Asia’s base oils exports fell to a four-month low in November amid a slump in supplies from northeast Asia.The drop in shipments curbed the size of any build-up of regional blenders’ inventories before year-end.It also pointed to a reluctance among blenders to add to their stocks, as well as a less feasible arbitrage to more distant markets.The scenario raised the prospect of a build-up of surplus supplies to clear at year-end and early this year, especially of Group III base oils.Asia’s base oils exports fell to less than 570,000t in November, from close to 680,000t the previous month, government data showed.Exports of around 3.10mn t in the five months to November were down from close to 3.40mn t during the same period a year earlier.The drop in shipments reflected the Asia market’s more balanced supply during second-half 2023 amid a combination of firmer regional demand, plant maintenance work and a plant closure.Exports fell unusually steeply in November from the previous month mostly because of a slump in shipments from South Korea.Shipments from that market, as well as Taiwan, likely recovered in December..S Korea’s Nov base oils exports fall.Taiwan’s Nov base oils exports stay low
Asia’s base oils exports fell to a four-month low in November amid a slump in supplies from northeast Asia.The drop in shipments curbed the size of any build-up of regional blenders’ inventories before year-end.It also pointed to a reluctance among blenders to add to their stocks, as well as a less feasible arbitrage to more distant markets.The scenario raised the prospect of a build-up of surplus supplies to clear at year-end and early this year, especially of Group III base oils.Asia’s base oils exports fell to less than 570,000t in November, from close to 680,000t the previous month, government data showed.Exports of around 3.10mn t in the five months to November were down from close to 3.40mn t during the same period a year earlier.The drop in shipments reflected the Asia market’s more balanced supply during second-half 2023 amid a combination of firmer regional demand, plant maintenance work and a plant closure.Exports fell unusually steeply in November from the previous month mostly because of a slump in shipments from South Korea.Shipments from that market, as well as Taiwan, likely recovered in December..S Korea’s Nov base oils exports fall.Taiwan’s Nov base oils exports stay low