Asia/Pacific News
Busan Bunker Prices Jump on Tight Supply
Tight supply and strong demand caused South Korean bunker prices to rise for two straight days at the end of last week, Platts reports.
Ship & Bunker data shows that the price of IFO380 at the Port of Busan jumped $16.50 per metric tonne (pmt) to $198.50 pmt on Friday.
"The market is tight at the moment. Two refiners were heard to have very limited volumes last night [Thursday] -- I heard one of them is waiting for new cargoes to arrive, so before they receive it, they can only sell their own production," an unnamed trader was quoted as saying.
"Another refiner was heard to be doing stock taking yesterday [Thursday], so they did not offer [cargoes] as well, but they are expected back into the market maybe today [Friday] or next week."
The trader said that there was also reports of loading problems and congestion at terminals as a result of frequent vessel schedule changes.
"Barge availabilities are all tight so cargo prices and premiums are going up even though crude prices are falling," a separate source said Thursday.
Friday's jump put Busan's IFO380 price premium over Singapore at $45.50 pmt.
"Some refiners are only offering [bunker fuel] from an earliest supply date of January 23, but still, it was heard that some bunkering inquiries for supply on that date were rejected," the trader added.
Earlier this month, Ship & Bunker reported that a new order from South Korea's Ministry of Oceans and Fisheries means by mid-2017 all bunker tankers, and petroleum, oil, and lubricants (POL) tankers dedicated providing marine fuel at the country's ports will have to be registered.
