Malaysia's Petronas set to suspend base oil supplies to China in May, because its base oil output dropped below normal levels after it shut a 330,000mt/yr Group III base oil unit for maintenance lasting from end April to May 10, according to a company source.
As for June supplies to China, the Malaysian oil giant will send cargoes to long-term contracted buyers only, he furthered. The spot market is unlikely to expect any resources then, he added.
With shorter supplies from Malaysia, China's Group III base oil supplies will tighten further, an industry source opined. So Group III prices will keep firm in the near term, he believed.
Petronas, with a 330,000mt/yr base oil production capacity, mainly yields Group III grades. It normally supplies 4,000-5,000mt/month of base oils to China.
