15 October 2012 11:22 [Source: ICIS news]
LONDON (ICIS)--Demand has increased in the jet kerosene barge market with prices firming by $27.50/tonne (€21.18/tonne) FOB (free on board) ARA (Amsterdam Rotterdam Antwerp) between 1-12 October, according to ICIS data late on Friday.
Barges maintained a higher premium to cargoes on all but two days so far this month, with premiums for barges at $90-92/tonne FOB ARA on Friday 12 October and cargo premiums at $83-85/tonne CIF (cost insurance and freight) NWE (northwest Europe).
Sources said demand has increased, but is still down on previous years, with just two cargo trades this month.
ICIS data shows nine barge trades and six cargo trades were conducted during the same period in 2011 (October 1-12).
This month has seen a diverse range of buyers returning to the market, with trading house Morgan Stanley the most active buyers, purchasing five barges or 11,500 tonnes of product from Shell, Dutch airline KLM and trading house Vitol.
However, demand has been weak in the cargo market, with two trades conducted in October, with BP and Shell both buying 30,000 tonne cargoes.
A source said buyers may be holding off purchasing cargoes in anticipation of arbitrage vessels arriving on the continent late this month from the Middle East.
($1 = €0.77)
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