05 March 2013 07:53 [Source: ICIS news]
SINGAPORE (ICIS)--China’s largest oil refiner Sinopec plans to double its base oils supply to the domestic market to about 10,000 tonnes in March, a company source said on Tuesday.
About 3,500 tonnes will be produced by Sinopec Henan Oilfield and 4,500 tonnes will be supplied by Sinopec Jingmen. These subsidiaries have Group I base oils capacities of 50,000 tonnes/year and 200,000 tonnes/year respectively.
Meanwhile, about 2,000 tonnes of Group II grades will be supplied by its 150,000 tonne/year base oil plant at Jinan, the source said.
China’s base oils supply is expected to fall short during the consumption peak of March-May, although Sinopec will increase its commercial supply, the source said.
Therefore, the company is likely to raise its Group I and II base oils prices by yuan (CNY) 100-300/tonne ($16-48/tonne), added the source.
Sinopec sold about 5,000 tonnes of Group I to the domestic market in February.
($1 = CNY6.22)
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