12 December 2012 10:23 [Source: ICIS news]
SINGAPORE (ICIS)--Sinopec Jinan has started supplying the domestic market with Group II base oils from its newly expanded 150,000 tonne/year plant at Jinan in Shandong province in December, a company source said on Wednesday.
The base oil plant is expected to supply around 4,000 tonnes of Group II N150 and N500 base oils for December delivery, the source added.
The cargoes will be largely distributed to Shandong and north China, the source added.
The Chinese refiner has offered its Group II N150 base oils at yuan (CNY) 8,700/tonne ($1,392/tonne) and its N500 product at CNY9,300/tonne, the source said.
Group II N150 base oils in northeast and north China were traded at CNY8,850-9,750/tonne on 12 December, down by CNY150/tonne week on week, according to the price assessments by C1 Energy, an ICIS service in China.
The prices of N500 remained flat at above CNY10,000/tonne, C1 Energy data showed.
The plant is also capable of producing hydro-treated BS150 base oils, but this grade is not ready for commercial supply, the source said.
Sinopec started upgrading plans for its Jinan base oil plant in Jinan since January and restarted the unit in November.
However, the plant’s on-spec production was delayed as a result of weak demand in China.
($1 = CNY6.25)
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