Shanghai 380 CST bunker fuel premium to S Korea rises to 3-week hi


The premium for 380 CST bunker fuel delivered in Shanghai versus South Korea widened to a three-week high of $3.50/mt Thursday, as South Korean prices fell on strong selling pressure.

Trade sources attributed South Korea’s price dip to suppliers attempting to fill orders for July. They said some have 40-60% of their July supply unsold.

Shanghai 380 CST delivered bunker fuel was assessed at $618/mt Thursday, with its South Korea counterpart at $614.50/mt.

The Shanghai-South Korea spread flipped from a $3/mt discount Wednesday. The last time the Shanghai premium was higher was June 25 at $5/mt.

South Korean prices have been higher than Shanghai most trading days since late June. Thursday was the first in nine sessions that South Korea 380 CST delivered bunker fuel traded at a discount to Shanghai.

Shanghai and South Korea are competitive bunker fuel markets, and suppliers in both regions use pricing to draw more orders from shipowners.

Source from : Platts