PetroChina cuts discounts for bitumen on strong demand, high costs

05 February 2013 07:06  [Source: ICIS news]

SINGAPORE (ICIS)--China’s biggest bitumen producer PetroChina has cancelled the discounts for bulk orders of below 5,000 tonnes/month in view of firmer feedstock costs and strong demand, traders said on Tuesday.

Previously, buyers could enjoy a discount of yuan (CNY) 50/tonne ($8/tonne) for monthly orders of between 3,000 tonnes and 5,000 tonnes, they said.

However, it has retained a CNY80/tonne discount for deals of over 5,000 tonnes/month and a CNY100/tonne discount for deals of over 8,000 tonnes/month.

These apply to bitumen from four of its subsidiary refiners: PetroChina Xingneng Refinery, Alpha (Jiangyin) Bitumen, Wenzhou PetroChina Fuel Chemical and PetroChina Gaofu Petroleum, the traders said.

Many buyers choose to combine their volumes to continue enjoy the discounts, most traders from south China and the Yangtze River Delta said.

Other oil giants in China Sinopec and China National Offshore Oil Corp (CNOOC) also tightened up their discounts, according to the traders.

Prices may keep going up after the Chinese Lunar New Year holiday on 9-15 February because demand is expected to stay strong while oil giants’ inventories had dropped to low levels, market sources said.

($1 = CNY6.24)

By: Alfa Li
020-3762 0271

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