S. Korean refineries hike May CFR China prices by US$80-100/mt

Chemical News: S. Korean refineries hike May CFR China prices by US$80-100/mt

https://www.chemnet.com May 04,2011
South Korean refineries hiked May CFR China prices by US$80-100/mt in view of tight supplies in Asia, revealed company sources.

One of South Korea's Group II and Group III base oil leading suppliers, which was based in Onsan, boosted May CFR China prices of Group II base oils by US$80/mt, a source with the refiner revealed. Its output would decline after it put its 500,000mt/yr Group II base oil units into monthlong maintenance in early May, he explained.

Besides, it was mulling over a US$100/mt markup for Group III grades and would offer no discounts to China, he added.

Currently, specific prices had not been settled down as the company was negotiating with Chinese buyers for May supplies, he said.

Another South Korean Group II base oil key supplier which was based in Yeosu City also lifted May CFR China prices of its Group II base oils by US$100/mt, a company source told C1.

In addition, it would hardly have resources for the spot market because it had to reserve cargoes for long-term contracted buyers, he introduced.

If Chinese buyers were reluctant to accept such hefty prices, supplies in domestic spot market further dwindle, reckoned a Chinese market player.

South Korea refineries last boosted April CFR China prices of Group II and Group III base oils by US$100/mt.

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