China's Sinopec base oils supply to drop by 17% in October

30 September 2013 07:03  [Source: ICIS news]

SINGAPORE (ICIS)--China’s largest oil refiner Sinopec plans to supply about 14,500 tonnes of Group I and II base oils to the domestic market in October, a decline of 17% month on month, a company source said on Monday.

The company plans to shut a 400,000 tonne/year Group I base oils plant at Maoming in Guangdong province in early October, and may not restart its Group I and II base oils units in Shanghai until mid-October, thus leading to decreased production, the source explained.

Most volumes will be produced by Sinopec Jingmen, Sinopec Ji’nan and Sinopec Henan Oilfield.

Sinopec Jingmen and Sinopec Henan Oilfield have Group I base oils capacities of 200,000 tonnes/year and 50,000 tonnes/year respectively, while Sinopec Ji’nan has a Group II  capacity of 150,000 tonnes/year.

Meanwhile, Sinopec is likely to continue increasing its prices for commercial supplies by around yuan (CNY) 100/tonne ($16.33/tonne) for October, the source added.

Sinopec sold about 17,500 tonnes of Group I and II base oils in September, up by 16.7% from a month ago.

($1 = CNY6.12)

By: Whitney Shi
+65 6780 4359

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