There has been consistent hike in group II Base Oils in China market on back of limited supply in the Asian market. There has been acute short availability of Base Oils mostly due to prolonged shutdown of Formosa Petrochemical Corp’s (FPCC) plant in Taiwan.
Prices had risen since the start of the month despite the traditional lull demand season. High temperatures slow down activities at downstream factories and in the construction industry.
Restocking activities picked up following an unexpected delay in the restart of FPCC’s 600,000 tonne/year base oils plant, helping the prices recover from a general downtrend in June and July.
The plant was taken off line on 9 July for a 55-day turnaround. But the shutdown was extended by a month and the plant is now expected to resume production in October.
