28 May 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--There was little demand in the European jet kerosene market in the week from 21 to 28 May as participants used product in stock and there was little extra demand from the open market, sources said on Tuesday.
While market players described conditions as “really quiet” – in part a result of a public holiday in the UK on Monday – ICIS data shows the number of deals done during open market trading during May 2013 is on a par with or slightly above May 2012 levels.
Conversely, the paper market experienced a surge of activity in the past week, which sources attributed to a change in position by some majors.
A trader said a few players that had held the same view of the market have changed their mind and are taking longer positions, which is creating a bit more trade.
BP and Morgan Stanley were the only buyers during the physical open market trading sessions this week, picking up two barges apiece, while the cargo market saw trades from Vitol to Shell and BP.
Barge prices were at $942.75/tonne (€725.92/tonne) FOB (free on board) ARA (Amsterdam-Rotterdam-Antwerp) on Tuesday, a $20.50/tonne increase from Friday – a result of a rally on ICE gasoil values.
Barge differentials maintained their premium over cargoes, with some tightness still in the barge market, a result of lower local output. Market sources said a major producer was having some issues, however, this could not be confirmed.
Barge differentials eased ahead of cargoes to $67/tonne, with cargoes at $65/tonne on Tuesday.
($1 = €0.77)
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