China’s March base oil imports rise

China’s base oil imports rose in March on the back of a jump in shipments from Singapore.

But the volume remained lower than usual for the time of year, ahead of the peak spring oil-change season.

Imports of 217,310t in March rose from 205,420t the previous month, government data showed.

Imports of 661,620t in the first quarter rose by 46pc from just over 450,000t in the fourth quarter of last year. But they were down 1pc compared with the same period last year.

Imports in the first three months of 2021 remained higher than this year even after blenders began building stocks in late 2020.

Blenders and distributors mostly held off such moves during the fourth quarter of last year as they waited for a sharp drop in prices to bottom out.

The subsequent pick-up in demand so far this year has been muted.

Buyers remained wary about building stocks, even as regional base oil prices surged and supply tightened. Uncertainty about the demand outlook amid more widespread lockdowns in China added to a preference to procure supplies on a need-to basis.

Buyers have instead moved to cover more of their requirements with base oils from domestic producers, whose prices were increasingly competitive compared with imported supplies.