Wednesday, 02 January 2013 17:16
SINGAPORE: Taiwan's CPC Corp has offered a rare kerosene cargo in the spot market, likely tapping firm demand from North Asia due to an unusually cold winter, traders said on Wednesday.
The cargo could also be a by-product of a new residue fluid catalytic cracker (RFCC) which started up in November, one of the sources said.
CPC last offered kerosene about four years ago, the source added.
The state-owned refiner is offering 50,000 to 150,000 barrels of kerosene for loading over Jan. 20 to Feb. 28 from Kaohsiung, Taiwan.
It is also offering 50,000 to 150,000 barrels of 10 ppm sulphur diesel, 50,000 barrels of 1 percent sulphur gasoil and 150,000 to 480,000 barrels of 500 ppm sulphur diesel for the same delivery dates.
The tender closes on Jan. 4, with same-day validity.
CPC started up the new 80,000 barrels-per-day RFCC at its 300,000 bpd Talin plant in early November, which is expected to boost diesel and gasoline exports from the plant, sources have said.
The company last sold 250,000 to 300,000 barrels of 500 ppm sulphur diesel and 60,000 barrels of 1 percent sulphur gasoil for January loading at a discount of 20 cents and discounts of between $2.10 and $2.20 to Singapore quotes respectively.
It last offered a 10 ppm sulphur diesel cargo for January to December loading, but later cancelled the cargo.
Kerosene demand in Japan due to a cold winter has also been boosting premiums out of South Korea, which have jumped more than double from the same period last year.
Center>Copyright Reuters, 2013