China’s base oils imports fell to a three-month low in May even as the country’s domestic output held in a narrow range.The trend pointed to steadier domestic demand that was up from last year but remained far below levels before 2022.It also reflected the repercussions of China’s growing self-sufficiency, with domestic base oils supplies covering a larger share of that demand.China’s shrinking demand for shipments from overseas refiners in turn put more pressure on those suppliers to move more cargoes to other markets instead.That pressure rose in May when China’s base oils imports extended their fall and base oils supply in the Asia-Pacific region showed signs of rebounding from April.China’s base oils imports of 109,000 tonnes in May fell from more than 121,000 tonnes in April and for a fourth straight month from year-earlier levels, government data showed.Sliding imports had little impact on domestic base oils supply.Net supply, or domestic output and net imports combined, came to 534,000 tonnes in May.The volume was similar to April and to supply levels during the same month a year earlier.But it remained down from average levels of more than 700,000 tonnes/month in 2021, before China’s more widespread lockdowns in 2022.Steadier net supply at lower levels pointed to a similar trend for China’s domestic demand, as well as shrinking requirements for overseas supplies.China's base oils imports accounted for 20% of supply in May and a 25% share in the first five months of the year.The share was down from around 29% of the total in 2023 and 30% of the total in 2022.The fall in imports in May especially coincided with a pick-up in base oils exports from key regional sources like South Korea, Singapore and Taiwan.The disconnect increased the importance of alternative outlets for the shipments.Base oils exports from South Korea to India rose to a thirty-four-month high in May, reflecting that country’s role as one such key alternative outlet.That role also faced the prospect of change over the coming year as a swathe of new base oils production capacity in India starts to come online..China May base oils output holds steady.S Korea's May base oils exports to India rise
China’s base oils imports fell to a three-month low in May even as the country’s domestic output held in a narrow range.The trend pointed to steadier domestic demand that was up from last year but remained far below levels before 2022.It also reflected the repercussions of China’s growing self-sufficiency, with domestic base oils supplies covering a larger share of that demand.China’s shrinking demand for shipments from overseas refiners in turn put more pressure on those suppliers to move more cargoes to other markets instead.That pressure rose in May when China’s base oils imports extended their fall and base oils supply in the Asia-Pacific region showed signs of rebounding from April.China’s base oils imports of 109,000 tonnes in May fell from more than 121,000 tonnes in April and for a fourth straight month from year-earlier levels, government data showed.Sliding imports had little impact on domestic base oils supply.Net supply, or domestic output and net imports combined, came to 534,000 tonnes in May.The volume was similar to April and to supply levels during the same month a year earlier.But it remained down from average levels of more than 700,000 tonnes/month in 2021, before China’s more widespread lockdowns in 2022.Steadier net supply at lower levels pointed to a similar trend for China’s domestic demand, as well as shrinking requirements for overseas supplies.China's base oils imports accounted for 20% of supply in May and a 25% share in the first five months of the year.The share was down from around 29% of the total in 2023 and 30% of the total in 2022.The fall in imports in May especially coincided with a pick-up in base oils exports from key regional sources like South Korea, Singapore and Taiwan.The disconnect increased the importance of alternative outlets for the shipments.Base oils exports from South Korea to India rose to a thirty-four-month high in May, reflecting that country’s role as one such key alternative outlet.That role also faced the prospect of change over the coming year as a swathe of new base oils production capacity in India starts to come online..China May base oils output holds steady.S Korea's May base oils exports to India rise
