China’s Qisheng Industry’s base oils unit to restart in mid-Aug

05 August 2014 09:23 Source:ICIS News

SINGAPORE (ICIS)--China’s Qisheng Industry & Trade has finalised the restart date of its 70,000 tonne/year Group II base oils unit at Zibo in Shandong at mid-August, a company source said on Monday.

The company has delayed the restart date from a previous schedule of early August on anticipation of oversupply.

The unit, which mainly produces N60, N100, N150 and N250 grades, was shut in early June for maintenance.

The company may encounter strong competition in Group II low-viscosity base oils in the near future because of a supply glut as new capacities have gradually come on line in Shandong, the source said.

However, it has an option to produce dearomatic solvent oils from the same unit as it is a base oil/solvent oil switching facility, according to the source.

Therefore, if base oils margins fall below that of solvent oils, it will choose to produce the latter, the source added.

By Whitney Shi