Taiwan’s base oils exports fell to a ten-month low in November, driven by a slump in heavy-grade shipments.

Taiwan exported less than 41,000 tonnes of base oils in November, down from more than 48,000 tonnes in both September and October, government data showed.

A steep drop in heavy-grade exports accounted for most of the contraction.

Their share of Taiwan’s total shipments fell to the lowest since the first half of 2024 and lagged light-grade exports for the first time in five months.

The decrease followed months of weakening regional Group II heavy-grade prices relative to gasoil and to light-grade prices that reflected persistent surplus supply across Asia.

Light-grade prices by contrast held steadier relative to gasoil and to other markets, supported by tighter availability and firmer demand.

The sharp November adjustment marked the first significant change in the composition of Taiwan’s exports since pressure on heavy-grade prices began to emerge at the end of the first half of the year.

It underscored the lag between the onset of heavy-grade price and margins pressure in Asia, and refiners’ subsequent adjustments to output and exports.

The continued flow of heavy-grade shipments during the interim months added to the region’s persistent surplus.

Any extension of these adjustments to other key producers in Asia could prompt heavy-grade base oils fundamentals to tilt back towards balance, helping ease recent price-pressure on heavy-grade supplies.