Delivered marine fuel 0.5%S prices fell to new lows across North Asian ports, tracking the decline in international crude markers, as the Wuhan coronavirus outbreak weighed on sentiment.

On Thursday, Platts had assessed delivered marine fuel 0.5%S at Shanghai and Hong Kong at a three-and-a-half-month low of $595/mt and $570/mt, respectively, both down $15/mt from Wednesday. Platts had assessed the same delivered grade at South Korean ports at a two-month low of $570/mt, $10/mt lower on the day.

“The supply and demand balance has shifted. There’s an inventory backlog and we can’t sell…we will have to start selling at a loss,” a China-based trader said.

Concerns over the global impact of the outbreak on economic growth had caused crude markets to spiral lower since markets re-opened Tuesday after the Lunar New Year holidays.

“Shipowners are more conservative in purchasing bunkers, and [coupled] with a traditionally slow season post Lunar New Year, we hold a pessimistic view of the market in February,” a Hong Kong-based supplier said.

Market sources were also uncertain when China’s bunker fuel customs personnel will return to work, as an extended absence could hamper bunkering at Chinese ports.

“If customs clearance cannot be processed, we cannot supply bunkers,” another Hong Kong-based source said.

China had extended the Lunar New Year holidays from this Friday to next Monday, as part of a concerted attempt to control the spread of the coronavirus. In addition, companies in China have advised staff to work from home after the holidays end next week.

“Zhoushan district has also been isolated, might need to arrange for special transportation [to return to work],” the Chinese trader said.

Zhoushan falls under China’s Zhejiang Free Trade Zone, and the provincial government is taking great measures to propel Zhoushan to be the bunkering centre in Northeast Asia.