Base oils supply in the Asia-Pacific region held in November at its second-lowest level in the past seventeen months as maintenance work and run-cuts capped output.The drop in production trimmed the availability of supplies for export and curbed producers’ need to line up arbitrage shipments to more distant markets.The removal of the need to clear surplus supplies in turn eased pressure on regional prices. These fell more slowly than prices in other markets.The lower supply also curbed the volume of supplies that producers sought to clear before year-end for accounting purposes.It also left refiners with more balanced supplies at the start of the new year and ahead of a seasonal rise in demand during the first quarter.The rise in demand is likely to get a further boost from a pick-up in China’s economic activity after its removal of most Covid-related restrictions late last year.Asia-Pacific base oils supply of more than 881,000t in November rose from less than 847,000t the previous month, government and industry data showed..The volume was the second lowest since June 2021. The lowest during that time was in October.The volume was derived from seven key suppliers in the Asia-Pacific region, excluding China and Indonesia.The 6pc slowdown in base oils production in October and November contrasted with a 12pc rise in supply to more than 8.50mn t in the first nine months of the year.The rise in supply coincided with a slump in China’s base oils demand as repeated lockdowns in the country slashed economic growth.The slowdown in supply in October and November coincided with a seasonal pick-up in Chinese buying interest.The country’s demand showed signs of rising further in December following the scrapping of China’s zero-Covid policy.Its demand for overseas shipments was likely to get a further boost because of insufficient supply from domestic producers.Low supply in the Asia-Pacific region, combined with reviving demand from China, was likely to curb the availability of arbitrage shipments for other markets at least during the first few months of this year..Asia’s Nov base oils exports stay low
Base oils supply in the Asia-Pacific region held in November at its second-lowest level in the past seventeen months as maintenance work and run-cuts capped output.The drop in production trimmed the availability of supplies for export and curbed producers’ need to line up arbitrage shipments to more distant markets.The removal of the need to clear surplus supplies in turn eased pressure on regional prices. These fell more slowly than prices in other markets.The lower supply also curbed the volume of supplies that producers sought to clear before year-end for accounting purposes.It also left refiners with more balanced supplies at the start of the new year and ahead of a seasonal rise in demand during the first quarter.The rise in demand is likely to get a further boost from a pick-up in China’s economic activity after its removal of most Covid-related restrictions late last year.Asia-Pacific base oils supply of more than 881,000t in November rose from less than 847,000t the previous month, government and industry data showed..The volume was the second lowest since June 2021. The lowest during that time was in October.The volume was derived from seven key suppliers in the Asia-Pacific region, excluding China and Indonesia.The 6pc slowdown in base oils production in October and November contrasted with a 12pc rise in supply to more than 8.50mn t in the first nine months of the year.The rise in supply coincided with a slump in China’s base oils demand as repeated lockdowns in the country slashed economic growth.The slowdown in supply in October and November coincided with a seasonal pick-up in Chinese buying interest.The country’s demand showed signs of rising further in December following the scrapping of China’s zero-Covid policy.Its demand for overseas shipments was likely to get a further boost because of insufficient supply from domestic producers.Low supply in the Asia-Pacific region, combined with reviving demand from China, was likely to curb the availability of arbitrage shipments for other markets at least during the first few months of this year..Asia’s Nov base oils exports stay low
