Taiwanese state-owned refiner CPC is seeking jet fuel for June-July delivery in a rare tender, amid a slight recovery in domestic demand and to fill a supply gap caused by refinery maintenance, said market participants.
CPC is seeking 300,000 bl for delivery to Taiwan's Shen Ao safe port in a five-day range from 16 June-15 July, to the Shen Ao and Kaohsiung safe ports in a five-day range over the same period, or to be mutually agreed otherwise. The pricing basis is on the average of Singapore spot assessments on a cfr basis. Offers have to be submitted by tomorrow and will remain valid until 22 May.
The purchase comes amid refinery maintenance, with a crude distillation unit and residual desulphuriser at CPC's 200,000 b/d Taoyuan refinery having a turnaround from early May to mid-July, said market participants. There is also a slight recovery in Taiwan's domestic cargo flights because of the need to transport goods like medical supplies, although passenger flights remain limited because of the Covid-19 pandemic.
The last time CPC sought jet fuel was possibly for October delivery last year, meeting a supply shortage during a turnaround at its 350,000 b/d Kaohsiung refinery. Trading firm Vitol could have won the tender at around a $0.80/bl premium to the average of Singapore spot assessments on a cfr basis, said market participants, although this could not be confirmed with CPC.
The tanker Hafnia Leo loaded 35,000t (276,000 bl) of jet fuel from Daesan, South Korea on 13 October last year and discharged it at Shen Ao on 16 October, data from oil analytics firm Vortexa show. Taiwan has not imported any jet fuel after that, according to Vortexa data.
CPC could have previously sold a 300,000 bl cargo for loading from Kaohsiung in April at a slight discount to the average of Singapore spot assessments, said market participants, although this could not be confirmed with the refiner.
Taiwan is a net exporter of jet fuel. It exported an average of 16,000 b/d during January-April this year, most of which went to Hong Kong and the US, according to Vortexa data.
