China’s Sinopec to supply 6,000t spot Group I base oils in Jan

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.

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By: Whitney Shi
+65 6780 4359

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