The main Asian fuel exporters increase their sales of kerosene to Europe in July

Kerosene exports from South Korea. However, China and Southeast Asia to Europe have probably reached a record level over several years in July, merchants taking advantage of regional overabundance to take advantage of the higher prices made on the old continent, according to maritime follow-up and industrial sources.

Asian exporters are expected to send between 600,000 and 775,000 metric tonnes (4.728 to 6.107 million barrels) from Kerosene to Europe this month. Meanwhile, according to vortexa figures and three sources from the trade and maritime transport sector, the majority from China and South Korea.

Vortexa estimates that this volume borders on a summit of almost three years. Nevertheless, while commercial sources mention a record over five years.

Last month, exports from Northeast Asia to Europe rose to almost 500,000 tonnes.

These high volumes to the west continue to alleviate the overabundance of the main asian fuel exporters increase offer in Asia. to limit the low regional prices.

“Arbitration was favorable until mid-July. ” said Ivan Mathews, head of APAC analysis at Vortexa, while providing for a slowdown in exports in August, the arbitration margins being tightened.

The physical prices of kerosene in North West Europe were on average $ 65 per tonne to those in Asia. against $ 50 per tonne in the previous month, according to LSEG data.

At the same time, the shipping cost of 90,000 tonnes of kerosene on LR2 oil tankers fell to an average of $ 3.75 million in July, against 4.4 million in June, according to figures from the SSY maritime broker, after the end of the Iran-Israel conflict.

In Europe. the average number of daily flights for July is up 4 % over one year and 1 % compared to the levels of 2019, according to Eurocontrol, highlighting the vigor of main asian fuel exporters increase demand.

Air fuel stocks held independently in the Amsterdam-Rotterdam-Anvers (ARA) refining. storage hub amounted to 745,000 tonnes last week, their lowest level since February, according to the Dutch Global Insights.

This level remains below the annual average of 846,000 tonnes and the weekly average of 2024, fixed at 881,000 tonnes.

Robust exports from China have also contributed to this trend. The world’s leading refiner is expected to send more than 2.3 million tonnes of kerosene in August, a volume similar to July, according to estimates in the sector.

Global kerosene. aviation fuel exports from China should remain raised in the coming months, Sinopec, its main refiner, increasing its production while domestic demand is stabilized, according to a note from analysts from the FGE consulting firm.

Kerosene remains the most profitable product for Chinese refiners compared to other products, two trade sources based in China said.