Japan’s Cosmo Oil halves September bitumen supply to China

29 August 2012 10:21  [Source: ICIS news]

SINGAPORE (ICIS)--Japan’s Cosmo Oil will cut its bitumen supply to China by half to around 8,000 tonnes in September, as a result of scheduled plant maintenance that will lead to a production loss, a company source said on Wednesday. The source did not give details on the shutdown.

The company will send only two cargoes to China in September, compared with four in August, the source said.

The refiner has reached an agreement with a trader based in east China to sell these cargoes at a rate of $565-570/tonne (€452/456/tonne) FOB (free on board), an increase of $30/tonne from August, a Singaporean trader said.

The price of the cargoes is estimated to be equivalent to $610/tonne CFR (cost & freight) China, according to the trader.

Cosmo Oil is Japan’s largest bitumen producer, with a capacity of 1.5m tonnes/year. It supplies most of its bitumen output to Japan’s domestic market, with the remaining small portion for export, traders said.

($1 = €0.80)

By: Alfa Li
020-3762 0271

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