China’s base oils imports rose to a three-month high in December amid a pick-up in shipments of Group III base oils.Total imports of more than 152,000t in December rose from around 138,000t in November and by 35pc from year-earlier levels.Even with the pick-up in supplies, China’s total base oils imports of 1.75mn t in 2023 fell by 2pc from 1.79mn t the previous year. The volume was the lowest in at least seven years.Imports got a boost in December from a rise in Group III base oils shipments from the Mideast Gulf to a seven-month high.Imports from Singapore and from Taiwan especially stayed lower, curbing supplies of Group II base oils from those sources.China’s domestic Group II light-grade base oils price for imported supplies rose to a steep premium to prices for domestic supplies in early December, ICIS data showed.The steep premium reflected the tighter availability of supplies from Taiwan especially.The Group II premium to prices for domestic supplies then fell sharply through the rest of December and in January amid a strong pick-up in shipments from Taiwan in recent weeks.Supplies from Singapore to China also showed signs of rising strongly in January.China’s domestic Group II light-grade premium to fob Asia Group II prices extended its rise through December and January even with signs of a recovery in supplies from Taiwan and Singapore this month.The rising premium to fob Asia prices pointed to domestic supply-demand fundamentals that were sufficiently strong to attract more supplies from overseas markets..China’s December base oils output rises
China’s base oils imports rose to a three-month high in December amid a pick-up in shipments of Group III base oils.Total imports of more than 152,000t in December rose from around 138,000t in November and by 35pc from year-earlier levels.Even with the pick-up in supplies, China’s total base oils imports of 1.75mn t in 2023 fell by 2pc from 1.79mn t the previous year. The volume was the lowest in at least seven years.Imports got a boost in December from a rise in Group III base oils shipments from the Mideast Gulf to a seven-month high.Imports from Singapore and from Taiwan especially stayed lower, curbing supplies of Group II base oils from those sources.China’s domestic Group II light-grade base oils price for imported supplies rose to a steep premium to prices for domestic supplies in early December, ICIS data showed.The steep premium reflected the tighter availability of supplies from Taiwan especially.The Group II premium to prices for domestic supplies then fell sharply through the rest of December and in January amid a strong pick-up in shipments from Taiwan in recent weeks.Supplies from Singapore to China also showed signs of rising strongly in January.China’s domestic Group II light-grade premium to fob Asia Group II prices extended its rise through December and January even with signs of a recovery in supplies from Taiwan and Singapore this month.The rising premium to fob Asia prices pointed to domestic supply-demand fundamentals that were sufficiently strong to attract more supplies from overseas markets..China’s December base oils output rises
