Asia’s base oils supply fell in February to the lowest in almost three years amid a combination of planned and unexpected shutdowns, run-cuts and drop in production capacity.The region's base oils output of less than 820,000 tonnes in February fell from close to 920,000 tonnes the previous month, government data showed.The volume was the lowest since mid-2021.The volume excluded base oils output from China.Lower supply in February cut the region’s export volumes, which fell to the lowest since November.Exports fell in November even with firm regional base oils output. The trend pointed to a build-up of surplus supplies at that time.The synchronized drop in output and exports in February pointed to the lack of such a build-up of surplus supplies this time.Supply fell in February ahead of a typical surge in lube demand throughout Asia in the month of March.The drop in supply curbed blenders’ ability to build stocks ahead of the pick-up in demand.Asia’s Group II base oils prices especially rose relative to regional gasoil prices throughout the first quarter of the year, ICIS data showed.Asia’s base oil prices also held unusually firm relative to prices in more distant markets, reflecting the region’s tighter fundamentals.Asia’s base oils supply showed signs of recovering in March ahead of a seasonal slowdown in the region’s lube consumption at the start of the second quarter of the year.The pick-up in supplies would help to replenish blenders’ feedstock inventories.Their more balanced stocks raised the prospect of curbing their urgency to seek additional volumes during the second quarter of the year..Japan’s February base oils output falls.Thailand’s February base oil supply falls
Asia’s base oils supply fell in February to the lowest in almost three years amid a combination of planned and unexpected shutdowns, run-cuts and drop in production capacity.The region's base oils output of less than 820,000 tonnes in February fell from close to 920,000 tonnes the previous month, government data showed.The volume was the lowest since mid-2021.The volume excluded base oils output from China.Lower supply in February cut the region’s export volumes, which fell to the lowest since November.Exports fell in November even with firm regional base oils output. The trend pointed to a build-up of surplus supplies at that time.The synchronized drop in output and exports in February pointed to the lack of such a build-up of surplus supplies this time.Supply fell in February ahead of a typical surge in lube demand throughout Asia in the month of March.The drop in supply curbed blenders’ ability to build stocks ahead of the pick-up in demand.Asia’s Group II base oils prices especially rose relative to regional gasoil prices throughout the first quarter of the year, ICIS data showed.Asia’s base oil prices also held unusually firm relative to prices in more distant markets, reflecting the region’s tighter fundamentals.Asia’s base oils supply showed signs of recovering in March ahead of a seasonal slowdown in the region’s lube consumption at the start of the second quarter of the year.The pick-up in supplies would help to replenish blenders’ feedstock inventories.Their more balanced stocks raised the prospect of curbing their urgency to seek additional volumes during the second quarter of the year..Japan’s February base oils output falls.Thailand’s February base oil supply falls