23 December 2011 06:28 [Source: ICIS news]
SINGAPORE (ICIS)--Chinese major Sinopec is planning to supply 6,000 tonnes of Group I base oils to the spot market in January, a company source said on Thursday.
The planned volume is more than double the 2,500 tonnes of Group I base oils Sinopec supplied in December, but lower than its monthly average of 10,000 tonnes.
The producer is reducing its supply to the spot market as it is stocking up on base oils in preparation for the peak oil change season in March-May next year and some of its subsidiary refineries are scheduled for maintenance, according to the company source.
The reduced supply from Sinopec is not expected to have an impact on domestic Group I base oil prices, as China is set to receive above 10,000 tonnes of Russian cargoes in January, said a market source.
In addition, downstream demand is likely to be weak because of the Lunar New Year holiday on 22-28 January, said a market source.
Market supply and demand fundamentals will thus be balanced, added the market source.
Please visit the complete ICIS plants and projects database
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections