S Korea's delivered 0.5% sulfur bunker differential to gasoil hits 10-month low
21st April 2021 07:21 GMT

Weak demand of delivered marine fuel 0.5%S bunker at South Korea's Busan and Ulsan ports led its differential to Singapore 10 ppm gasoil drop to a near 10-month low on April 20, S&P Global Platts data showed.

The differential between delivered marine fuel 0.5%S at Busan/Ulsan and FOB Singapore 10 ppm sulfur fell to minus $22.55/mt on April 20. It was last lower on June 23, at minus $30.86/mt, Platts data showed.

The delivered South Korea marine fuel 0.5%S bunker was assessed at $507/mt on April 20, while FOB Singapore 10 ppm sulfur gasoil was assessed at $71.08/b ($529.55/mt), Platts data showed. The differential was positive mostly over August 2020-March 2021.

"Demand is lackluster. Zhoushan prices are weak, taking demand. Supply [in South Korea] is maintained," said a refinery source.

"Demand is still weak, even Korean prices are lower than Singapore. And it seems suppliers have ample availability, so they want to sell," said a South Korea-based bunker trader.

South Korean marine fuel 0.5%S prices were lower than Singapore on April 20, for the first time since Feb. 17, according to Platts data. Singapore delivered marine fuel 0.5%S was assessed at $511/mt on April 20.

Currently, Zhoushan marine fuel 0.5%S prices are the lowest in Asia, as the port sees increasing supply from domestic refineries.

A bunker trader at a South Korean company said: "Some ships, maybe 10%-20%, are moving [from South Korea] to China for bunkering."


Platts ,
21st April 2021 07:21 GMT