Japan’s lower base oils supply raises the prospect of having a larger impact on overseas markets than on the country itself as imports rise and exports fall.Supply of 180,430 kilolitres (159,800t) in February fell from 200,370kl in January to a thirteen-month low, government data showed.Total domestic and overseas demand of 162,940kl in February also fell to a thirteen-month low. But it fell more steeply, from 190,450kl in January..A rise in base oils imports cushioned the size of the drop in supply.A fall in exports magnified the drop in demand.Base oils imports rose as shipments from South Korea climbed to a fourteen-month high. Shipments from Qatar doubled in February from the previous month.Both countries are key sources of premium-grade base oils.Japan’s consumption of premium-grade base oils is rising to meet increasingly stringent specifications for high-end engine oils.Its rising consumption of premium grades cut its requirements for Group I base oils.The trend triggered a rise in exports of surplus supplies of Group I base oils from its own refineries.Japan’s base oils exports then slowed following the closure of one of its Group I base oils units in second-half 2022.Exports are likely to dip more over the coming months during a round of scheduled plant maintenance work.Exports are likely to face more downward pressure later in the year when another Group I plant is closed permanently.The trend raises the prospect of tightening Group I supply in key outlets like Singapore and Taiwan.It raises the prospect of having less impact on Japan as it consumes a growing volume of premium-grade base oils..Japan’s Feb base oils exports fall
Japan’s lower base oils supply raises the prospect of having a larger impact on overseas markets than on the country itself as imports rise and exports fall.Supply of 180,430 kilolitres (159,800t) in February fell from 200,370kl in January to a thirteen-month low, government data showed.Total domestic and overseas demand of 162,940kl in February also fell to a thirteen-month low. But it fell more steeply, from 190,450kl in January..A rise in base oils imports cushioned the size of the drop in supply.A fall in exports magnified the drop in demand.Base oils imports rose as shipments from South Korea climbed to a fourteen-month high. Shipments from Qatar doubled in February from the previous month.Both countries are key sources of premium-grade base oils.Japan’s consumption of premium-grade base oils is rising to meet increasingly stringent specifications for high-end engine oils.Its rising consumption of premium grades cut its requirements for Group I base oils.The trend triggered a rise in exports of surplus supplies of Group I base oils from its own refineries.Japan’s base oils exports then slowed following the closure of one of its Group I base oils units in second-half 2022.Exports are likely to dip more over the coming months during a round of scheduled plant maintenance work.Exports are likely to face more downward pressure later in the year when another Group I plant is closed permanently.The trend raises the prospect of tightening Group I supply in key outlets like Singapore and Taiwan.It raises the prospect of having less impact on Japan as it consumes a growing volume of premium-grade base oils..Japan’s Feb base oils exports fall
