20 June 2013 08:34 [Source: ICIS news]
SINGAPORE (ICIS)--South Korea’s SK Lubricants may not supply spot Group II base oils to China in July as it will focus on contract buyers, a company source said on Thursday.
The company, which primarily produces Group III at present, will start exporting Group II cargoes from mid-July following the start-up of its 300,000 tonne/year Group II plant at Ulsan on 25 June, the source said.
However, almost all of the July Group II volumes will go to term clients, which are big lubricant producers, added the source.
Group II base oils supplies are expected to remain tight in Asia in July, industry sources said.
South Korea’s S-Oil plans to shut its 1.02m tonne/year Group II plant at Onsan for a one-month turnaround in early July, and Taiwan’s Formosa Petrochemical Corp (FPCC) will reduce commercial Group II supplies in preparation for maintenance in early August, added the sources.
SK Lubricants is capable of producing 1.35m tonnes/year of Group II and III base oils at its Ulsan plants.
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