China’s premium-grade base oils output held firm in February, contrasting with a slump in production of Group I base oils.Total paraffinic base oils output of 427,000 tonnes in February fell from more than 450,000 tonnes the previous month, according to OilChem China.The slowdown from January reflected the fewer days in the month of February.Total output of more than 15,200 tonnes/day in February rose from 14,700 tonnes/day the previous month to the highest since last October..Output rose despite a drop in Group I base oils production to less than 2,000 tonnes/day in February. The volume was the lowest since August 2022.Total base oils output still fell in February for a second month from year-earlier levels.The drop in total output pointed to the need for a further rise in production of premium-grade base oils or a pick-up in imports to cover the shortfall.It could also point to a slowdown in domestic demand.Total output of less than 883,000 tonnes in the first two months of the year contrasted with output and imports combined of more than 1.20 million tonnes during the same period last year.Base oils imports would need to reach more than 330,000 tonnes in the first two months of this year to match last year’s total supply levels.Such a volume would be higher than imports of 306,000 tonnes in the first two months of last year.Any such rise in imports would contrast with a sustained fall in China’s base oils imports throughout most of last year.A narrowing premium of China’s domestic Group II base oils prices over FOB Asia cargo prices complicated any such pick-up in imports by cutting the attraction of lining up more shipments to move to the country.China's lower base oils output and the narrowing premium to FOB Asia prices instead suggested there was a lack of demand for such additional supplies..Taiwan’s January base oils exports fall.S Korea’s January base oils exports fall.China’s Jan base oils output holds firm
