Taiwan’s base oils exports held firm in December for a second month on the back of a pick-up in shipments of light-grade supplies.The higher volumes outweighed a drop in shipments of heavy-grade base oils.Asia’s Group II base oils prices mirrored a similar dynamic, with light-grade prices under increasing pressure from weaker supply-demand fundamentals in the region.Still-tighter availability of heavy grades by contrast supported unusually firm prices for those supplies.Taiwan’s total base oils exports of close to 44,000 tonnes in December fell from 53,800 tonnes the previous month, government data showed.The November exports got a lift from the addition of shipments that were delayed from the month of October.Light grades accounted for more than 60% of the December volume, port data showed. They had accounted for around half the total in each of the previous four months.Taiwan’s shipments to China stayed low at less than 14,000 tonnes in December, accounting for less than 32% of total exports.Monthly shipments to China accounted for more than 50% of its total exports just once last year, in the month of January. They accounted for more than 50% of the total five times in 2023.The dwindling share of shipments to China reflected a combination of rising domestic supply in that country, curbing its need for additional volumes.China’s removal of tariff concessions on supplies from Taiwan in mid-year then cut further the competitiveness of its shipments, compounding the drop in demand.More of Taiwan’s shipments instead moved to southeast Asia and India, with the trend extending into December.Exports to southeast Asia exceeded the 17,000-tonne level in December for the fourth time last year. They had never exceeded that level before 2024.The sustained rise in shipments to southeast Asia and India in 2024 already increased competition with supplies from Singapore and South Korea that also targeted those markets.That competition is set to intensify this year following the planned start-up of new base oils production capacity in India and Singapore.Taiwan’s shipments could then face the challenge of again having to target other markets instead..Taiwan’s Nov base oils exports rise.India’s Dec lube demand extends rise.Asia’s November lube demand mixed
