South Korean bunker market oversupplied in March on weak demand, imports

South Korea's bunker fuel market is oversupplied in March due to weak demand and the arrival of imported cargoes, market sources said Tuesday.
"All four South Korean refiners want to sell," a trade source said.
Demand in February was weak due to the Lunar New Year holidays, and some of that volume has been carried over to March, he added. March demand also remains weak because of high prices, another trader said.
South Korean 380 CST bunker premiums over the Mean of Platts Singapore 380 CST high sulfur fuel oil assessments were at least $30/mt over February 22-March 8, Platts data showed. They typically hover around $20/mt higher.
Demand from LNG vessels has also faded in March, a trader said. This peaks during winter, when demand for LNG rises for heating, and the vessels take on bunker fuel mainly on the west coast of the Korean Peninsula.
Demand from LNG vessels is around 40,000-50,000 mt/month over December-February, then peters out almost entirely, one trade source said.
On the supply side, Hyundai Oilbank is especially aggressive as it has been importing 30,000-50,000 mt/month of bunker fuel since January, increasing supply on the west coast, industry sources said.
Around 31,000 mt arrived March 4 at its Daesan refinery in the country's west, a company source said.
Amid oversupply and weak demand, S-Oil reported a trade of 400 mt at $649/mt late Monday outside the Platts Market on Close assessment process, at a premium of $16.07/mt over the Mean of Platts Singapore 380 CST HSFO assessments.
Bunker prices on the west coast of the Korean Peninsula are now at parity to the south after being around $10/mt higher over December-February due to the seasonal demand from LNG vessels.
Source: Platts