South Korea HSFO bunker spread against Singapore widest in nearly three years
19th July 2022 09:59 GMT

The Platts South Korea-delivered 380 CST high sulfur fuel oil bunker price spread against Singapore was widest in over 34 months at $100/mt July 19, S&P Global Commodity Insights data showed, as supply tightened because of strong demand in South Korea.

The spread was at $100/mt for the second straight day and was last widest at $101/mt Sept. 2, 2019.

A steady pickup in HSFO bunker demand at South Korean ports since July has led suppliers to extend delivery lead times, as an inventory drawdown reduced product availability, traders said July 19.

“Supplies is a little tight temporarily, but we could still handle and meet demand … The earliest delivery dates indicated are more delayed than usual,” according to a South Korea-based refiner.

At least one refiner is reportedly facing supply issues amid limited slots for prompt bunker deliveries, market sources said.

“More container vessels are arriving [in July] compared to the previous month, because port congestions along the US West Coast ports are easing,” the refiner said.

Meanwhile, ample HSFO supply in Singapore is likely to weigh on bunker premiums while demand remains lukewarm, according to market sources.

South Korean importers might seek more HSFO imports from Singapore and Malaysia to supplement inventories in the wake of rising demand.

Platts South Korea-delivered 380 CST HSFO bunker premium against the benchmark FOB Singapore 380 CST HSFO cargo assessment rose to an average of $89.03/mt over July 1-18, from $71.86/mt in June, S&P Global data showed.

Bunkerworld .,
19th July 2022 09:59 GMT