C1 (Shanghai)--03/09/2010----Luk Refinery in Russia is expected to supply China with 11,000mt of base oils in March, sharply up 29.4% from the previous month, a Chinese trader said.
The planned cargoes, including 150SN, 350SN, 500SN and 650SN grades, are settled at a CFR China coast price of about US$790-820/mt, according to the trader.
The increased volumes could not nearly bridge the wide supply gap in domestic market, the trader pointed out. Currently, Group I base oils are in brisk sales in China, after persistent sales control from Sinopec and PetroChina.
Major traders continued suspending supply of Russian base oils early this week, but would resume sales in the short term, industry sources reckoned. That is because domestic offers for Russian base oils have reached high levels and supplies of the resource would build after cargoes from Angarsk and Luk refineries arrive next week, the sources explained.
Luk Refinery exported 8,500mt of base oils to China in February, including 150SN, 500SN and 650SN materials.
