South Korean Refiners to Add More April Spot Diesel Cargoes

Some South Korean refiners are adding diesel spot supplies for April to the market after several sale tenders concluded in the past week, tender documents showed, and sources told Reuters.

• Both GS Caltex and SK Energy offered at least five more 10ppm sulphur gasoil cargoes for the second-half of April loading. This is in addition to having sold at least 11 spot cargoes since the start of last week at discounts of more than $1/bbl, a source said.
• This would total 16 spot cargoes which would be similar to February loading-volumes.
• The additional supply from South Korea could offset a possible decline in Chinese supply in April that are expected at below 1mn tons and place a ceiling on refining margins in the short term, sources said.
• Refining margins for March have averaged at $21/bbl, down from $24.60/bbl in Februry, LSEG data showed.
• The increase in spot offers after a slight recovery in refinery runs there after a portion of refinery and derivative unit planned maintenance ends, one of the two sources said.