C1 (Shanghai)--03/09/2010----South Korea's GS Caltex Corp will reduce base oils exports to China in March to ensure demand from its lubricants plants, a source with the company said, giving no more details.
GS Caltex would cut the export volume for China by at least 10% in March, a trader pointed out, considering the company's current base oils shipments.
The source with GS Caltex denied a rumor in an interview with C1 that the company is maintaining its base oil plants. The source pointed out the plant is under normal operation and has no maintenance plan in the near term.
The company supplies less base oil to China in March as lubricants production has entered midseason in South Korea, the source explained. Higher profit for exports to other Southeast Asian countries is another reason for cuts in China-bound cargoes, he said.
In addition, Group II base oils exports from South Korea-based supplier, S-Oil refinery are also said to drop in March due to ongoing refinery turnaround. However, prices of the resource are not expected to surge in China thanks to sufficient supply from Taiwan's Formosa.
