China’s base oils imports rose in March to the second-highest level in a year on the back of a surge in shipments from countries that produce Group III base oils.Total base oils imports of 194,000 tonnes in March rose from average volumes of 153,000 tonnes/month in the first two months of the year, government data showed.Even with the rise in shipments, total imports of 499,700 tonnes in the first quarter of the year were down 10% from 555,500 tonnes during the same period last year.The imports were the lowest volume for the first quarter of the year in at least eight years.Total imports picked up in March at a time of year when China’s lube consumption typically gets a seasonal boost.Imports rose on the back of a surge in shipments from South Korea and the Middle East especially.The countries are all key producers of Group III base oils.Imports from those markets rose even as China’s domestic Group III base oils output climbed to a five-month high in March.The rise in shipments suggested that China’s domestic Group III supply remained insufficient to meet the country’s demand even with the rise in domestic output.That output was set to fall this month because of the shutdown of a plant for scheduled maintenance work from late-April.A surge in shipments from markets like Qatar in March contrasted with steady-to-lower imports from countries that produce Group I or Group II base oils such as Singapore and Taiwan.Signs of more muted imports of Group II base oils coincided with rising domestic output of the product and an arbitrage to China that was increasingly hard to work.Imports also stayed low from countries that are regular suppliers of Group I base oils such as Thailand and Japan.Imports stayed low even with China’s domestic brightstock prices maintaining a steep premium to FOB Asia cargo prices.The wide premium sustained the feasibility of moving more arbitrage shipments to China.The lower import volumes also coincided with the start of maintenance work in March on a major Group I base oils unit in China, cutting domestic supply.The slowdown instead reflected more the tight availability of Group I base oils in the Asia-Pacific region..S Korea’s March base oils exports rise .China’s March base oils output rises.Taiwan’s March base oils exports rise
China’s base oils imports rose in March to the second-highest level in a year on the back of a surge in shipments from countries that produce Group III base oils.Total base oils imports of 194,000 tonnes in March rose from average volumes of 153,000 tonnes/month in the first two months of the year, government data showed.Even with the rise in shipments, total imports of 499,700 tonnes in the first quarter of the year were down 10% from 555,500 tonnes during the same period last year.The imports were the lowest volume for the first quarter of the year in at least eight years.Total imports picked up in March at a time of year when China’s lube consumption typically gets a seasonal boost.Imports rose on the back of a surge in shipments from South Korea and the Middle East especially.The countries are all key producers of Group III base oils.Imports from those markets rose even as China’s domestic Group III base oils output climbed to a five-month high in March.The rise in shipments suggested that China’s domestic Group III supply remained insufficient to meet the country’s demand even with the rise in domestic output.That output was set to fall this month because of the shutdown of a plant for scheduled maintenance work from late-April.A surge in shipments from markets like Qatar in March contrasted with steady-to-lower imports from countries that produce Group I or Group II base oils such as Singapore and Taiwan.Signs of more muted imports of Group II base oils coincided with rising domestic output of the product and an arbitrage to China that was increasingly hard to work.Imports also stayed low from countries that are regular suppliers of Group I base oils such as Thailand and Japan.Imports stayed low even with China’s domestic brightstock prices maintaining a steep premium to FOB Asia cargo prices.The wide premium sustained the feasibility of moving more arbitrage shipments to China.The lower import volumes also coincided with the start of maintenance work in March on a major Group I base oils unit in China, cutting domestic supply.The slowdown instead reflected more the tight availability of Group I base oils in the Asia-Pacific region..S Korea’s March base oils exports rise .China’s March base oils output rises.Taiwan’s March base oils exports rise
