Russia’s Rosneft hikes Feb base oil prices to China by $65-70/tonne

30 January 2012 06:41  [Source: ICIS news]

SINGAPORE (ICIS)--Russia’s Rosneft has raised the prices of its Group I base oils for delivery to China in February by $65-70/tonne (€49-53/tonne) month on month because of strong demand, a major Chinese trader said on Monday.

The firm’s February price of its low-viscosity products is at around $1,065/tonne, which is $65/tonne higher than that in January, while that of high-viscosity products rose by $70/tonne month on month to $1,090/tonne, a trader from Manzhouli Shengshi Huaqiang said.

The prices of both products are on a DAF (delivery at frontier) Erenhot basis, the trader added.

Rosneft is planning to export over 8,000 tonnes of Group I base oils to China in February, with the majority of the cargoes bought by Manzhouli Shengshi Huaqiang, according to the trader, who added that the products are produced at Rosneft’s Angarsk refinery.

The prices rose because of rebounding demand in the Chinese market in February, when most traders in China prepare for the traditional peak season for base oil consumption in March, major Chinese traders said.

Downstream users in China switch to using high-viscosity products in March-May because low-viscosity base oils are unsuitable for lube oil processing during warmer weather.

Rosneft exported around 11,000 tonnes of Group I base oils at $1,000-1,020/tonne DAF Erenhot in January, the trader said.

($1 = €0.76)

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By: Whitney Shi
+65 6780 4359

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