15 October 2013 08:16 [Source: ICIS news]
SINGAPORE (ICIS)--China’s Hainan Handi Sunshine Petrochemical has delayed Group II base oils production at its 300,000 tonne/year plant in Hainan province to early November from mid-October, a company source said on Tuesday.
The company shut the unit on 5 July for maintenance and restarted it in early October, the source said.
However, base oils production is not ready yet because of a lack of feedstock supply from Hainan Petrochemical, the source explained.
The company was not in a hurry to resume production in view of rising supply in Asia and soft demand in China, industry sources said.
Supply of Group II base oils is on an uptrend in the Asian market in October after Taiwan’s Formosa Petrochemical restarted its 600,000 Group II unit earlier this month, the sources said.
Meanwhile, Group II base oils prices started to decline in China after the National Day holiday on 1-7 October amid sluggish demand, added the sources.
Hainan Handi Sunshine Petrochemical mainly produces Group II N70, N150 and N400 base oils.
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