Russia’s Rosneft cuts August Group I base oils price to China

03 August 2012 09:39  [Source: ICIS news]

SINGAPORE (ICIS)--Russia’s Rosneft has cut its offer for high-viscosity Group I base oils to China by $20/tonne (€16/tonne) month on month to $960/tonne for August delivery, a Chinese importer said on Friday.

The producers cut its offers as it redirected more volumes to China because the demand from Europe is weak, the importer said.

The company is planning to export about 12,530 tonnes of Group I base oils to China in August, including 7,900 tonnes of low-viscosity and 4,630 tonnes of high-viscosity product, the source said.

The volumes were produced by the company’s 250,000 tonne/year Angarsk base oil plant in Russia.

Low-viscosity grades were offered unchanged at $870/tonne on a DAF (delivered at frontier) Erenhot basis for August, the source said.

However, prices of imported Group I base oils from Russia are expected to rise this month in the Chinese market as lubricant producers may restock in preparation for the peak consumption season in September, many China-based traders said.

Chinese lubricant producers will switch to producing low-viscosity base oils during the colder September-December period.

($1 = €0.82)

By: Whitney Shi
+65 6780 4359

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