China’s base oils imports fell to a one-year low in August, adding to signs of domestic demand staying weaker for longer.Base oils imports of 102,270t in August fell from just over 104,000t the previous month, government data showed.Imports rose by 10pc and for a sixth month from year-earlier levels, when prolonged lockdowns in China slashed base oils demand.Even with that recovery, total imports of 1.24mn t in the first eight months of the year remained below year-earlier levels of 1.29mn t.Muted domestic base oils output and blenders’ low stocks had raised the prospect of a pick-up in imports in preparation for a seasonal rise in lube consumption at the end of the third quarter.China’s lower base oils imports in August suggested blenders preferred to hold off any such moves amid concern about a weaker-than-expected seasonal rise in demand.The lower imports also coincided with an increasingly squeezed price spread between fob Asia and domestic Chinese base oils prices, especially for Group II base oils, ICIS data showed.The narrow spread made the arbitrage hard to work and incentivized Asia’s refiners to redirect supplies to other markets instead..Taiwan’s Aug base oils exports rebound
China’s base oils imports fell to a one-year low in August, adding to signs of domestic demand staying weaker for longer.Base oils imports of 102,270t in August fell from just over 104,000t the previous month, government data showed.Imports rose by 10pc and for a sixth month from year-earlier levels, when prolonged lockdowns in China slashed base oils demand.Even with that recovery, total imports of 1.24mn t in the first eight months of the year remained below year-earlier levels of 1.29mn t.Muted domestic base oils output and blenders’ low stocks had raised the prospect of a pick-up in imports in preparation for a seasonal rise in lube consumption at the end of the third quarter.China’s lower base oils imports in August suggested blenders preferred to hold off any such moves amid concern about a weaker-than-expected seasonal rise in demand.The lower imports also coincided with an increasingly squeezed price spread between fob Asia and domestic Chinese base oils prices, especially for Group II base oils, ICIS data showed.The narrow spread made the arbitrage hard to work and incentivized Asia’s refiners to redirect supplies to other markets instead..Taiwan’s Aug base oils exports rebound