· China’s Shandong diesel premium to crude stays relatively low, deterring rise in output.· China’s diesel demand likely to remain muted as lower consumption in industrial sector counters seasonal pick-up in demand in agricultural sector.· India’s retail diesel premium to crude extends rise, encouraging domestic refiners to maintain high run-rates.· India’s refiners maintain firm base oils output levels in Q2 2023 as they keep refinery run rates at high levels.· Discounted feedstock costs continue to incentivize refiners in markets like India and China to boost output and re-sell products like base oils at competitive levels at or below market prices.· The moves add to base oils supply in both markets, cutting import requirements and increasing prospect of more exports.· Most plant maintenance work in northeast and southeast Asia set to be completed by end-Q2 2023.· Indonesia’s April Group III base oils shipments rebound from 28-month low in March.· Supplies add to signs of more healthy global availability of Group III base oils in Q2 2023 despite maintenance work affecting two major plants.· Thailand’s April base oils supply lags demand for fourth month amid signs that refiners seek to maintain low stocks..· Strategy adds volumes to well-supplied markets at a time when outright prices face pressure but price premium to diesel stays high.· Strategy of lower stocks cuts refiners’ exposure to lower prices.· Conversely, refiners often seek to hold back supplies when prices are trending up in order to lock in higher prices.· Asia’s base oils supply falls sharply in April from March, coincides with rising base oils premium to crude and diesel..· Scheduled plant maintenance work likely keeps supply at lower levels through Q2 2023.· South Korea’s April base oils’ share of total refinery output rises to 10-month high against backdrop of strong margins.· South Korea’s higher base oils output in early Q2 2023 cushions slowdown in regional supply.· Rising supply coincides with lower diesel output as a share of total refined products output, amid firm base oils premium to diesel.· Those same price dynamics extend into June, incentivizing refiners to maintain firm base oils output and lower diesel output..Asia base oils – week of June 12: Demand outlook.Contact us for more information about the data for these stories
· China’s Shandong diesel premium to crude stays relatively low, deterring rise in output.· China’s diesel demand likely to remain muted as lower consumption in industrial sector counters seasonal pick-up in demand in agricultural sector.· India’s retail diesel premium to crude extends rise, encouraging domestic refiners to maintain high run-rates.· India’s refiners maintain firm base oils output levels in Q2 2023 as they keep refinery run rates at high levels.· Discounted feedstock costs continue to incentivize refiners in markets like India and China to boost output and re-sell products like base oils at competitive levels at or below market prices.· The moves add to base oils supply in both markets, cutting import requirements and increasing prospect of more exports.· Most plant maintenance work in northeast and southeast Asia set to be completed by end-Q2 2023.· Indonesia’s April Group III base oils shipments rebound from 28-month low in March.· Supplies add to signs of more healthy global availability of Group III base oils in Q2 2023 despite maintenance work affecting two major plants.· Thailand’s April base oils supply lags demand for fourth month amid signs that refiners seek to maintain low stocks..· Strategy adds volumes to well-supplied markets at a time when outright prices face pressure but price premium to diesel stays high.· Strategy of lower stocks cuts refiners’ exposure to lower prices.· Conversely, refiners often seek to hold back supplies when prices are trending up in order to lock in higher prices.· Asia’s base oils supply falls sharply in April from March, coincides with rising base oils premium to crude and diesel..· Scheduled plant maintenance work likely keeps supply at lower levels through Q2 2023.· South Korea’s April base oils’ share of total refinery output rises to 10-month high against backdrop of strong margins.· South Korea’s higher base oils output in early Q2 2023 cushions slowdown in regional supply.· Rising supply coincides with lower diesel output as a share of total refined products output, amid firm base oils premium to diesel.· Those same price dynamics extend into June, incentivizing refiners to maintain firm base oils output and lower diesel output..Asia base oils – week of June 12: Demand outlook.Contact us for more information about the data for these stories
