South Korean refineries planned to hike March base oil CFR China prices by US$50-70/mt, according to refinery sources. Currently they were negotiating with Chinese buyers on March exports, they revealed.
One of South Korea's Group II and Group III leading suppliers, which was based in Onsan City, would lift CFR China prices of Group II and Group III base oils by US$50-70/mt, revealed a company source.
Meanwhile, it would cut Group II exports to China by 20% on month, because it was building stocks before it put its Group II refinery into maintenance in the middle of the year, said he. As for Group III grades, the South Korean oil giant would keep supplies to China flat with February, he furthered.
South Korea's another Group II refiner, which was based in Yeosu City, would boost CFR China prices by US$70/mt, according to a company source. In the meantime, it would cut March spot supplies to China to 5,000mt, because it had to prioritize supplies to long-term contract buyers in view of currently low stocks, he explained.
Despite the price-hike, Chinese buyers showed keen enthusiasm in South Korean cargoes, according to a Chinese importer. This was because homemade Group II and Group III resources were scarce due to clustered refinery maintenance, he explained. On the other hand, demand would peak in March-May, the traditional high season of lubricant consumption, he furthered.
South Korean refineries last marked up CFR China prices by US$40-60/mt each month in January-February.
