23 March 2011 03:09 [Source: ICIS news]
SINGAPORE (ICIS)--Oil major ExxonMobil will raise its Asian base oil prices by $50/tonne (€35/tonne) next month amid tight supplies, the company’s customers said on Wednesday.
The price hike for Group I and II base oils, which will be implemented on 1 April, follows an earlier increase of $60-70/tonne on 15 March.
The major’s Singapore ex-tank prices will be revised up to around $1,303-1,308/tonne ex-tank for SN-150/150N, $1,377-1,382/tonne ex-tank for SN-500/500N and $1,573/tonne ex-tank for brightstock.
Most of its customers had earlier braced themselves for a new round of price hikes as an ongoing maintenance shutdown at ExxonMobil’s 1.2m tonne/year Group II facility in Singapore had led to tight supplies.
"It didn’t come as a surprise. We know Exxon’s supplies are tight. It is difficult to get additional quantities from them," said a customer.
ExxonMobil is expected to resume production at its Singapore base oils unit in the second half of April.
Spot supplies from other Asian refiners have also fallen because of a spate of turnarounds between March and June.
Shell took its 380,000 tonne/year Group I base oils unit off line in early March for maintenance and the unit is due to restart in the first half of April.
South Korea’s SK Lubricants shut its Group III facilities in Ulsan on 7 March for maintenance. The two units, with a total Group III capacity of close to 1m tonnes/year, is expected to resume operations at the end of the month.
($1 = €0.70)
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