China’s Dalian Petrochemical resumes base oil exports

20 December 2011 08:45  [Source: ICIS news]

SINGAPORE (ICIS)--China’s Dalian Petrochemical is planning to resume exports of base oil this month, given its high inventory and weak domestic demand, a company source said on Tuesday.

It plans to send 5,000 tonnes of Group I cargoes to Singapore, where prices are higher than what the cargo can fetch in China, the source said.

The company, which is a subsidiary of PetroChina, halted exports in October and November, partly because of poor demand from southeast Asia, said the source.

December is usually the off-peak season for base oil demand in China, market sources said.

Dalian Petrochemical can avoid cutting base oil prices in the domestic Chinese market if it can export more volumes, to ease the company’s inventory pressure, the company source said.

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By: Whitney Shi
+65 6780 4359

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