29 January 2013 09:10 [Source: ICIS news]
SINGAPORE (ICIS)--Taiwan’s Formosa Petrochemical Corp (FPCC) plans to export about 35,000 tonnes of Group II base oils to China in February, 22% lower than January volumes, a company source said on Tuesday.
Of the total estimated February shipments, about 57% or 20,000 tonnes will be spot cargoes, the source said.
This translates to an 11% increase in spot cargoes from January, the source said.
Spot cargoes for February delivery from Taiwan were mostly traded at the same levels as in January at $940-1,030/tonne (€696-762/tonne) FOB (free on board) Taiwan, while N150 prices declined by $10-20/tonne, the FPCC source said.
China’s imports of Taiwanese base oils are tariff-free, while a 6% tariff is levied on competing South Korean material, market sources said.
“[The] overall cost of South Korean base oils will be higher,” said a market source.
China bought 45,000 tonnes of Group II base oils from Taiwan in January, including 18,000 tonnes of spot cargoes.
($1 = €0.74)
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