China's Sinopec Shanghai Gaoqiao hikes Sept base oils export offer

10 September 2013 09:22  [Source: ICIS news]

SINGAPORE (ICIS)--Sinopec Shanghai Gaoqiao has increased its September export offer for Group II N150 base oils by $30/tonne from August, to reflect higher domestic prices quoted by its parent firm in China, a company source said on Tuesday.

The company, which is a subsidiary of China’s largest refiner Sinopec, is now offering Group II N150 base oils for September delivery at $1,000/tonne (€750/tonne) FOB (free on board) China, the source said.

Sinopec has raised its Group II base oils domestic prices by yuan (CNY) 200/tonne ($33/tonne), the source said.

Shanghai Gaoqiao is offering about 1,500 tonnes of Group II N150  for export in September, the source said.

However, actual export transaction may be difficult to come by as demand for low-viscosity Group II grades has remained weak in the Asian market, the source said.

Sinopec Shanghai Gaoqiao has a nameplate capacity of 400,000 tonnes/year for Group I base oils, and 300,000 tonnes/year for Group II grades.

The company offered 2,000 tonnes of low-viscosity Group I and II base oils for export at $950-970/tonne FOB China in August, but no deals were settled.

($1 = €0.75 / $1 = CNY6.12)

By: Whitney Shi
+65 6780 4359

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