China to receive uncommon US Team II base oils in Q4 2020

Posted by Buchanan Norris on January 14th, 2021

China would expect uncommon Team II base oils from United States in the 4th quarter of this year as a result of high costs, because United States's Chevron Corporation started to ration Group II supply from October on.

Chevron was weighing to start maintenance of its Group II base oil manufacturing system in its California-based refinery in the near term, an American investor said. It had previously prepared for routine maintenance initially of next year. The plan was put ahead of schedule due to unit glitch, he said. Currently molecular sieve 4a had begun to ration base oil sales, cutting 100N and also 200N materials by fifty percent, he said.

Demand for Group II base oils in the American market had actually not been overfilled now although Chevron and Motiva resumed regular supplies in early August from its providing rationing during May-July, the high intake period of lubricants, stated an American online marketer. The supply rationing in this month, would further tighten supplies in United States, hence Team II costs there would climb in the near run.

Group II base oil products were restricted in the Chinese market as well without replenishment from US.

Supply had actually currently been strained as Sinopec's Gaoqiao Petrochemical halted place products since mid September. The tension aggravated as materials from Taiwan's Formosa Petrochemical Co remained unsure and also European base oil producers reduced exports to China on hefty maintenance, as reported earlier.

Chevron's California-based refinery, with a Team II base oil manufacturing capability of 1-mil-mt/yr (equal to 20,000 barrel/d), is just one of the vital Team II suppliers in US.

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Buchanan Norris

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Buchanan Norris
Joined: January 14th, 2021
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