Taiwan’s Formosa Petrochemical Corp 6505 is unlikely to offer 10 ppm sulphur gasoil for February loading in the spot market due to lower than expected inventories, spokesperson KY Lin said.

Lin attributed it to a longer than expected planned downtime for one of the 10 ppm sulphur gasoil production units at the end of December that reduced output.

“Furthermore, we have more contractual obligations to meet for 10 ppm sulphur gasoil than for the 500 ppm grade,” Lin said.

The shortfall from Formosa, one of the region’s largest refined products exporters, could be covered by exports from refiners in southeast Asia and China, a source at a northeast Asian refiner said.

Separately, Formosa has sold a 300,000-barrel 500 ppm sulphur gasoil cargo to a Western trader at a discount of around $5 a barrel to Singapore quotes, two sources close to the matter said.

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Source: Reuters