China’s base oils imports fell to a nine-month low in July, coinciding with a dip in the country’s base oils output and adding to a sharp slide in domestic supply.Total imports of 89,500 tonnes in July fell from more than 153,000 tonnes the previous month to the lowest since last October, government data showed.China’s base oils imports typically fall in the month of July, when domestic demand face a seasonal slowdown.The volume still fell by 14% in July and for a sixth straight month from year-earlier levels.The slowdown coincided with a pick-up in exports, as well as a drop in China’s base oils output to a nine-month low.The dynamic cut China’s total base oils supply, or output and net imports combined, to around 492,000 tonnes in July, down from more than 575,000 tonnes the previous month.Supply still rose by 11% in July and for a sixteenth month from year-earlier levels.Higher supply this year coincided with steady and firm base oils values relative to domestic diesel prices.Domestic prices also extended their gradual recovery relative to FOB Asia base oils prices.Lower supply in the third quarter of 2023 by contrast coincided with a slump in base oils values relative to domestic diesel prices and relative to FOB Asia prices.The different price trends pointed to more balanced supply-demand fundamentals in the third quarter of this year compared with the same period last year even with the higher supply volumes this year.The more balanced fundamentals in turn raised the prospect of a stronger seasonal pick-up in demand at the end of the third quarter of the year, and a subsequent rise in supplies to meet the pick-up in demand.China’s domestic base oils output covered a growing share of the country’s supply so far this year.A continuation of that trend would limit the size of any pick-up in the country’s base oils imports to meet a seasonal rise in demand at the end of the third quarter..China’s July base oils output falls.S Korea July base oils exports stay lower.Taiwan’s July base oils exports rise
China’s base oils imports fell to a nine-month low in July, coinciding with a dip in the country’s base oils output and adding to a sharp slide in domestic supply.Total imports of 89,500 tonnes in July fell from more than 153,000 tonnes the previous month to the lowest since last October, government data showed.China’s base oils imports typically fall in the month of July, when domestic demand face a seasonal slowdown.The volume still fell by 14% in July and for a sixth straight month from year-earlier levels.The slowdown coincided with a pick-up in exports, as well as a drop in China’s base oils output to a nine-month low.The dynamic cut China’s total base oils supply, or output and net imports combined, to around 492,000 tonnes in July, down from more than 575,000 tonnes the previous month.Supply still rose by 11% in July and for a sixteenth month from year-earlier levels.Higher supply this year coincided with steady and firm base oils values relative to domestic diesel prices.Domestic prices also extended their gradual recovery relative to FOB Asia base oils prices.Lower supply in the third quarter of 2023 by contrast coincided with a slump in base oils values relative to domestic diesel prices and relative to FOB Asia prices.The different price trends pointed to more balanced supply-demand fundamentals in the third quarter of this year compared with the same period last year even with the higher supply volumes this year.The more balanced fundamentals in turn raised the prospect of a stronger seasonal pick-up in demand at the end of the third quarter of the year, and a subsequent rise in supplies to meet the pick-up in demand.China’s domestic base oils output covered a growing share of the country’s supply so far this year.A continuation of that trend would limit the size of any pick-up in the country’s base oils imports to meet a seasonal rise in demand at the end of the third quarter..China’s July base oils output falls.S Korea July base oils exports stay lower.Taiwan’s July base oils exports rise
