Shandong Jincheng Petrochemical is preparing to shut its Group II base oils unit in Zibo, adding a note of uncertainty to China’s lubricants market just as the industry heads into the final quarter of the year.
A market contact told that the company plans to take the unit offline around September 30, 2025, for maintenance. The duration of the outage has not been confirmed, and the company has yet to issue an official statement, leaving traders and downstream buyers guessing how long supply might be constrained.
The Zibo facility, with a nameplate capacity of 600,000 metric tons per year, is a key producer of Group II base oils used in automotive and industrial lubricants. Any extended halt could ripple through domestic blending operations and raise spot prices, especially if regional demand firms as cooler weather boosts industrial activity.
For now, market participants are watching closely for a formal notice from Shandong Jincheng. Until the company clarifies its maintenance schedule, the potential supply gap remains an open question for both local refiners and international buyers who rely on Chinese output to balance inventories.
