Since June, the supply of domestic base oil has increased continuously, and the downstream has entered the traditional off-season since the two quarter, and import demand has steadily slowed down. In May, the output of one category of oil, two kinds of oil and white oil was basically stable. Although the new production capacity of the two kinds of oil came out, Dalian Hengli device started sales, but at the same time, affected by the depressed market demand, some enterprises stopped working and overhauled or reduced production rate.
From the market perspective, The price of a class of 150SN and 400SN has not been much larger than before. Dalian petrochemical and its major traders basically maintained their previous quotations. however Because the price of the two kind of 150N is too cheap, or even lower than that of a class of 150SN, 150SN transaction volume is generally less. The 500SN supplied by Thailand is more stable. In terms of bright oil, Thailand's import traders appropriately lowered their quotations to promote sales before the domestic quotations were basically maintained.
The two type of base oil began in the second half of 5 months. Affected by constant force feed production and CNOOC's resumption in Huizhou, the supply of two kinds of 150N continues to increase and downstream demand is depressed, causing market prices to continue to fall. The more depressed demand has restrained shipments from Taiwan to mainland China, and supply has tightened. The price of the two class N150 of Taiwan in eastern China is mostly stable at 6800-6900 yuan / ton. The price of the two kind of 500N has also dropped sharply, and the importers are more cautious.
The three type of base oil, the Korean refinery 150N, has been relatively stable in recent years. 100N and 250N fluctuated greatly, and had a significant decline in late May. The three category of oil in Abu Dhabi has also been stable at around 8300-8500.
On the whole, with the fluctuation of crude oil prices and the impact of international trade friction, the import base oil is hard to increase significantly. Domestic downstream demand continues to slump, coupled with stable production of new capacity, followed by the entry of CTL products. It is expected that the base oil market will not improve.
