Asia’s base oils exports rose to a three-month high in January on the back of a rebound in shipments from Taiwan and Singapore.The recovery in exports showed signs of reversing in February amid a fall in shipments from both of those markets.Exports from Taiwan and Singapore also remained lower than usual at the start of this month.Asia's total exports of around 670,000t in January rose from less than 620,000t the previous month and less than 570,000t in November, government data showed.The January volume was similar to year-earlier levels.The region’s base oils market avoided a major supply-build at the end of last year even with a drop in exports during the final months of the year.The slowdown in shipments reflected more a drop in regional base oils production than the impact of lower demand.Supply remained balanced to tight at the start of this year even with the pick-up in shipments.The arbitrage was increasingly hard to work to move base oils from Asia to outlets like the Americas and Europe, ICIS data showed.The less feasible arbitrage reflected the tighter supply.A large portion of the additional exports in January moved to China.The country’s demand revived as blenders sought to replenish depleted stocks of base oils of Taiwan origin especially before the lunar new year holidays in February.Southeast Asia was also a key outlet for a large volume of the supplies.Demand in southeast Asia held firm amid signs of an ongoing rise in regional consumption and as blenders sought to build stocks ahead of the peak season at the end of the first quarter.The rise in Asia’s total exports contrasted with a fall in shipments from several key Group I suppliers.Total exports of Group I base oils from Thailand, Japan and Indonesia combined fell to less than 40,000t in January.The volume fell from typical levels of more than 80,000 t/month over the past year to the lowest in more than eight years..Asia’s December base oils supply falls
Asia’s base oils exports rose to a three-month high in January on the back of a rebound in shipments from Taiwan and Singapore.The recovery in exports showed signs of reversing in February amid a fall in shipments from both of those markets.Exports from Taiwan and Singapore also remained lower than usual at the start of this month.Asia's total exports of around 670,000t in January rose from less than 620,000t the previous month and less than 570,000t in November, government data showed.The January volume was similar to year-earlier levels.The region’s base oils market avoided a major supply-build at the end of last year even with a drop in exports during the final months of the year.The slowdown in shipments reflected more a drop in regional base oils production than the impact of lower demand.Supply remained balanced to tight at the start of this year even with the pick-up in shipments.The arbitrage was increasingly hard to work to move base oils from Asia to outlets like the Americas and Europe, ICIS data showed.The less feasible arbitrage reflected the tighter supply.A large portion of the additional exports in January moved to China.The country’s demand revived as blenders sought to replenish depleted stocks of base oils of Taiwan origin especially before the lunar new year holidays in February.Southeast Asia was also a key outlet for a large volume of the supplies.Demand in southeast Asia held firm amid signs of an ongoing rise in regional consumption and as blenders sought to build stocks ahead of the peak season at the end of the first quarter.The rise in Asia’s total exports contrasted with a fall in shipments from several key Group I suppliers.Total exports of Group I base oils from Thailand, Japan and Indonesia combined fell to less than 40,000t in January.The volume fell from typical levels of more than 80,000 t/month over the past year to the lowest in more than eight years..Asia’s December base oils supply falls
