Japan’s base oils output fell to a four-month low in June, curbing flows available for export.The drop in overseas shipments to southeast Asia was especially steep, keeping pressure on buyers in that market to line up alternative Group I supply sources.The drop in shipments boosted those buyers’ demand for supplies from domestic producers.The stronger demand in turn cut those producers’ availability of surplus Group I supplies for overseas markets.The drop in shipments from Japan and tightening supply from other sources duly increased the need and incentivize for buyers to adjust their lubricants formulations to minimize consumption of Group I base oils.Japan’s base oils and lube output of 173,600 kilolitres (154,000 tonnes) in June fell from more than 177,000 kilolitres in May and for the fifteenth time from year-earlier levels, government data showed.Output kept falling following the closure of two Group I base oils units in the country since late-2022.The lower output more closely matched Japan’s domestic base oils demand.The closer supply-demand balance in turn slashed the surplus supply available for shipment to overseas markets.Japan’s base oils exports extended their slide in June for the seventeenth time in eighteen months.The drop in shipments to southeast Asia remained especially steep.Exports to the region fell by more than 80% in June and by more than 70% from year-earlier levels in five of the last six months to June.The slump in shipments forced buyers in southeast Asia to seek alternative sources for Group I base oils to cover for their requirements or to switch to using more premium-grade base oils..S Korea’s June base oils output slips.Taiwan’s June base oils exports fall.Singapore’s June base oils exports fall
Japan’s base oils output fell to a four-month low in June, curbing flows available for export.The drop in overseas shipments to southeast Asia was especially steep, keeping pressure on buyers in that market to line up alternative Group I supply sources.The drop in shipments boosted those buyers’ demand for supplies from domestic producers.The stronger demand in turn cut those producers’ availability of surplus Group I supplies for overseas markets.The drop in shipments from Japan and tightening supply from other sources duly increased the need and incentivize for buyers to adjust their lubricants formulations to minimize consumption of Group I base oils.Japan’s base oils and lube output of 173,600 kilolitres (154,000 tonnes) in June fell from more than 177,000 kilolitres in May and for the fifteenth time from year-earlier levels, government data showed.Output kept falling following the closure of two Group I base oils units in the country since late-2022.The lower output more closely matched Japan’s domestic base oils demand.The closer supply-demand balance in turn slashed the surplus supply available for shipment to overseas markets.Japan’s base oils exports extended their slide in June for the seventeenth time in eighteen months.The drop in shipments to southeast Asia remained especially steep.Exports to the region fell by more than 80% in June and by more than 70% from year-earlier levels in five of the last six months to June.The slump in shipments forced buyers in southeast Asia to seek alternative sources for Group I base oils to cover for their requirements or to switch to using more premium-grade base oils..S Korea’s June base oils output slips.Taiwan’s June base oils exports fall.Singapore’s June base oils exports fall