China’s Shandong Qisheng delays base oils unit restart to Dec

16 November 2012 08:29  [Source: ICIS news]

SINGAPORE (ICIS)--China’s Shandong Qisheng Industry & Trade has delayed the restart of its 70,000 tonne/year Group I base oils plant at Zibo in Shandong province again to December, a company source said on Friday.

The company shut the plant on 10 October and had delayed the restart in view of continuously falling prices of Group I base oils in China in the past two weeks, the source said.

Group I base oils were traded at yuan (CNY) 8,050-8,800/tonne ($1,290-1,410/tonne) on 16 November in the Chinese market, down by CNY400-550/tonne from two weeks ago, traders said.

Most Chinese base oils producers were running their plants amid almost negative margins. Some of them chose to shut their plants, while others kept operating rates low, China-based traders said.

Prices are expected to continue fallling in November-December in China amid weak demand, the sources added.

Shandong Qisheng Industry & Trade mainly produces Group I SN40, SN60, SN150 and SN350 base oils.

($1 = CNY6.24)

By: Whitney Shi
+65 6780 4359

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