05 March 2013 07:10 [Source: ICIS news]
SINGAPORE (ICIS)--China’s Dalian Petrochemical plans to shut its 450,000 tonne/year Group I base oils plant at Dalian in Liaoning province, northeast China, in the middle of March for maintenance, a company source said on Tuesday.
The turnaround will be conducted simultaneously with a 4.5m tonne/year crude distillation unit (CDU) at the same site and is expected to last one month, according to the source.
The CDU provides feedstock for the base oil facility.
Dalian Petrochemical’s Group I SN150 base oils supply has dropped since December 2012 when the company shut one of the two production lines of around 200,000 tonnes/year due to poor margins, major traders in northeast China said.
Group I base oils prices are expected to firm at high levels in northeast China in March as local supplies will tighten further following the shutdown, the traders said.
Group I base oils were traded yuan (CNY) 8,500-9,200/tonne ($1,367-1,479/tonne) in north and northeast China on 5 March, up by CNY100-175/tonne from a week ago, according to the traders.
Dalian Petrochemical, a PetroChina subsidiary, mainly produces Group I SN150, SN400 and SN650 grades.
($1 = CNY6.22)
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