11 September 2012 08:00 [Source: ICIS news]
SINGAPORE (ICIS)--China’s Shandong Qisheng Industry & Trade plans to restart its 70,000 tonne/year Group I base oils plant at Zibo in Shandong province in late September, a company source said on Tuesday.
The producer shut the plant on 1 September for a one-month turnaround, the source said.
Shandong Qisheng will not be supplying any Group I base oils during the shutdown period as it has no stocks, the source added.
Meanwhile, Group I base oil supplier Sinopec Jinan shut its 100,000 tonne/year Group I base oils plant in late January for an expansion and expects to resume supply in late September, the sources added.
As a result, the producers kept their list prices of on-spec Group I SN150 and SN350 firm at yuan (CNY) 8,900/tonne ($1,404/tonne) on 11 September in Shandong, unchanged from their offers the previous week, according to traders.
No deals were concluded in the local market, the traders added.
Nonetheless, the prices of on-spec Group I base oils in Shandong province, east China, are expected to firm in the next few weeks because of the suspension of supply from the two sole suppliers in the region, market sources said.
Shandong Qisheng Industry & Trade largely produces Group I SN40, SN60, SN150, SN250 and SN350.
($1 = CNY6.34)
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