South Korea's 380 CST bunker fuel price hits 3-year high on tight supply.
The price of 380 CST bunker fuel in South Korea hit a three-year high Tuesday amid tight supply. At the Asian close last Tuesday, 380 CST bunker fuel for delivery in South Korea was up $5/mt day on day to be assessed at $411.50/mt, the highest since December 10, 2014, when it was assessed at $414/mt.
Multiple suppliers were heard to be running low on bunker fuel inventory as peak winter season demand this year has exceeded expectations. Traders said the country's refineries were heard to have no plans to increase production.
A few suppliers were heard have imposed daily sales limits until replenishment cargoes arrive at the end of the month. Given the high prices in South Korea, market participants had expected some displacement of bunker fuel demand from South Korean ports to Hong Kong. This large price spread between South Korea [and other regions] has never been seen before. However, suppliers in neighboring ports said they had yet to see a noticable increase in demand, according to SandP Global Platts reports.
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|Publication:||Pakistan & Gulf Economist|
|Date:||Dec 31, 2017|
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