Base oils supply in Asia-Pacific fell in June to a one-year low in the face of plant run cuts and maintenance work.Regional supply remained sufficient even with the slowdown amid unusually weak Chinese demand.Base oils supply of less than 886,000t in June fell from more than 905,000t in May to the lowest since June 2021. Its 2pc rise from year-earlier levels was the smallest increase in 15 months..The volume was derived from seven key suppliers in the Asia-Pacific region, excluding China and Indonesia.Including China, Asia-Pacific supply of more than 1.18mn t in June was down 15pc from year-earlier levels.Supply of 2.74mn t in the second quarter of the year was down 4pc from 2.84mn t in the first three months of the year. It was up from 2.41mn t during the second quarter of 2021.The higher second-quarter supplies from a year earlier coincided with lower demand compared with the same time last year. Higher consumption in southeast Asia was insufficient to balance out the slump in Chinese demand..China's July base oils demand stays low.The disconnect between supply and demand left a persistent overhang of surplus cargoes, even with the drop in output in June.The weak fundamentals kept pressure on regional base oils prices that fell to steep discounts to prices in other regions.The discounts created arbitrage opportunities that enabled producers to clear some of the surplus. Run cuts and scheduled maintenance work also trimmed the overhang..Asia's July exports to Americas rise.Those various moves trimmed supply from a raft of sources including South Korea, India, Taiwan, Thailand, and Pakistan.Including China, Asia-Pacific supply of 3.74mn t in the second quarter was down 8pc from 4.05mn t during the same period last year.The lack of regional price support in response to the fall in supply reflected the extent of the drop in Chinese demand.An unusual pick-up in Chinese base oils exports in recent months pointed to ongoing surplus supply in the country, even with its drop in output..Asia’s May base oils supply falls
Base oils supply in Asia-Pacific fell in June to a one-year low in the face of plant run cuts and maintenance work.Regional supply remained sufficient even with the slowdown amid unusually weak Chinese demand.Base oils supply of less than 886,000t in June fell from more than 905,000t in May to the lowest since June 2021. Its 2pc rise from year-earlier levels was the smallest increase in 15 months..The volume was derived from seven key suppliers in the Asia-Pacific region, excluding China and Indonesia.Including China, Asia-Pacific supply of more than 1.18mn t in June was down 15pc from year-earlier levels.Supply of 2.74mn t in the second quarter of the year was down 4pc from 2.84mn t in the first three months of the year. It was up from 2.41mn t during the second quarter of 2021.The higher second-quarter supplies from a year earlier coincided with lower demand compared with the same time last year. Higher consumption in southeast Asia was insufficient to balance out the slump in Chinese demand..China's July base oils demand stays low.The disconnect between supply and demand left a persistent overhang of surplus cargoes, even with the drop in output in June.The weak fundamentals kept pressure on regional base oils prices that fell to steep discounts to prices in other regions.The discounts created arbitrage opportunities that enabled producers to clear some of the surplus. Run cuts and scheduled maintenance work also trimmed the overhang..Asia's July exports to Americas rise.Those various moves trimmed supply from a raft of sources including South Korea, India, Taiwan, Thailand, and Pakistan.Including China, Asia-Pacific supply of 3.74mn t in the second quarter was down 8pc from 4.05mn t during the same period last year.The lack of regional price support in response to the fall in supply reflected the extent of the drop in Chinese demand.An unusual pick-up in Chinese base oils exports in recent months pointed to ongoing surplus supply in the country, even with its drop in output..Asia’s May base oils supply falls