PetroChina halts Group II base oil supply in northeast China

13 November 2012 07:38  [Source: ICIS news]

SINGAPORE (ICIS)--PetroChina has suspended Group II base oil supply in northeast China since the company shut its 200,000 tonne/year base oil unit at Daqing in Heilongjiang on 10 November, a company source said on Tuesday.

The company shut the plant because of an unit glitch, the source explained, adding that the exact schedule for restart is not known.

The supply halt is expected to support the offer for Group II N60/70 at high prices in the local market, major traders in northeast China said.

However, prices of N150 grades dropped by yuan (CNY) 200/tonne ($32/tonne) to CNY9,000/tonne in northeast China for the week ended 13 November, compared with a week ago, as a result of ample stocks and lower-priced products from surrounding markets, the traders added.

PetroChina, the sole Group II base oil producer in northeast China, largely produces N60/70 and N150 grades in Daqing city.

($1 = CNY6.23)

By: Whitney Shi
+65 6780 4359

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