Bitumen Trade Flows Shift: South Korea Gains Edge in Southeast Asia
South Korean bitumen exports are poised to enter Southeast Asian markets in the coming months, spurred by a favorable arbitrage opportunity between the two regions, according to industry sources.
South Korean Export Prices Drop Sharply
Export prices from South Korea fell significantly in early April, driven by “weakening crude oil and high-Sulphur fuel oil” markets as Argus says. This platform also states that on April 10, a Yeosu-based refiner finalized an export tender offering up to four cargoes for May and June loading. The deal settled at $375–385/t FOB South Korea, reflecting growing downward price pressure.
In contrast, FOB Singapore bitumen prices have declined at a slower pace, thanks to production curtailments that have tightened spot supply. Most Singapore refiners had already committed their April and May-loading cargoes, although some traders reportedly continued to hold unsold volumes.
South Korean Supply Rises as Arbitrage Opportunity Grows
South Korean refiners have been more active than usual in the export market. One refiner issued three separate export tenders in March alone, a notable increase from the typical one per month. This steady flow of April- and May-loading cargoes has added to regional supply.
At the same time, the arbitrage spread between FOB Singapore and FOB South Korea widened considerably—reaching $42.50/t on April 10, up from $22.50/t the previous week. This marks the widest spread since November 2024, when similar premiums were observed.
With the arbitrage window now open, traders who secured cargoes through the recent South Korean tender are reportedly considering rerouting shipments toward Southeast Asia instead of their usual destination, east China.
Weakening Demand in China Shifts Export Flows
Domestic bitumen prices in eastern China have come under pressure, with futures falling consistently through the week ending April 11. Additionally, a depreciating yuan against the U.S. dollar has further eroded Chinese interest in South Korean imports.
As a result, Southeast Asia—particularly Vietnam—has emerged as a more attractive destination for South Korean bitumen.
Vietnam’s Market Heats Up Amid Growing Supply Pressure
Vietnam’s bitumen demand has remained relatively strong compared to other Asian markets. However, intensifying competition in northern Vietnam has been observed in 2025, driven by increased exports from southern China.
With South Korean suppliers now likely to join this competitive landscape, Singapore-origin bitumen imports into Vietnam could temporarily be displaced, according what Argus reported from market watchers.
