China’s paraffinic base oils output fell to a four-month low in July amid a slide in Group II and Group III base oils production.Total output of around 350,000t in July fell from close to 390,000t the previous month, OilChem China data showed.The drop in output was the first month-on-month contraction since February. It was the first fall in output from year-earlier levels since March.Base oils output edged up steadily in the second quarter of the year even with a heavy round of plant maintenance work.The recovery went into reverse in July even after the completion of the maintenance work.Production fell in response to additional plant shutdowns and as increasingly weak base oil margins incentivized refiners to focus on producing motor fuels instead..China’s July Group II base oils output falls
China’s paraffinic base oils output fell to a four-month low in July amid a slide in Group II and Group III base oils production.Total output of around 350,000t in July fell from close to 390,000t the previous month, OilChem China data showed.The drop in output was the first month-on-month contraction since February. It was the first fall in output from year-earlier levels since March.Base oils output edged up steadily in the second quarter of the year even with a heavy round of plant maintenance work.The recovery went into reverse in July even after the completion of the maintenance work.Production fell in response to additional plant shutdowns and as increasingly weak base oil margins incentivized refiners to focus on producing motor fuels instead..China’s July Group II base oils output falls