Taiwan’s FPCC to cut base oil term supply to China in November
18 October 2012 08:13 [Source: ICIS news]
SINGAPORE (ICIS)--?xml:namespace>Taiwan’s Formosa Petrochemical Corp (FPCC) plans to reduce its contract supply of Group II base oils to China by 50% month on month to around 10,000 tonnes in November, a company source said on Thursday.
Importers and lubricant producers based in China have been unwilling to purchase cargoes when approaching the year end, as they want to avoid overstocking, the source explained.
FPCC supplied a total of 20,000 tonnes of contract cargoes to China in October, without offering any spot material, the source said.
FPCC’s spot supply of base oils to China is estimated at around 1,000 tonnes in November, the source added.
The Taiwanese refiner is expected to offer its spot N500 cargoes for November delivery at a minimum of $1,060/tonne (€806/tonne) FOB (free on board), because of high production costs, the source said.
Production costs have risen in line with firming international crude prices, the source added.
($1 = €0.76)By: Whitney Shi+65 6780 4359
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