Singapore's net base oils exports fell to a five-year-low as imports stayed unusually high while exports remained near multi-year lows
The slump in net exports pointed to domestic production staying below normal
The prolonged slowdown increased reliance on South Korea while drawing additional supplies from Europe and the US
Singapore's base oils exports remained near multi-year lows in June, squeezing supply from one of Asia’s largest export hubs as global supply disruptions extended into the third quarter.
Exports edged up to 118,100 tonnes from 117,500 tonnes in May, Enterprise Singapore data showed. The increase was marginal, leaving June as the second-lowest monthly export volume since May 2020.
Imports climbed to 87,700 tonnes, their highest in nine months and cut net exports to just 30,400 tonnes, the lowest since June 2021.
July showed little sign of recovery, leaving exports unusually weak for three months. The slowdown, combined with rising imports, pointed to domestic production remaining below normal.
The slump in shipments forced regional buyers to rely more heavily on South Korea especially, while drawing additional cargoes from the US and Europe, despite steep price premiums in those markets.
Key Highlights
· Second-quarter exports fell to their lowest level since the fourth quarter of 2022 despite a sharp rebound in imports.
· Imports from Europe rose to their highest quarterly level since the third quarter of 2025, reversing the slowdown that followed Singapore's Group II capacity expansion late last year.
· Net exports fell to their lowest level in five years as higher imports failed to restore export availability.
· The pattern continued into July, with imports climbing further while exports remained unusually subdued.
Market Repercussions
Singapore's prolonged export slump added to a market already facing supply constraints elsewhere.
The loss of Middle East Group III exports had already boosted the importance of South Korean supplies. Singapore's own shortfall deepened that reliance further, cementing South Korea's position as the market's balancing supplier.
Singapore has also drawn more heavily on Europe and the US to cover the gap, tightening supply in those markets.
The disruptions exposed the risks of relying on a limited number of suppliers, encouraging buyers to diversify supply chains even as dependence on South Korea grew.