Thailand’s base oils output edged lower in June, contrasting with a jump in the country’s imports to a two-year high.Group I base oils output dipped to less than 52,000 kilolitres (46,000 tonnes) in June, down from close to 54,000 kilolitres the previous month, government data showed.Output fell by 10% in June and for a seventh straight month from year-earlier levels.Base oils output extended its fall even with regional base oils prices holding firm so far this year and with brightstock supply tighter than usual.Asia’s base oils prices held firm and supply tighter following the closure of a Group I plant in Japan late last year.The drop in Thailand’s base oils output compounded the region's Group I supply tightness.Increasingly limited availability of Group I base oils incentivized the region’s buyers to seek supplies from more distant sources like the Middle East.It also speeded up moves to maximise consumption of premium-grade base oils in place of Group I supplies.The drop in Thailand’s base oils output contrasted with a strong rise in the country's base oil imports so far this year.That rise extended to June, with imports of more than 42,000 kilolitres climbing to the highest since first-half 2022.Most of the supplies consisted of premium-grade base oils.Thailand's diverging production and import trends suggested that they may be connected and could reflect domestic blenders' rising requirements for premium-grade base oils instead of Group I supplies.Imports from South Korea and Singapore combined accounted for more than 90% of the June volume.Those two countries' large share of Thailand’s base oils imports mirrored a similar pattern in other regional markets like Vietnam and Indonesia.The dynamic reflected those markets’ reliance on imports to cover their requirements for premium-grade base oils.That reliance contrasted with China and India, where a recent or upcoming surge in domestic base oils production capacity curbed their requirements for overseas supplies.The trend increased the importance of markets like Thailand and Vietnam as key outlets for supplies from South Korea and Singapore..Japan’s June base oils output falls.Thailand’s May base oils supply rises
