S Korea's 380 CST bunker premium falls to two-month low on ample supply

South Korea's 380 CST bunker fuel premium to Mean of Platts Singapore 380 CST high sulfur fuel oil cargo assessments fell to $19.55/mt Wednesday, the lowest since March 22, due to ample supply, according to Platts data.
South Korean 380 CST bunker fuel was assessed at $618/mt Wednesday, down $7.50/mt from the previous day, while the MOPS 380 CST HSFO cargo assessment slid $4.02/mt to $598.45/mt, Platts data showed.
The low premium was due to ample supply from refiners and possibly a problem at one of the South Korean refiners' residue fluid catalytic crackers, industry sources said. Further details on the RFCC issue could not be confirmed.
This week, South Korean refiner S-Oil has been the most active seller in the market, with its offer for 380 CST bunker fuel down to $611/mt late Wednesday after the Market on Close assessment process, sources added.
Other South Korean refiners, GS Caltex, Hyundai Oilbank and SK Energy also have healthy supplies, sources added.
South Korea sells about 700,000 mt/month of bunker fuel, with Busan in the southeast being the largest bunkering port.
Source: Platts