Base oils exports from Asia’s largest suppliers to southeast Asia fell to a seven-month low in September, highlighting the region’s tighter availability at the end of the third quarter of the year.Base oils exports to southeast Asia from South Korea, China, Taiwan and Singapore combined fell to 142,000 tonnes in September, government data showed.The total volume fell from around 165,000 tonnes in August and from a more-than-six year high of more than 210,000 tonnes in July.China was the only market whose exports to the region rose in September.South Korea’s exports to southeast Asia fell to a twenty-one-month low as the start of plant-maintenance in the country slashed its supply.Singapore’s base oils exports to southeast Asia fell to a five-month low in September as more supplies moved instead to India and China.The Asia refiners’ higher shipments to southeast Asia in July enabled the region’s blenders to build stocks ahead of a seasonal pick-up in consumption at the end of the third quarter.The slide in base oils shipments in September likely prompted blenders to tap those stocks to cover requirements.The scenario would have left blenders with depleted inventories heading into the fourth quarter of the year.Recent crude price volatility in October boosted the attraction for blenders to replenish stocks with smaller volumes to cover immediate requirements only.The moves could balance out the prospect of Asia’s base oils supply staying lower than usual in the month of October.Blenders’ lower stocks could then cushion the impact of a seasonal dip in lube consumption at year-end as they continued to top up supplies with smaller volumes. .South Korea’s Sept base oils exports fall.Singapore’s Sept base oils exports rise.Taiwan’s Sept base oils exports fall.Base Oil News stories and analysis also available on ICIS platform
