China’s Shandong Qisheng delays base oil unit restart to 20 Nov
08 November 2012 06:20 [Source: ICIS news]
SINGAPORE (ICIS)--?xml:namespace>China’s Shandong Qisheng Industry & Trade has delayed the restart schedule of its 70,000 tonne/year Group I base oil plant at Zibo in Shandong province to 20 November, a company source said on Thursday.
The restart was delayed from the original schedule of 10 November because of a persistent shortage of feedstock, the source explained.
The restart schedule may be further delayed to early December as China’s Group I base oil prices were on a downtrend from the beginning of November, the source added.
Group I base oils in China were traded at yuan (CNY) 8,300-8,650/tonne ($1,328-1,384/tonne) on 8 November, down by CNY200/tonne from a week before, traders said.
Gasoil prices have been lower than those of low-viscosity Group I base oils in China since the start of November, thus affecting the yield ratio of base oils, market sources said.
Most Chinese base oil producers preferred to shut their plants for maintenance in order to avoid high inventories and negative margins, the sources added.
Shandong Qisheng Industry & Trade mainly produces Group I SN40, SN60, SN150 and SN350 base oils.
($1 = CNY6.25)By: Whitney Shi+65 6780 4359
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