11 June 2012 08:44 [Source: ICIS news]
SINGAPORE (ICIS)--China’s largest refiner, Sinopec, plans to keep its supply of Group I base oils unchanged at about 10,000 tonnes in June because of weakening downstream demand, a company source said on Monday.
Most of the supply will be produced by its subsidiaries – Jingmen Petrochemical, Nanyang Petrochemical and Yanshan Petrochemical – which have base oil capacities of 250,000 tonnes/year, 50,000 tonnes/year and 260,000 tonnes/year respectively, the source added.
Sinopec cut base oil prices by yuan (CNY) 250–500/tonne ($39–78/tonne) in early June to avoid piling stocks, market sources said.
Chinese base oil prices are expected to drop further throughout the month amid strong bearish market sentiment, the sources added.
($1 = CNY6.37)
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