11 December 2012 06:34 [Source: ICIS news]
SINGAPORE (ICIS)--China’s Sinopec Jingmen Petrochemical plans to shut its 250,000 tonne/year Group I and 100,000 tonne/year Group II base oil plants at Jingmen in Hubei province in late December, a company source said on Tuesday.
The company will suspend its base oil production during the one-month routine turnaround, the source said, adding that it will continue supplying contractual customers with existing stocks.
Prices of base oils in China are expected to stabilise in December as a result of falling domestic supply, but downstream demand remains weak, major traders in China said.
Some Chinese base oils producers have chosen to lower their plants’ operating rates or halt production in view of weak demand and high inventory levels, the traders added.
Group I base oils were traded at yuan (CNY) 8,250-8,800/tonne ($1,324-1,413/tonne) on 11 December in China, flat from the previous week. Prices of Group II grades dropped by CNY50-100/tonne from a week ago to CNY8,800-9,800/tonne, according to the traders.
Sinopec Jingmen largely produces Group I 32# and 100# base oils as well as Group II 10# grades. These grades are commonly known in the market as Group I SN150, SN500 and Group II N500.
($1 = CNY6.23)
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