China is unlikely to receive spot base oils from three Asian base oil giants--ExxonMobil, Shell and Taiwan's Shell CPC--in June, revealed company sources.
ExxonMobil’s Singapore Refinery shut its 1.2-mil-mt/yr Group II base oil unit for maintenance during mid or late March and mid May, so its Group II base oil output dwindled, revealed a refinery source. Furthermore, Chinese importers showed little interests in importing in view of sliding prices at home, so the refinery's Group I and Group II resources will hardly flow into China in June, he said.
Meanwhile, Shell Singapore planned no spot cargoes for China in June, a company source revealed. It will reserve most cargoes in Singapore and supply 10,000mt of Group I base oils to China' long-term contracted buyers, he introduced.
In addition, Shell CPC will release 10,000mt of cargoes to Mainland China’s long-term contracted clients but no spot supplies to Mainland, a source from the Taiwanese base oil major said.
In view of ever-declining prices in Mainland, the company will send an extra volume of 1,000mt to Mainland China's term buyers rather than to the spot market, he furthered.
Even with no inflows from Asia, China's Group I base oil prices still lacked upward supports, a domestic market play deemed, citing ampler supplies of homemade supplies and sluggish demand at home.
