C1 Methodology and Specifications Guide --- Solvent Oil

Solvent Oil

Solvent oil has close relations to people’s life. It is widely used in production of edible oil, printing ink, leather, pesticide, insecticide, rubber, cosmetic, flavor, chemical polymerization, medicine and cleanout of IC electronic components. Solvent oil No. 6 for vegetable oil extraction, solvent oil No. 120 for rubber extraction and solvent oil No. 200 for producing dope are three major types of solvent oil, consumption of which are higher than other types.

Most solvent oil is mixture of different types of hydrocarbon, which could be found in gasoline, kerosene and gasoil components. However, for a single type, it has narrower distillation range than oil products. Raw materials for solvent oil production in China mainly include catalytic reforming raffinate oil, oilfield stable light hydrocarbons and straight-run gasoline. Production of typical solvent oil could be divided into two processes, viz. distillation separation and finish refining. In a distillation separation process, straight-run light oil is separated into the grades with narrow distillation range, or catalytic reforming raffinate oil is re-distillated. For finishing refining, alkaline washing clay finishing and hydro-refining are three main methods. In addition, ordinary solvent oil could be produced via molecular sieve dewaxing technique.

Product Specifications

Specifications	Category	Aromatics %	Range℃	Color（Saybolt）
6#	Solvent oils for vegetable oil extraction	≤1	60-90	25
120#	Solvent oils for rubber extraction	≤3	90-120	25
200#	Solvent oils for paint and dope production	≤22	140-200	25

C1 solvent oil reports cover daily intelligence on China’s solvent oil markets and price assessments.

Editorial Group:
Shi Hanlei   nancyshi@c1energy.biz
Ma Yiqin   vivienma@ c1energy.biz

Publishing Period
Daily, each working day (Saturdays and Sundays excluded)

Daily Price Assessments on China’s Solvent Oil Market

East China ex-tank price for 6# solvent oil (Yuan/mt)
South China ex-tank price for 6# solvent oil (Yuan/mt)
East China ex-tank price for 120# solvent oil (Yuan/mt)
South China ex-tank price for 120# solvent oil (Yuan/mt)
Shandong ex-tank price for 200# solvent oil (Yuan/mt)
East China ex-tank price for 200# solvent oil (Yuan/mt)

Assessment Principles

Timing:
C1 price assessments reflect the most possible tradable range on solvent oil in line with C1 standard specifications for most sellers and buyers in the spot markets up to 16:30 Beijing time on the date of publication. C1 tracks the markets continuously and assessments are based on the information provided by market players including sellers, buyers, and/or credible third parties before the close of the trading day (16:30 Beijing time).

Product Specifications:
C1 assesses three grades of solvent oil. Specifications for 6# solvent oil are typically defined in GB16629-2008 standards. Specifications for 120# solvent oil are typically defined in SH0004-1990 (1998) standards. Specifications for 200# solvent oil are typically defined in GB1992-2006 standards.

Delivery time:
Assessments on China markets typically reflect parcels loading within 5 days out from the date of publication.

Payment term: prompt payment for China markets

Trading volume: 50-200mt per lot for China markets

Delivery points:
South China ex-tank price: include, but are not limited to ex-tank truck prices in Guangzhou, Zhuhai, Dongguan, Shenzhen, Maoming, Quanzhou, Xiamen
East China ex-tank price: include, but are not limited to ex-tank truck prices in Shanghai, Nanjing, Jiaxing, Suzhou, Changzhou, Ningbo, Hangzhou
Shandong ex-tank price: include, but are not limited to ex-tank truck prices in Dongying, Heze, Ji’nan, Qingdao, Binzhou, Liaocheng, Weifang.

General principles:

C1’s assessments primarily reflect the traded value of the market during the assessment period when there is deal done. When there is no deal, the price assessments reflect the most possible transactable value of the market, based on a wide variety of information, including bids, offers, market fundamentals and sentiment (supply/demand, feedstocks and downstream markets, related markets, etc).

C1’s assessments are based on the traded or negotiated prices for solvent oils in line with C1’s standard specifications in the spot market. C1 has the right not to consider deals or negotiations on solvent oils with non-standard specifications. C1 will not consider deals involved in its information sources of assessments, if the deal or negotiation is between contracted or affiliated enterprises.

 

Taxes

Solvent Oils for Rubber, Paint, & Extracting Solvent Oils --- Tax code (27101130)
Year	Most-Favored-Nation Import Tariffs	Import Tariffs	Export Tariffs
2009	6%	30%	0％

Value-added Tax: 17%; no tax rebates

 

Updated on Mar 13, 2009