China’s base oils exports fell to a four-month low in November, cutting further the availability of surplus supplies in the Asia-Pacific market.The trend raised the prospect of more balanced regional supplies heading into the start of 2023.Exports of 5,690t in November fell from more than 8,800t the previous month to the lowest since July..Export volumes averaged more than 12,000 t/month in the first ten months of the year. The volume was up from less than 10,000 t/month in 2021 and more typical levels of less than 2,500 t/month in 2020.Base oils exports had surged since April and especially during the third quarter of the year in response to unusually weak demand in China’s domestic market.The additional supplies added to a growing surplus of base oils in the Asia-Pacific market. The persistent surplus kept downward pressure on regional base oils prices.The drop in China’s exports in November added to signs of a regionwide slowdown in shipments from key sources like South Korea and Singapore in the fourth quarter of the year. The dwindling surplus supported firmer base oils prices.The slowdown in exports is likely to continue next year if China’s domestic lube demand revives.China’s relaxation of pandemic-related restrictions in recent weeks triggered a surge in infections in the country, cutting immediate demand.Domestic demand is likely to recover after those waves of infections have passed.A slowdown in exports would cut a regular source of light-grade Group I and Group II base oils for India especially. A large volume of the supplies moved to India throughout the past year.A slowdown in exports to Singapore would coincide with signs of lower shipment volumes from Japan. Exports from that country faced the prospect of slowing following the closure of a Group I base oils plant at the end of the third quarter of the year..China’s Nov base oils imports stay low
China’s base oils exports fell to a four-month low in November, cutting further the availability of surplus supplies in the Asia-Pacific market.The trend raised the prospect of more balanced regional supplies heading into the start of 2023.Exports of 5,690t in November fell from more than 8,800t the previous month to the lowest since July..Export volumes averaged more than 12,000 t/month in the first ten months of the year. The volume was up from less than 10,000 t/month in 2021 and more typical levels of less than 2,500 t/month in 2020.Base oils exports had surged since April and especially during the third quarter of the year in response to unusually weak demand in China’s domestic market.The additional supplies added to a growing surplus of base oils in the Asia-Pacific market. The persistent surplus kept downward pressure on regional base oils prices.The drop in China’s exports in November added to signs of a regionwide slowdown in shipments from key sources like South Korea and Singapore in the fourth quarter of the year. The dwindling surplus supported firmer base oils prices.The slowdown in exports is likely to continue next year if China’s domestic lube demand revives.China’s relaxation of pandemic-related restrictions in recent weeks triggered a surge in infections in the country, cutting immediate demand.Domestic demand is likely to recover after those waves of infections have passed.A slowdown in exports would cut a regular source of light-grade Group I and Group II base oils for India especially. A large volume of the supplies moved to India throughout the past year.A slowdown in exports to Singapore would coincide with signs of lower shipment volumes from Japan. Exports from that country faced the prospect of slowing following the closure of a Group I base oils plant at the end of the third quarter of the year..China’s Nov base oils imports stay low