Asia’s base oils supply fell to a five-month low in December, with the slowdown outpacing a seasonal drop in regional lube demand.The drop in output also coincided with a rise in Asia’s base oils exports in December.The combination of lower output and relatively firmer demand cut the region’s surplus supply heading into the start of this year.Asia’s base oils prices still weakened relative to feedstock and diesel prices in the first few weeks of this year, ICIS data showed.But the drop in prices was smaller than the sharper squeeze on base oil margins in Europe and the US.Asia’s base oils output of more than 870,000t in December fell from close to 900,000t the previous month, government and industry data showed.The volume excluded base oils production in China.Total output of 11.1mn t in 2023 edged down from 11.2mn t in 2022 but was still the second highest in at least seven years.The drop in output in December contrasted with and magnified the impact of the more-than 40,000t rise in the region’s exports that month from November.The size of the drop in output also outpaced the 12,500t fall in Asia’s lube demand in December from the previous month.The surplus of supply over regional lube demand narrowed in response to less than 140,000t in December.The surplus fell from more than 145,000t the previous month and from close to 250,000t in December 2022.Including base oils production in China, Asia’s base oils output of more than 1.30mn t in December was steady from the previous month.Output of close to 15.60mn t in 2023 was up from around 15.50mn t the previous year..Asia’s December lube demand rises.Asia’s December base oils exports rise
Asia’s base oils supply fell to a five-month low in December, with the slowdown outpacing a seasonal drop in regional lube demand.The drop in output also coincided with a rise in Asia’s base oils exports in December.The combination of lower output and relatively firmer demand cut the region’s surplus supply heading into the start of this year.Asia’s base oils prices still weakened relative to feedstock and diesel prices in the first few weeks of this year, ICIS data showed.But the drop in prices was smaller than the sharper squeeze on base oil margins in Europe and the US.Asia’s base oils output of more than 870,000t in December fell from close to 900,000t the previous month, government and industry data showed.The volume excluded base oils production in China.Total output of 11.1mn t in 2023 edged down from 11.2mn t in 2022 but was still the second highest in at least seven years.The drop in output in December contrasted with and magnified the impact of the more-than 40,000t rise in the region’s exports that month from November.The size of the drop in output also outpaced the 12,500t fall in Asia’s lube demand in December from the previous month.The surplus of supply over regional lube demand narrowed in response to less than 140,000t in December.The surplus fell from more than 145,000t the previous month and from close to 250,000t in December 2022.Including base oils production in China, Asia’s base oils output of more than 1.30mn t in December was steady from the previous month.Output of close to 15.60mn t in 2023 was up from around 15.50mn t the previous year..Asia’s December lube demand rises.Asia’s December base oils exports rise