In Singapore market, FOB price of jet was US$84.55/bbl on average during Aug 19-25, versus the average of US$91.07/bbl in Aug 5-11. Based on the average for latest week, Chinese refineries could get about Yuan 4,432/mt of earnings by exporting jet to Singapore when excluding freight rates. However, the refineries could receive Yuan 4,590/mt, about Yuan 158/mt higher, by selling such resources in the domestic market if calculated by Yuan 5,370/mt of ex-refinery price, with 17% value-added tax exclusive. Export earnings were Yuan 178/mt higher than domestic sales two weeks ago.
If calculated by the US$84.55/bbl of jet price in Singapore, import cost of the fuel was Yuan 5,762/mt, with freight rates and taxes inclusive, Yuan 392/mt higher than domestic prices. The cost was Yuan 808/mt higher than domestic sales two weeks ago.
China National Aviation Fuel has been stepping up jet purchases from the domestic market, in face of negative import margins and augmented in output from domestic refineries, industry sources denoted.
In the first seven months of this year, China's kerosene output marked a year-on-year rise of 26.06% while imports down 12%, according to official data.
The Chinese government levied no consumption tax on jet imports at present.
China Chemical Weekly: http://news.chemnet.com/en/detail-1403616.html
