SINGAPORE (ICIS)--Russia’s Rosneft plans to supply 11,600 tonnes of Group I base oils to China in February, up by 16% month on month, a Chinese importer said on Thursday.
The cargoes will consist of 7,000 tonnes of low-viscosity base oils and 4,600 tonnes of high-viscosity grades, the importer said.
Prices of the high-viscosity cargoes may decline further for February as demand in China remains soft, the importer said.
Moreover, lubricant producers are less willing to purchase high-viscosity Group I base oils as the price gap between low-viscosity Group II base oils and high-viscosity Group I grades continues to narrow, added the importer.
All the cargoes will be produced by Rosneft’s 250,000 tonne/year Group I base oils plant at Angarsk in Russia.
Rosneft exported a total of 10,000 tonnes of Group I base oils to China in January. 3,000 tonnes of high-viscosity cargoes were traded $1,000/tonne DAF (delivered at frontier) Erenhot, $60/tonne lower than a month ago.