Japan’s domestic base oils and lubricants demand rose in January for the third time in four months, contrasting with an increasingly steep slump in exports.The size of the drop in base oils exports pointed more to insufficient supply rather than a sharp fall in overseas demand.The trend highlighted the impact beyond Japan of the closure of two of the country’s base oils units since second-half 2022.It also highlighted the challenge for major overseas buyers to find alternative supplies in place of the drop in shipments from Japan.Supply remained sufficient to cover Japan’s domestic demand.Base oils and lube consumption of 137,400 kilolitres (122,000t) in January rose by 3pc from year-earlier levels, government data showed.Consumption rose even in the face of a sharp fall in Japan’s industrial production in January. Industrial output was expected to recover in February and March.Japan’s industrial oils consumption rose in December for the second time in three months and contrasted with a dip in the country’s engine oils consumption.Steady domestic demand contrasted with a 45pc drop in Japan’s base oils exports in January. The contraction was the twelfth in thirteen months.Exports to Singapore almost ground to a halt in January, after averaging more than 21,000 kl/month in 2023.Shipments to South Korea were down by more than 50pc in January from typical levels in 2023.The drop in shipments to Singapore coincided with additional logistical difficulties with moving supplies to the island-state from Europe.Asia’s firm Group I base oils prices so far this year reflected the tighter supply fundamentals..Japan’s January base oils supply falls
Japan’s domestic base oils and lubricants demand rose in January for the third time in four months, contrasting with an increasingly steep slump in exports.The size of the drop in base oils exports pointed more to insufficient supply rather than a sharp fall in overseas demand.The trend highlighted the impact beyond Japan of the closure of two of the country’s base oils units since second-half 2022.It also highlighted the challenge for major overseas buyers to find alternative supplies in place of the drop in shipments from Japan.Supply remained sufficient to cover Japan’s domestic demand.Base oils and lube consumption of 137,400 kilolitres (122,000t) in January rose by 3pc from year-earlier levels, government data showed.Consumption rose even in the face of a sharp fall in Japan’s industrial production in January. Industrial output was expected to recover in February and March.Japan’s industrial oils consumption rose in December for the second time in three months and contrasted with a dip in the country’s engine oils consumption.Steady domestic demand contrasted with a 45pc drop in Japan’s base oils exports in January. The contraction was the twelfth in thirteen months.Exports to Singapore almost ground to a halt in January, after averaging more than 21,000 kl/month in 2023.Shipments to South Korea were down by more than 50pc in January from typical levels in 2023.The drop in shipments to Singapore coincided with additional logistical difficulties with moving supplies to the island-state from Europe.Asia’s firm Group I base oils prices so far this year reflected the tighter supply fundamentals..Japan’s January base oils supply falls