Asian bunker outright prices fell in most of Asia, but the market in Japan was supported by limited stocks, traders said on Wednesday. Japan's benchmark 380-centistoke (cst) grade rose $15.00 to $370.00 a tonne against $355.00 last week, while premiums edged up to $41 from week-ago levels, on thin supply.
"Refineries in Japan are producing less fuel oil," said a Japanese trader, resulting in a tight supply. He added that refiners were using fuel oil as a feedstock to produce higher-value distillates to improve profit margins, as demand for gasoline picked up during the summer driving season.
In South Korea, the benchmark 380-cst grade lost $9.00 to $346. But the drop in bunker prices lagged the fall in Singapore cargo prices, helping to push up premiums by $1 to $17.
"Suppliers want to sell cheap," a Korean trader said, referring to last week's statement that a top South Korean refiner was set to sell aggressively. Hong Kong's benchmark 380-cst bunker fuel fell by $6.00 to $349.00, while its premiums rose by $4.00 to $20.00.