S Korea's Hyundai to start supplying low sulfur bunker from June 14 at Busan

South Korean refiner Hyundai Oilbank plans to start supplying 380 CST bunker fuel with a maximum sulfur content of 1% from its Busan terminal on June 14, a company source said Tuesday.
The Busan terminal is located in the country's southeast. Currently, the refiner only supplies the western ports with low sulfur bunker fuel from its 390,000 b/d Daesan refinery. It sells around 2,000-3,000 mt/month of the grade at the western ports, the source added. But as South Korea's major bunkering ports are in the southern and eastern coasts, Hyundai sales from Busan are expected to be higher, he added.
With all four South Korean refiners now supplying low sulfur bunker fuel, prices are expected "go down [due to the competitions]," said a trader.
Premiums of low sulfur bunker fuel are expected to be around $130/mt over the Mean of Platts Singapore 380 CST high sulfur fuel oil assessments, for delivery to Busan, industry sources said.
South Korea has been receiving demand for 30,000-50,000 mt/month of low sulfur bunker fuel since last year.
The International Maritime Organization designated waters off North America as part of the Emission Control Area as of August 1, 2012. This policy required vessels to use bunker fuel with a maximum sulfur content of 1%.
Hyundai typically sells about 150,000-160,000 mt/month of bunker fuel, including high sulfur, low sulfur, marine gasoil and marine diesel oil.
Total bunker fuel sales in South Korea, including high sulfur and low sulfur products, is estimated to be about 700,000-750,000 mt/month.
Source: Platts