Japan’s base oils supply lagged demand in May for the first time in eight months, cutting further the volume of supplies available for export.The drop in supplies for domestic and overseas buyers compounded the tighter availability of Group I base oils in the region, especially in southeast Asia. Asia-Pacific Group I base oils prices, and especially brightstock prices, held firm through the second quarter of the year in response to the region's increasingly tight supply.The firm prices and tight supply incentivized blenders to switch to using Group II base oils where possible.Japan’s base oils and lube production of 177,100 kilolitres (157,000 tonnes) in May fell from more than 187,000 kilolitres in April, government data showed.The contraction also extended for a fourteenth month from year-earlier levels.The prolonged slide in output reflected the country’s lower production capacity following the closure of a Group I base oils unit in the fourth quarter of last year.A slump in shipments from Qatar to Japan in May cut the country’s base oils imports, compounding the drop in supply.Total supply, or output and imports combined, duly fell in May a three-month low of less than 193,000 kilolitres.The lower supply contrasted with a rise in domestic demand.Japan’s base oils and lube consumption of 188,800 kilolitres in May rose for the fourth time in five months to the highest in more than two years.Stronger consumption coincided with a recovery in the country’s industrial production in May as motor vehicles output rebounded.Stronger consumption and lower supply left domestic demand accounting for almost all of that supply.The share was typically less than 80% of total supply in the first four months of this year and around 70% of the total in 2023.Strong domestic demand and its rising share of lower supply cut further the volume of base oils available for export.These duly fell in May for a ninth month from year-earlier levels because of insufficient supply rather than weak overseas demand.Total demand, or domestic consumption and exports combined, rose in May to an eight-month high of 214,000 kilolitres even with the drop in overseas shipments.Supply duly lagged demand in May by the largest amount in twenty months.The shortfall, and likelihood of limited pick-up in domestic output, raised the prospect of a rise in demand for overseas supplies and increasingly limited availability for export..Asia’s April base oils supply falls.Asia’s April lube demand rises
Japan’s base oils supply lagged demand in May for the first time in eight months, cutting further the volume of supplies available for export.The drop in supplies for domestic and overseas buyers compounded the tighter availability of Group I base oils in the region, especially in southeast Asia. Asia-Pacific Group I base oils prices, and especially brightstock prices, held firm through the second quarter of the year in response to the region's increasingly tight supply.The firm prices and tight supply incentivized blenders to switch to using Group II base oils where possible.Japan’s base oils and lube production of 177,100 kilolitres (157,000 tonnes) in May fell from more than 187,000 kilolitres in April, government data showed.The contraction also extended for a fourteenth month from year-earlier levels.The prolonged slide in output reflected the country’s lower production capacity following the closure of a Group I base oils unit in the fourth quarter of last year.A slump in shipments from Qatar to Japan in May cut the country’s base oils imports, compounding the drop in supply.Total supply, or output and imports combined, duly fell in May a three-month low of less than 193,000 kilolitres.The lower supply contrasted with a rise in domestic demand.Japan’s base oils and lube consumption of 188,800 kilolitres in May rose for the fourth time in five months to the highest in more than two years.Stronger consumption coincided with a recovery in the country’s industrial production in May as motor vehicles output rebounded.Stronger consumption and lower supply left domestic demand accounting for almost all of that supply.The share was typically less than 80% of total supply in the first four months of this year and around 70% of the total in 2023.Strong domestic demand and its rising share of lower supply cut further the volume of base oils available for export.These duly fell in May for a ninth month from year-earlier levels because of insufficient supply rather than weak overseas demand.Total demand, or domestic consumption and exports combined, rose in May to an eight-month high of 214,000 kilolitres even with the drop in overseas shipments.Supply duly lagged demand in May by the largest amount in twenty months.The shortfall, and likelihood of limited pick-up in domestic output, raised the prospect of a rise in demand for overseas supplies and increasingly limited availability for export..Asia’s April base oils supply falls.Asia’s April lube demand rises
