Singapore’s base oils exports rose to a three-month high, driven largely by a surge in re-exports
Domestic exports fell and remained well below normal, while imports dropped to their lowest weekly level since October 2025
With less imported supply available to offset any production constraints, a sustained recovery in domestic output and exports becomes increasingly important
Singapore’s base oils exports rose to a three-month high in the four weeks to 19 August, but a surge in re-exports accounted for much of the increase as domestic shipments fell.
Singapore is a major source of base oils for Asia, so its prolonged export slowdown compounded tighter regional availability. A sustained recovery would add supply just as demand typically starts to pick up toward the end of the third quarter.
Exports rose to more than 145,000 tonnes in the four weeks to 19 August from more than 140,000 tonnes in the previous four weeks and less than 120,000 tonnes in May and June, Enterprise Singapore data showed.
A surge in re-exports in the past week drove the increase, with most of the volume moving to Hong Kong, typically an outlet for much smaller volumes from Singapore.
The increase contrasted with a drop in Singapore’s domestic exports and a slump in weekly imports.
A surge in imports in recent months without a matching rise in re-exports had pointed to more imported material being used domestically, freeing up limited local production for export.
Rising exports alongside falling imports would normally point toward a return to more typical trade flows before May. The drop in domestic exports means such a scenario remains uncertain.
Key Highlights
· Re-exports rose above 31,000 tonnes in the four weeks to 19 August, the highest in more than three months.
· Weekly re-exports exceeded 20,000 tonnes, the highest weekly volume in more than four years.
· Most of the re-export volumes moved to Hong Kong, which was typically the destination for less than 1,500 tonnes/month of shipments from Singapore.
· Domestic exports fell below 115,000 tonnes, remaining well below the 147,000-tonne monthly average in the year to April.
· Four-week imports fell below 90,000 tonnes for the first time since early July, while weekly imports dropped below 1,500 tonnes, the lowest since October 2025.
Market Repercussions
Domestic exports are trending higher from their May and June lows, but remain well below normal levels.
At the same time, the slump in imports and the slowdown in flows from Europe have left less outside supply to offset any remaining production constraints.
With less of a backstop available, a sustained recovery in domestic output and exports becomes all the more important.