Russia’s Rosneft cuts November Group I base oils offers to China

02 November 2012 08:40  [Source: ICIS news]

SINGAPORE (ICIS)--Russia’s Rosneft has reduced its offers for Group I base oils to China by $10.00-30.00/tonne (€7.70-23.10/tonne) month on month for November delivery, a Chinese importer said on Friday.

The decline could be attributed to falling domestic demand in Russia and rising supply to China, according to the importer.

Prices of low-viscosity base oils dropped by $10-20/tonne from a month ago to $950-960/tonne on a DAF (delivered at frontier) Erenhot basis for November, and prices for high-viscosity volumes went down by $10-30/tonne to $1,020-1,030/tonne, the importer added.

Group I base oils prices are expected to continue on the weak trend this month as a result of lower import offers and soft downstream demand from lubricant plants in China, said most Chinese traders.

Group I grades were traded at yuan (CNY) 8,250-9,200/tonne ($1,322-1,474/tonne) on 2 November in the Chinese market, down by CNY200-400/tonne from the previous week, traders said.

Rosneft supplied 3,410 tonnes of Group I base oils to China in October, with low-viscosity grades traded at $970-980/tonne DAF Erenhot and high-viscosity grades at $1,030-1,060/tonne.

($1 = €0.77 / $1 = CNY6.24)

By: Whitney Shi
+65 6780 4359

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