24 July 2013 10:23 [Source: ICIS news]
SINGAPORE (ICIS)--South Korea’s SK Lubricants may supply Group II base oils to China on contract basis only in August as it is focusing on big users at the present stage, a company source said on Wednesday.
The company is expected to supply 1,000-2,000 tonnes of Group II base oils to China’s contract buyers next month, the source said.
SK Lubricants started up its 300,000 tonne/year Group II base oil plant at Ulsan on 25 June and has been targeting big lubricant producers worldwide for that material, said the source.
Spot Group II base oil supply in the Asian market is expected to tighten in August as Taiwan’s Formosa Petrochemical Corp (FPCC) plans to shut its 600,000 tonne/year Group II base oil plant at Mailiao in early August, major Chinese importers said.
As a result, spot prices are expected to continue rising in Asia as demand for high-viscosity Group II base oils will still be robust in August, the importers said.
Group II base oils were traded $970-1,110/tonne (€737-844/tonne) on an FOB (free on board) basis at major Asian ports on 19 July, up by $10/tonne at the high end of the range from a week ago, ICIS C1 Energy assessments showed.
($1 = €0.76)
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