Base oil
In India, Base oil is majorly imported at Bombay port. The other ports where Base oil is imported are Calcutta, Ennore and Madras ports.
For daily price, we follow the same procedure as mentioned above in the Daily pricing methodology.
For international prices our team regularly communicates with key participants in order to gain information about the international market
Here we ask the key participants to bid their prices. We make sure that all the entities submit the relevant documents to make the price assessment more relevant and appropriate.
By Friday noon the bidding window is closed. As mentioned earlier, along with the prices the participants submit the key documents in order to support their prices.
Our team analyse these prices on several factors. Here market dimensions are studied well. Company rationale, traders documents, current market scenario, last week’s assessed prices, order sizes, quantity details, traded quantity, ordered quantity, delivery information are some of the key factors taken into consideration.
Since Base oil is produced from propylene, the prices of propylene are watched closely to see any price fluctuation. Even Crude Oil prices are included for any fluctuation as these are one of the key factors contributing to the price assessment.
Later a comparative analysis is carried out for all the prices. In the end, the price which is more suitable and prompt is decided. Inference of this analysis is published in our market report as international price.
This assessed information is then published in our weekly report.
For CFR India, cost and freight is included. For FOB the prices does not include the shipping charges.
FOB (Freight on Board) prices is generally taken or the material being imported from Korea.
