Taiwan's Shell CPC to release null base oils to spot market in May

Chemical News: Taiwan's Shell CPC to release null base oils to spot market in May

https://www.chemnet.com May 04,2011
Taiwan's Shell CPC would release null base oils to the spot market in May, because it would have to prioritize supplies to its long-term contracted buyers and to its parent companies—Shell and CPC, revealed a company source.

The company had been running its base oil facilities at a 90% utilization rate since late March because of feedstock shortage, he said. It did not resume full operation until late April, so current stocks were at low level, he said.

On the other hand, most long-term contracted buyers beefed up ordering cargoes from Shell CPC because they could hardly seek premium Group I resources in other Asian refineries. Under these circumstances, no spot cargoes would be available for May, he concluded.

Due to limited supplies in Asia, CFR China prices of Group I base oils kept mounting up in April, he said. This in turn would spur up domestic prices in May, estimated a domestic market player.

Prices were likely to hit the historic-high level of 2008, he predicted.
Shell CPC had no base oils for the spot market in April.

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