Taiwan's FPCC to raise base oil exports to China by 47% in May

24 April 2012 08:11  [Source: ICIS news]

SINGAPORE (ICIS)--Taiwan’s Formosa Petrochemical Corp (FPCC) plans to supply about 25,000 tonnes of Group II base oils to China in May, an increase of 47% from April, a company source said on Tuesday.

The supply will consist entirely of contractual cargoes, including 3,000-4,000 tonnes of delayed cargoes from April, but the volume of spot cargoes has not been finalised, the source added.

FPCC is considering raising offers for its May spot cargoes to China by $20-30/tonne ($15.2-22.8/tonne) in view of strong demand from India, southeast Asia, Europe and the US, the source said.

If Chinese importers refuse to accept the price, the company can sell the products to European and US markets, the source added.

FPCC plans to keep its supply of Group II base oils to the international market stable at about 60,000 tonnes in May and that will include 7,000-8,000 tonnes of spot cargoes, the source said.

($1 = €0.76)

By: Whitney Shi
+65 6780 4359

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