29 November 2012 06:41 [Source: ICIS news]
SINGAPORE (ICIS)--China’s Sinopec plans to reduce its Group I base oils production by about 9% month on month to 100,000 tonnes in December on the back of weak downstream demand, a company source said on Thursday.
The country’s biggest oil refiner will reduce the operating rates at its base oils plants to 70-80% capacity during December in view of soft downstream demand and high stock pressure, the source said.
Another major base oil producer, PetroChina, also plans to lower utilisation levels in December to avoid an oversupply in the Chinese market, industry sources said.
Sinopec produced a total of 110,000 tonnes of base oils in November, flat from a month ago.
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