18 December 2012 07:22 [Source: ICIS news]
SINGAPORE (ICIS)--China’s Dalian Petrochemical plans to reduce the production capacity of its 450,000 tonne/year Group I base oil plant in Liaoning province in late December, a company source said on Tuesday.
The base oil plant has two lines, one of which will be taken off line on the weekend of 22-23 December, as the producer has already fulfilled its annual production target, the source said.
Dalian Petrochemical also prefers to switch to producing gasoil when possible, as the margins are higher, the source added.
The restart schedule for the production line has not been decided, the source said.
China’s Group I base oil prices are likely to remain stable in late December, because demand from domestic lubricant producers is weak nearing the year end, major traders based in northeast China said.
Group I base oils were traded at yuan (CNY) 8,250-8,800/tonne ($1,322-1,410/tonne) on 18 December in northeast China, flat from a day ago, the traders added.
Dalian Petrochemical produces largely Group I SN150, SN400 and SN650 base oils.
($1 = CNY6.24)
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