27 August 2013 08:19 [Source: ICIS news]
SINGAPORE (ICIS)--South Korea’s S-Oil has signed contracts with eight Chinese importers to supply them with term bitumen cargoes for the rest of 2013, starting from August, market sources said on Tuesday.
A source from the South Korean petroleum and refinery company’s Shanghai-based office confirmed this, but declined to reveal the contract prices and names of the buyers.
S-Oil has chosen to sell bitumen to long-term buyers in China, as it will raise its monthly supply to China to 80,000 tonnes from 30,000-40,000 tonnes previously from October, following a recent capacity expansion, a Chinese importer said.
Among the eight term buyers, one was said to be based in Guangdong province in south China, while one was heard to be in north China. According to market sources, one buyer is in east China’s Zhejiang province, while three are in Jiangsu province and the remaining two are in Shandong province.
Most of the term buyers are major bitumen importers in China, one Chinese trader said, adding that four of which are S-Oil’s existing clients and the rest are new customers.
The term contracts were understood to be concluded at $590-595/tonne (€442-446/tonne) CFR (cost & freight) east China with the new clients, while existing customers were given discounts, according to the trader.
S-Oil has a crude refining capacity of 580,000 bbl/day and it is the second largest bitumen producer in South Korea.
($1 = €0.75)
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