15 March 2013 05:32 [Source: ICIS news]
SINGAPORE (ICIS)--Taiwan’s Formosa Petrochemical Corp (FPCC) is expected to continue suspending spot supplies of Group II base oils to China in April in response to falling production, a company source said on Friday.
The company will continue to run its 600,000 tonne/year Group II base oils plant at Mailiao in Taiwan at 80% of capacity in April as margins in the production of gasoline are higher, the source explained.
FPCC is expected to supply about 30,000 tonnes of contractual cargoes to China in April, the source added.
Asian Group II producers are likely to increase their offers for April-delivered spot cargoes in view of tightening supplies due to intensive unit shutdowns and rebounding demand during the consumption peak in March-May, industry sources said.
FPCC supplied a total of 35,000 tonnes of Group II base oils to China on contractual basis in February.
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