07 February 2013 03:40 [Source: ICIS news]
SINGAPORE (ICIS)--Taiwan’s Formosa Petrochemical Corp (FPCC) is expected to halt Group II base oils supply to China’s spot market in March in view of falling production, a company source said on Thursday.
The company has been running its 600,000 tonne/year Group II base oils plant at Mailiao in Taiwan at a reduced rate of 88% capacity since early February, compared with full capacity before, as a result of lower margins than gasoil production, the source explained.
As of 7 February, the company has confirmed a total of 28,000 tonnes of contractual supply to China in March, and the supply on term basis is likely to increase further, thus squeezing spot supplies, the source added.
FPCC has supplied 35,000 tonnes of Group II base oils to China in February, including 20,000 tonnes of spot cargoes.
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