China’s base oils imports fell for a third month in April from year-earlier levels amid a dip in shipments from key suppliers of Group II base oils and a slump in flows from the Middle East.Exports by contrast rose to a six-month high in April amid a surge in flows to India.The contrasting trends highlighted China’s waning demand for overseas supplies of Group II base oils and signs of growing surplus availability of premium-grade base oils.The diverging trade dynamics raised the prospect of additional premium-grade base oils supplies seeking alternative outlets instead of China.That challenge could get even harder over the coming year as new base oils production capacity in India starts to come online.The rise in output in that country is similarly likely to curb its requirements for overseas supplies.China’s base oils imports of 121,400 tonnes in April fell from almost 194,000 tonnes the previous month and by 24% from year-earlier levels, government data showed.The volume was the lowest for the month of April in more than seven years.Imports of 86,200 tonnes in April from South Korea, Singapore and Taiwan combined fell from more than 135,000 tonnes in March to the second-lowest level in six months.Those markets are key producers of Group II base oils.China's imports of 457,700 tonnes from those markets in the first four months of the year were down 18% from 559,100 tonnes during the same period a year earlier.A recovery in China’s domestic Group II base oils production outpaced the fall in imports.Output of 1.40 million tonnes in the first four months of the year was up 45% from 963,000 tonnes during the same period a year earlier.The disconnect left a growing surplus even at a time of year when domestic demand typically rises.The premium of China’s domestic Group II prices over FOB NE Asia cargo prices fell through April to its narrowest in more than a year.The trend reflected the increasingly unattractive arbitrage to move more supplies to China.A growing surplus in the country instead triggered a surge in its base oils exports in April to a six-month high of more than 25,000 tonnes.Exports got a boost from a surge in shipments to India to more than 10,000 tonnes.The volume was the highest in more than seven years and added to a swathe of surplus shipments from other markets that also moved to India during the second quarter of the year..China’s April base oils output falls.Taiwan’s April base oils exports slip.S Korea’s April base oils exports fall
China’s base oils imports fell for a third month in April from year-earlier levels amid a dip in shipments from key suppliers of Group II base oils and a slump in flows from the Middle East.Exports by contrast rose to a six-month high in April amid a surge in flows to India.The contrasting trends highlighted China’s waning demand for overseas supplies of Group II base oils and signs of growing surplus availability of premium-grade base oils.The diverging trade dynamics raised the prospect of additional premium-grade base oils supplies seeking alternative outlets instead of China.That challenge could get even harder over the coming year as new base oils production capacity in India starts to come online.The rise in output in that country is similarly likely to curb its requirements for overseas supplies.China’s base oils imports of 121,400 tonnes in April fell from almost 194,000 tonnes the previous month and by 24% from year-earlier levels, government data showed.The volume was the lowest for the month of April in more than seven years.Imports of 86,200 tonnes in April from South Korea, Singapore and Taiwan combined fell from more than 135,000 tonnes in March to the second-lowest level in six months.Those markets are key producers of Group II base oils.China's imports of 457,700 tonnes from those markets in the first four months of the year were down 18% from 559,100 tonnes during the same period a year earlier.A recovery in China’s domestic Group II base oils production outpaced the fall in imports.Output of 1.40 million tonnes in the first four months of the year was up 45% from 963,000 tonnes during the same period a year earlier.The disconnect left a growing surplus even at a time of year when domestic demand typically rises.The premium of China’s domestic Group II prices over FOB NE Asia cargo prices fell through April to its narrowest in more than a year.The trend reflected the increasingly unattractive arbitrage to move more supplies to China.A growing surplus in the country instead triggered a surge in its base oils exports in April to a six-month high of more than 25,000 tonnes.Exports got a boost from a surge in shipments to India to more than 10,000 tonnes.The volume was the highest in more than seven years and added to a swathe of surplus shipments from other markets that also moved to India during the second quarter of the year..China’s April base oils output falls.Taiwan’s April base oils exports slip.S Korea’s April base oils exports fall
