Japan's Idemitsu Kosan Co Ltd would halt its base oil supplies to China in October, said a source with the company.
The company had been holding low stockpiles since mid August, when its base oil production was suspended for two weeks due to unit glitch, introduced the source. Although production had been resumed in early September, reservation was still low, so the company had to cut October exports, explained the source.
Moreover, in consideration of lower acceptability from China for the pricier cargoes, the company halted exports to China, he said. Earlier, as most Chinese importers could not afford high prices, the company had to transfer its July-September cargoes, which were planned to be delivered to China 2,000-3,000mt per month, to Southeast Asia, according to him.
The company source also said that it was still uncertain whether exports would be recovered in November, as supplies in the Japanese markets would be tight then amid the high season of lubricant consumption.
Idemitsu Kosan Co Ltd has a base oil production capacity of 400,000mt/yr. It mainly produces Group I, Group II and Group III base oils but releases only Group I grades to the spot market.
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The company had been holding low stockpiles since mid August, when its base oil production was suspended for two weeks due to unit glitch, introduced the source. Although production had been resumed in early September, reservation was still low, so the company had to cut October exports, explained the source.
Moreover, in consideration of lower acceptability from China for the pricier cargoes, the company halted exports to China, he said. Earlier, as most Chinese importers could not afford high prices, the company had to transfer its July-September cargoes, which were planned to be delivered to China 2,000-3,000mt per month, to Southeast Asia, according to him.
The company source also said that it was still uncertain whether exports would be recovered in November, as supplies in the Japanese markets would be tight then amid the high season of lubricant consumption.
Idemitsu Kosan Co Ltd has a base oil production capacity of 400,000mt/yr. It mainly produces Group I, Group II and Group III base oils but releases only Group I grades to the spot market.
China ChemNet will hold China SNG/CBM (International) Summit on 10-12 Nov, 2010 in Changji City of Xinjiang Province. This summit is the high-end international summit under the guidance of authorities and experts, conference topics include five major aspects of policy interpretation, industry research, business promotion, business meetings and Sino-foreign cooperation, is not only the new type coal chemical industry conference, but also the best opportunity to energy giant polymerization, government and enterprises investment, investors looking for the project. Sincerely welcome you to attend the summit. Details: http://news.chemnet.com/list/zt/meeting/2010energy/index.html
