Taiwan’s base oils exports rebounded in January even as production issues disrupted output at the end of the month and in early February.Most of the shipments took place in first-half January, limiting the impact of the plant stoppage.Exports are likely to be much lower this month because of the production issues.The wave of shipments in the first few weeks of January coincided with a rise in demand from China as buyers sought to replenish depleted inventories.The slowdown in flows from end-January coincided with a dip in demand from China as the country readied for the lunar new year holidays that began in first-half February.Demand from China then typically rebounds after the lunar new year holidays.Taiwan’s total base oils exports of more than 60,000t in January rose from less than 35,000t during the previous three months combined, government data showed.Exports dipped in the fourth quarter because of the shutdown of Taiwan’s sole Group II base oils unit for maintenance work. The plant resumed operations in first-half December.The drop in shipments included a slump in flows to China, slashing domestic buyers’ inventories.Exports of more than 35,000t to China in January helped to replenish those inventories.China’s domestic Group II light-grade price for imported supplies rose to an unusually steep premium to Group II prices for domestic supplies in November and December 2023, ICIS data showed.The premium widened as supplies originating from Taiwan tightened.The premium then narrowed sharply in second-half December and January as availability improved.Taiwan’s base oils exports to the UAE also rebounded in January to a sixteen-month high of more than 10,500t.There had been no shipments during the fourth quarter of last year, when supplies from South Korea to the UAE also slowed..S Korea’s January exports to Nigeria rise
Taiwan’s base oils exports rebounded in January even as production issues disrupted output at the end of the month and in early February.Most of the shipments took place in first-half January, limiting the impact of the plant stoppage.Exports are likely to be much lower this month because of the production issues.The wave of shipments in the first few weeks of January coincided with a rise in demand from China as buyers sought to replenish depleted inventories.The slowdown in flows from end-January coincided with a dip in demand from China as the country readied for the lunar new year holidays that began in first-half February.Demand from China then typically rebounds after the lunar new year holidays.Taiwan’s total base oils exports of more than 60,000t in January rose from less than 35,000t during the previous three months combined, government data showed.Exports dipped in the fourth quarter because of the shutdown of Taiwan’s sole Group II base oils unit for maintenance work. The plant resumed operations in first-half December.The drop in shipments included a slump in flows to China, slashing domestic buyers’ inventories.Exports of more than 35,000t to China in January helped to replenish those inventories.China’s domestic Group II light-grade price for imported supplies rose to an unusually steep premium to Group II prices for domestic supplies in November and December 2023, ICIS data showed.The premium widened as supplies originating from Taiwan tightened.The premium then narrowed sharply in second-half December and January as availability improved.Taiwan’s base oils exports to the UAE also rebounded in January to a sixteen-month high of more than 10,500t.There had been no shipments during the fourth quarter of last year, when supplies from South Korea to the UAE also slowed..S Korea’s January exports to Nigeria rise
