02 April 2013 07:24 [Source: ICIS news]
SINGAPORE (ICIS)--China’s largest oil refiner Sinopec plans to increase its base oil supply to the domestic market by 50% to about 15,000 tonnes in April as part of its destocking activity, a company source said on Tuesday.
The majority of the supply will be produced by Sinopec Jingmen and Sinopec Henan Oilfield, which have Group I base oil capacities of 200,000 tonnes/year and 50,000 tonnes/year respectively, the source added.
There will not be any Group II base oils available from Sinopec’s 150,000 tonne/year base oil plant at Jinan in Shandong because of the unit’s maintenance, the source added.
Sinopec is likely to keep its base oil prices unchanged in April as demand from lubricant plants in China is weakening, despite a recent rebound in international crude prices, the source said.
Group I base oils were traded at yuan (CNY) 8,700-9,250/tonne ($1,403-1,492/tonne) in China’s north and northeast regions on 2 April, unchanged from a week ago, traders said.
Sinopec sold around 10,000 tonnes of Group I and II base oils to the domestic market in March, compared with 5,000 tonnes in February.
($1 = CNY6.20)
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