China's Sinopec to increase Group I base oil supply by 67% in Feb

30 January 2012 06:41  [Source: ICIS news]

SINGAPORE (ICIS)--China’s top refiner Sinopec is planning to raise its Group I base oil supply to about 10,000 tonnes in February, up by 67% month on month, to meet increasing demand, a company source said on Monday.

The oil giant is expected to see stable base oil output in February as most of its underlying refineries will resume normal operation after the week-long Lunar New Year holiday in late January, the source said.

The company will also postpone the maintenance of its 470,000tonne/year Group I base oil plant at Maoming in Guangdong to late April, from the original schedule of early February, the source added.

China’s Group I base oil prices are expected to firm in February because of rebounding demand from downstream lube producers in preparation for consumption peaks in March-May, major Chinese traders said.

Prices of Group 1 base oils in the domestic market are expected to increase by around yuan CNY200-300/tonne ($32-47/tonne) in February from their current value at CNY9,500/tonne.

Sinopec’s January base oils supply is estimated at about 6,000 tonnes, according to the source.

($1 = CNY6.33)

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By: Whitney Shi
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