Sinopec raises base oil ex-refinery prices by CNY150/tonne

02 December 2010 06:39  [Source: ICIS news]

SINGAPORE (ICIS)--Sinopec raised base oil ex-refinery prices by CNY150/tonne ($23/tonne) on December 1, for the second month in a row, on the back of higher feedstock costs, a source with the oil giant said on Thursday.

For SN150 produced by Maoming Petrochemical, a subsidiary of Sinopec, the increase meant its price went up to CNY8,110/tonne from CNY7,960/tonne, traders said .

Sinopec planned to release only 3,000 tonnes of spot cargoes in December because the company’s output had been reduced by over 50% due to its subsidiary, Gaoqiao Petrochemical, remained off line for maintenance, and most refineries had cut their output after they had reached their annual production target, the source said.

Domestic supplies would be tight in December as Sinopec’s resources were limited and Petrochina, another leading supplier in China, was not sending cargoes to the spot market this month, said the source.

Imports were scarce as well due to limited supplies from international markets, he added.

This would add further tension to domestic supply for the rest of 2010, the source said.

Sinopec increased base oil ex-refinery prices by CNY150/tonne and released 6,000 tonnes of spot cargoes in November.

($1 = CNY6.66)

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By: Nancy Shi

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