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)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections