Guangzhou implemented traffic control restrictions with the aim of improving the air quality and reducing traffic congestion during the Guangzhou Asian Games effective from Nov 1 to Dec 21, according to announcement from the municipal government.
Oil trucks would be banned out or merely allowed on the roads at night time during the said period, according to the announcement.
Base oil delivery by truck was thus greatly interrupted, according to the regulations. In face of constrained transportation during the coming two months, local traders kept base oil prices unchanged in a bid to release their inventories, a Guangzhou-based trader said. Prices in Guangdong had been lower than those in other areas of South China, he noted. For example, mainstream trading price of Group II 150N resources was at only Yuan 9,500/mt in Guangdong, versus Yuan 9,600-9,700/mt in other areas of South China, he illustrated.
The price gap would grow wider with base oil delivery to be further hindered by the regulations, he estimated.
Oil trucks would be banned out or merely allowed on the roads at night time during the said period, according to the announcement.
Base oil delivery by truck was thus greatly interrupted, according to the regulations. In face of constrained transportation during the coming two months, local traders kept base oil prices unchanged in a bid to release their inventories, a Guangzhou-based trader said. Prices in Guangdong had been lower than those in other areas of South China, he noted. For example, mainstream trading price of Group II 150N resources was at only Yuan 9,500/mt in Guangdong, versus Yuan 9,600-9,700/mt in other areas of South China, he illustrated.
The price gap would grow wider with base oil delivery to be further hindered by the regulations, he estimated.
