Russia’s Rosneft lowers base oil offers to China for May

14 May 2013 07:51  [Source: ICIS news]

SINGAPORE (ICIS)--Russia’s Rosneft has reduced its May offers of Group I base oil exports to China by $80-90/tonne (€61-69/tonne) from the previous month's prices, a Chinese importer said on Tuesday.

Prices dropped by $90/tonne to $900-910/tonne DAF (delivered at frontier) Erenhot for low-viscosity base oils and offers of high-viscosity grades were $80/tonne lower at $1,000-1,020/tonne DAF Erenhot, the importer added.

The decline in Rosneft’s May offers were a reflection of the bearish sentiment among Chinese importers, the importer explained, as Chinese domestic Group I supplies have been rising in May.

China’s Group I base oil prices are expected to continue falling during the low consumption season of June-August, traders said.

Group I base oils in north and northeast China were traded at yuan (CNY) 8,700-9,300/tonne on 14 May, down by CNY100/tonne from a week before, the traders added.

Rosneft will export 8,050 tonnes of Group I base oils, which comprise 3,940 tonnes of low-viscosity grades and 4,110 tonnes of high-viscosity grades, to China in May,.

All the volumes for export are produced by Rosneft’s 250,000 tonne/year Group I base oil plant at Angarsk in Russia.

($1 = €0.77)

By: Whitney Shi
+65 6780 4359

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