05 July 2012 08:42 [Source: ICIS news]
SINGAPORE (ICIS)--China’s biggest oil refiner Sinopec is planning to reduce its Group I and II base oils production by about 20% month on month to 70,000-80,000 tonnes in July, a company source said on Thursday.
The decline is a reflection of the weak downstream demand from lubricant producers in China during the traditional low consumption season, the source explained.
The Chinese base oils market is in oversupply and most producers are facing the pressure of high inventory levels, major market players in China said.
Therefore, the majority of producers are running their plants at low operating rates and some have even halted production for maintenance, the sources added.
Sinopec produced about 90,000 tonnes of Group I and II base oils in June.
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