S Korea's 380 CST bunker premium falls to 9-month low on ample supply

South Korea's 380 CST bunker premium over the Mean of Platts Singapore 380 CST high sulfur fuel oil assessments fell to $16.10/mt Wednesday, its lowest since August 29, Platts data showed.
The premium was $10.64/mt August 29.
South Korean 380 CST bunker fuel was assessed at $627.50/mt Wednesday, flat from Tuesday. However, MOPS 380 CST HSFO rose $2.55/mt to $611.40/mt over the same period.
The 380 CST trades were fixed at $620-626/mt for delivery to South Korean ports after the Platts Market on Close assessment process Wednesday, said a trade source Thursday.
South Korean 380 CST prices have been weak compared with MOPS since mid-June because of sluggish demand and ample supply.
South Korean refiners had higher supply this month than in May after refinery turnarounds ended, a trader said. S-Oil restarted its 250,000 b/d No. 3 crude distillation unit on May 6, and Hyundai Oilbank resumed operations at its 280,000 b/d CDU on May 13.
With the expectation of higher supply, term premiums for June delivery 380 CST bunker fuel traded at $16-21/mt over MOPS 380 CST HSFO, down from 23-24/mt for May delivery, Platts reported previously.
South Korean refiners sell 700,000-800,000 mt/month of bunker fuel.
Source: Platts