Japan’s base oils output fell to an eight-month low in October following the closure of one of the country’s Group I plants at end-September.The fall in Japan’s structural base oils supply is likely to reduce the persistent surplus of Group I base oils that the Asia-Pacific market faced over the past year.The planned closure of another Group I base oils unit in Japan next year would likely have an even larger market impact as supply tightens significantly.Japan’s base oils output of 191,590 kilolitres (169,710t) in October fell from 227,920kl the previous month, government data showed. The volume was the lowest since February..Base oils output still rose in October for an eighth straight month from year-earlier levels, lifting total production to 2.11mn kl in the first 10 months of the year. The volume was up 24pc from 1.70mn kl during the same period last year.The higher output reflected unusually high run rates even as refiners boosted middle distillates production. This year’s round of base oils plant maintenance work in Japan was unusually light in the first three quarters of the year.The lower output in October coincided with plant maintenance during the month. It also followed the closure of Eneos’ 225,000 t/yr Group I plant at Negishi at end-September.Its 355,000 t/yr Group I plant at Wakayama is set to be closed by the end of the third quarter of next year.Next year’s plant closure would also coincide with a heavier round of plant maintenance compared with this year.The plant closures and maintenance work raise the prospect of a significant fall in Japan’s Group I base oils supplies next year.Asia-Pacific Group I base oils prices have been unusually weak this year relative to crude and diesel because of persistent surplus supply and weak Chinese demand.Prices would likely reflect the switch from surplus to increasingly tighter availability. .Japan’s September base oils exports fall
Japan’s base oils output fell to an eight-month low in October following the closure of one of the country’s Group I plants at end-September.The fall in Japan’s structural base oils supply is likely to reduce the persistent surplus of Group I base oils that the Asia-Pacific market faced over the past year.The planned closure of another Group I base oils unit in Japan next year would likely have an even larger market impact as supply tightens significantly.Japan’s base oils output of 191,590 kilolitres (169,710t) in October fell from 227,920kl the previous month, government data showed. The volume was the lowest since February..Base oils output still rose in October for an eighth straight month from year-earlier levels, lifting total production to 2.11mn kl in the first 10 months of the year. The volume was up 24pc from 1.70mn kl during the same period last year.The higher output reflected unusually high run rates even as refiners boosted middle distillates production. This year’s round of base oils plant maintenance work in Japan was unusually light in the first three quarters of the year.The lower output in October coincided with plant maintenance during the month. It also followed the closure of Eneos’ 225,000 t/yr Group I plant at Negishi at end-September.Its 355,000 t/yr Group I plant at Wakayama is set to be closed by the end of the third quarter of next year.Next year’s plant closure would also coincide with a heavier round of plant maintenance compared with this year.The plant closures and maintenance work raise the prospect of a significant fall in Japan’s Group I base oils supplies next year.Asia-Pacific Group I base oils prices have been unusually weak this year relative to crude and diesel because of persistent surplus supply and weak Chinese demand.Prices would likely reflect the switch from surplus to increasingly tighter availability. .Japan’s September base oils exports fall
