China’s Sinopec to maintain base oils supply in January

08 January 2013 08:41  [Source: ICIS news]

SINGAPORE (ICIS)--China’s largest oil refiner Sinopec plans to supply about 10,000 tonnes of Group I and II base oils to the domestic market in January, flat from a month ago, a company source said on Tuesday.

Most of the Group I supply will be produced by its subsidiaries, Sinopec Henan Oilfield and Sinopec Beijing Yanshan, the source said. These subsidiaries have Group I base oils plant capacities of 50,000 tonnes/year and 260,000 tonnes/year respectively.

Group II grades will mainly be supplied by its 150,000 tonne/year plant at Jinan in Shandong province, the source added.

The company has halted Group I base oils supply from its 250,000 tonne/year Jingmen plant since 17 December 2012, but increased Group II supplies from its Jinan plant in January, the source said.

China’s Group I base oils prices are expected to firm through January as PetroChina has already tightened domestic supplies and supply of imported volumes also dropped, industry sources said.

Group I base oils in China were traded at yuan (CNY) 8,500-8,950/tonne ($1,364-1,437/tonne) on 8 January, CNY250/tonne higher than a week ago, domestic traders said.

($1 = CNY6.23)

By: Vivien Ma

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