Japan’s base oils and lube output fell in August to the lowest almost three years as the shutdown of a major base oils unit compounded the drop in the country’s production capacity.A seasonal slowdown in demand partially cushioned the impact of the drop in output.Supply still tightened sharply, triggering a drop in exports to a three-month low.Japan’s base oils and lube output of 150,170 kilolitres (133,000 tonnes) in August fell from 187,300 kilolitres the previous month, government data showed.Production fell for a seventeenth straight month from year-earlier levels to the lowest since late-2021.The extended contraction reflected the impact of lower production capacity following the closure of two base oils units in Japan in the last two years.A major base oils unit was then taken offline from early July after a fire, compounding the drop in output.Supply remained sufficient to meet domestic demand, partly because of a seasonal dip in consumption in the month of August.Supply could face more difficulty to cover domestic requirements in September, when consumption typically gets a seasonal boost.The tighter supply had a more immediate impact on Japan’s base oils exports, which fell for a twelfth month in August from year-earlier levels.Exports to southeast Asia continued to fall the most.The drop in shipments forced buyers in that region to seek alternative Group I supplies or alternatives to Group I supplies.The drop in exports to China was more muted so far this year, with shipments even rising in the month of August.The planned closure of a Group I plant in China in October could support stronger demand for supplies from Japan over the coming months.Japan’s tighter supply could complicate its ability to cover any such pick-up in requirements from the country..Asia’s July lube demand falls.Japan’s July base oils supply stays lower.China’s August base oils imports rise
Japan’s base oils and lube output fell in August to the lowest almost three years as the shutdown of a major base oils unit compounded the drop in the country’s production capacity.A seasonal slowdown in demand partially cushioned the impact of the drop in output.Supply still tightened sharply, triggering a drop in exports to a three-month low.Japan’s base oils and lube output of 150,170 kilolitres (133,000 tonnes) in August fell from 187,300 kilolitres the previous month, government data showed.Production fell for a seventeenth straight month from year-earlier levels to the lowest since late-2021.The extended contraction reflected the impact of lower production capacity following the closure of two base oils units in Japan in the last two years.A major base oils unit was then taken offline from early July after a fire, compounding the drop in output.Supply remained sufficient to meet domestic demand, partly because of a seasonal dip in consumption in the month of August.Supply could face more difficulty to cover domestic requirements in September, when consumption typically gets a seasonal boost.The tighter supply had a more immediate impact on Japan’s base oils exports, which fell for a twelfth month in August from year-earlier levels.Exports to southeast Asia continued to fall the most.The drop in shipments forced buyers in that region to seek alternative Group I supplies or alternatives to Group I supplies.The drop in exports to China was more muted so far this year, with shipments even rising in the month of August.The planned closure of a Group I plant in China in October could support stronger demand for supplies from Japan over the coming months.Japan’s tighter supply could complicate its ability to cover any such pick-up in requirements from the country..Asia’s July lube demand falls.Japan’s July base oils supply stays lower.China’s August base oils imports rise
