21 May 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--Few offers were seen for jet kerosene barges during open market trading this week (15-21 May), which caused differentials mostly to firm, sources said on Tuesday.
However, by Tuesday, buyers found some traction, with three sellers offering product in the Amsterdam-Rotterdam-Antwerp (ARA) region.
Demand from BP and Morgan Stanley was mostly unmet. However, BP managed to secure four of the seven trades this week.
Barge and cargo differentials neared parity before barges softened on Tuesday with better supply on offer. Barge differentials were at $62 (€48)/tonne and cargoes at $65/tonne. Barges traded at an outright price of $937.75/tonne FOB (free on board) ARA.
Despite the slight uptick in trade on Tuesday, sources said overall demand is weak and while some upswing is expected in the coming months from summer flying demand, it is not expected to be better than normal growth.
A source said the ongoing weak demand has caused some refiners to extend maintenance, though this could not be confirmed.
Another source said around 20-30% of requirements is coming from local production, which could account for the limited amount of barge offers.
Cargoes continue to flow into Europe and are maintaining pressure on local production, and refiners are maximising diesel over jet kerosene, but the crack spread for both products considered weak.
Shipping sources noted a consistent flow of product into the UK-Continent for late May and early June loading dates. Around 320,000 tonnes is fixed from the Middle East, around 125,000 tonnes from India, and 90,000 tonnes from South Korea. There is also produced moving around the Mediterranean.
($1 = €0.78)
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