The China National Aviation Fuel Corp (CNAF), China's dominant jet supplier, fixed the benchmark price of jet it supplies to domestic airlines at Yuan 6,020/mt on Jan 1, up Yuan 310/mt or 5.43% from the fourth quarter of 2010, according to a source with a domestic airline company.
The actual settlement price for jet supplies to domestic airlines was at the benchmark price plus a negotiated premium, which would be settled by CNAF and various airports. The settlement price for domestic airlines in Guangzhou airport, for instance, was Yuan 6,400/mt with a negotiated premium of Yuan 380/mt; while for those in Shenzhen airport, the price was Yuan 6,360/mt with Yuan 340/mt of negotiated premium. The premiums were unchanged.
The benchmark price was pushed up by Yuan 300/mt to Yuan 6,010/mt on Dec 22, 2010 when China hiked retail ceilings of oil products.
In Singapore market, the average FOB price of jet for the fourth quarter of 2010 climbed 13.87% from the previous quarter.
Since 2007, CNAF adjusts prices of jet to be supplied to domestic airline companies each quarter, with the previous quarter's crude and jet prices in both international and domestic markets as references.
The actual settlement price for jet supplies to domestic airlines was at the benchmark price plus a negotiated premium, which would be settled by CNAF and various airports. The settlement price for domestic airlines in Guangzhou airport, for instance, was Yuan 6,400/mt with a negotiated premium of Yuan 380/mt; while for those in Shenzhen airport, the price was Yuan 6,360/mt with Yuan 340/mt of negotiated premium. The premiums were unchanged.
The benchmark price was pushed up by Yuan 300/mt to Yuan 6,010/mt on Dec 22, 2010 when China hiked retail ceilings of oil products.
In Singapore market, the average FOB price of jet for the fourth quarter of 2010 climbed 13.87% from the previous quarter.
Since 2007, CNAF adjusts prices of jet to be supplied to domestic airline companies each quarter, with the previous quarter's crude and jet prices in both international and domestic markets as references.
