07 December 2012 08:13 [Source: ICIS news]
SINGAPORE (ICIS)--Russia’s Rosneft has reduced its offers for Group I base oils to China by $50-100/tonne (€39-77/tonne) month on month for December cargoes, a Chinese importer said on Friday.
Chinese importers lowered their bids in view of extremely weak demand for Russia-origin products and falling prices in the domestic market in November, thus pressuring December offers, the importer explained.
Prices of low-viscosity base oils dropped by $80-90/tonne from a month ago to $870/tonne on a DAF (delivered at frontier) Erenhot basis for December, and prices for high-viscosity volumes went down by $50-100/tonne to $920-980/tonne, the importer added.
Rosneft also reduced its December exports to China to 6,800 tonnes, from 8,800 tonnes as originally planned, so as to mitigate risks in view of dropping offers, according to the importer.
The price cut is not surprising as prices of Russian Group I base oils have declined significantly in China, the source went on to add.
However, prices of Russia-origin Group I base oils are expected to stabilise in December as demand was still flat, market sources said.
Imported Group I base oils from Russia were traded yuan (CNY) 8,200/tonne in the Chinese market, stable from a week before, the sources added.
Rosneft supplied 6960 tonnes of Group I base oils to China in November, with low-viscosity grades traded at $950-960/tonne DAF Erenhot and high-viscosity grades at $1,020-1,030/tonne.
($1 = €0.77)
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