Singapore—South Korea's 0.5% sulfur bunker fuel supply volume in April is expected to be similar to March at 500,000-550,000 mt, market sources said in the trading week ending April 9.
The country's largest refiner SK Energy is set to increase its supply in April, while S-Oil is planning to decrease output, industry sources said.SK Energy will be raising its 0.5% sulfur bunker supply to nearly 250,000 mt in April, up about 10,000-50,000 mt from March, as its vacuum residue desulfurization unit in Ulsan refinery is scheduled to restart this month after turnaround, a company source said.
The company had shut its 40,000 b/d vacuum residue desulfurization unit at its 840,000 b/d Ulsan refinery from March 19 to April 21 for maintenance, S&P Global Platts reported previously.
On the other hand, S-Oil is going to supply about 80,000 mt in April, down from 100,000 mt in March, bunker traders said. The reason for the reduction is not known, but bunker traders said on April 8 that S-Oil could offer spot fuel only after April 15.
Meanwhile, supply volumes from Hyundai Oilbank and GS Caltex in April are likely to be stable from March, market sources said. Hyundai Oilbank will sell about 120,000 mt in April out of its own production, while awaiting a 80,000-mt cargo arrival in mid-April. Not all of the imported cargo will be sold in April, as some of it will be carried over to May, bunker traders said.
GS Caltex is going to supply about 40,000 mt of 0.5% sulfur bunker fuel in April, of which 15,000 mt is imported, said a company source.
Supply and demand balanced-to-tad-tighterSupply was tight in January and February as SK Energy reduced supply on refinery run cuts. The tightness started to ease in March as a result of demand drop due to high prices.
"Supply in South Korea is not tight [at this moment]," said a bunker fuel trader on April 9.
Bunker demand in South Korea picked up after supply tightness eased and prices moved lower.
Looking forward, "demand and supply will be balanced or slightly tighter in April," said a bunker trader.
As GS Caltex sold spot bunker fuel actively earlier in April, the refiner can only offer for delivery after the second half of April, said the fuel oil trader.
Reflecting the tighter market, the South Korea's marine fuel 0.5%S delivered bunker premium to Singapore marine fuel 0.5%S cargo rose to $30.29/mt on April 8, the highest since March 29, Platts data showed.
South Korea's marine fuel 0.5%S delivered bunker was assessed at $496.75/mt on April 8, up $5.75/mt from April 7, outpacing the $4.46/mt on the day rise in Singapore marine fuel 0.5%S cargo, which was assessed at $466.46/mt on April 8, Platts data showed.
