30 November 2011 11:31 [Source: ICIS news]
SINGAPORE (ICIS)--Sinopec will cut base oil settlement prices by CNY340/tonne ($54/tonne) for internal supplies in December, a company source said on Wednesday.
Internal supply refers to supply by one Sinopec unit to another, or to its sister companies.
The cut reflects the continual decline of Group I base oil prices in Asia since early November, according to the source.
November free on board (FOB) prices for Group I base oils dropped by $40/tonne from October in Asia, ICIS data show.
Meanwhile, the China-based giant will keep prices stable for cargoes supplied to external companies, the source said.
However, traders said that the settlement price cut is a signal that Sinopec may also cut prices for external supplies.
Sinopec’s November internal settlement prices were CNY450/tonne below those in October.
($1 = CNY6.35)
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