20 March 2012 07:20 [Source: ICIS news]
SINGAPORE (ICIS)--Taiwan-based CPC-Shell Lubricant has halted its spot supply of Group I base oils to ?xml:namespace>
The decision was made, as higher international crude prices increased production costs and reduced profit margins from Group I base oils for CPC-Shell, the source added.
The source added that demand for Group I base oils in
CPC-Shell Lubricant had increased the price of its Group I base oils by $10-20/tonne (€7.60-15.20/tonne) because of rising production costs in February, the source said.
It increased its spot supply of SN150, SN250 and BS150 Group I base oils to
If it remains unable to raise its earnings from the exports of Group I base oils, CPC-Shell may consider reducing the operating rate at its Group I base oil plant and switch to producing treated distillate aromatic extract which would yield better profit margins, the source added.
The Group I base oil plant is located at
The company did not provide further details about its base oils supply for April.
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