 CST bunker fuel on average over February 1-20, widening from $39.33/mt in January. That spread averaged $32.55/mt in 2012.
Bunker traders based in Tokyo said supply was ample all over Japan amid weak demand. However, South Korean bunker prices were even weaker, also due to thin demand and ample supply.