10 January 2013 11:31 [Source: ICIS news]
SINGAPORE (ICIS)--Taiwanese refiner Formosa Petrochemical Corp (FPCC) has awarded a tender offering 300,000 barrels of jet kerosene for loading on 16-20 February to a Japanese buyer at a very strong premium, a company source said on Thursday.
FPCC awarded the tender, which closed on 9 January, at Singapore market quotes plus $1.20/bbl- $1.50/bbl FOB (free on board) Mailiao, the source said.
Premiums to Singapore market quotes for physical jet-kerosene cargoes have strengthened significantly in recent weeks amid tighter supplies from South Korea and import demand from China and Japan.
Japanese imports of jet-kerosene have increased as domestic refiners have been unable to cover requirements after maximising their heating kerosene output amid cold winter weather in northeast Asia. Demand from China has also been buoyed by stock building ahead of the Lunar New Year public holidays.
Meanwhile, supplies of jet-kerosene tightened throughout northeast Asia, particularly exports from South Korea as refiners have geared themselves to meet increased demand for heating kerosene at the expense of jet-kerosene production.
FPCC did not iusse any tenders offering January jet-kerosene. FPCC last awarded a tender offering 300,000 barrels of jet kerosene for loading on 20-24 December to a Hong Kong-based buyer at a softer premium of Singapore market quotes plus 25 cents/bbl FOB (free on board) Mailiao, the source said.
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