Russia’s Rosneft to raise Group I base oil supply to China in May

19 April 2012 09:41  [Source: ICIS news]

SINGAPORE (ICIS)--Russian oil giant Rosneft is planning to increase its Group I base oil supply to China by 8% month on month to 7,900 tonnes in May, traders said on Thursday.

Out of the 7,900 tonnes, all produced at the company’s Angarsk 250,000 tonne/year base oil plant, 4,900 tonnes will be low-viscosity N150 and N250, while 3,000 tonnes will be high-viscosity N450 and N650, they said.

However, major Chinese importers are not keen to buy Russian products as they will arrive in China in late May when demand from lubricant plants is expected to slow, according to traders.

The importers are seeking lower prices for May cargoes amid falling demand, traders said.

The prices of Rosneft's low-viscosity cargoes to China in April were at $1,070-1,080/tonne (€813-821/tonne) DAF (delivery at frontier) Erenhot, while its high-viscosity base oil prices were at $1,170-1,180/tonne, according to traders.   

Rosneft supplied about 7,300 tonnes of Group I base oils to China in April.

($1 = €0.76)

By: Whitney Shi
+65 6780 4359

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