Russia’s Rosneft raises January base oil prices to China

22 December 2011 12:33  [Source: ICIS news]

SINGAPORE (ICIS)--Russia-based Rosneft has raised prices of Group I base oils for January delivery from its Angarsk refinery to China, on the back of tight supply and higher costs, a Chinese trader said on Thursday.

The prices of January-lifting low-viscosity products rose to approximately $1,000/tonne (€770/tonne), up by $30-50/tonne from December’s level, while the price of high-viscosity products increased by $50/tonne to $1,020/tonne, both on a DAF (delivered at frontier) basis to Erenhot, a trader at Shengshi Huaqiang said.

Rosneft planned to export 11,000 tonnes of Group I materials to China in January and approximately 10,000 tonnes of this was ordered by Shengshi Huaqiang, according to the company.

The refiner made the price hikes because Chinese importers show higher interest in Russian cargoes in view of tighter suppliers of Group I base oils in China, an industry source said.

Moreover, production costs have increased on stronger crude, the source added.

In December, Rosneft exported 8,000 tonnes of Group I base oils to China at $950-970/tonne DAF Erenhot.

($1 = €0.77)

By: Whitney Shi
+65 6780 4359

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