China’s base oils imports unusually fell in September from the month of August amid signs of slowing demand growth and rising consumption of supplies from the country’s domestic refiners.Base oils imports of 104,000 tonnes in September fell from more than 130,000 tonnes in August and by 36% from year-earlier levels, government data showed.The drop in import volumes from August was unusual.China's base oils imports usually rise in September from the month of August as distributors and blenders replenish stocks ahead of a seasonal pick-up in demand at the end of the third quarter.Before this year, imports rose in September from the month of August every year since at least 2017.Rising domestic supply likely curbed requirements from overseas markets.Lower imports contrasted with a rebound in China’s domestic base oils output to an eight-month high in September.Output rose on the back of a pick-up production of Group II base oils.China’s base oils supply, or output and net imports combined, duly climbed to 554,400 tonnes in September.But the pace of the 3% rise in supply from year-earlier levels was the slowest in four months. The volume was also up only slightly from 551,500 tonnes in August.The steadier supply pointed to a sharp slowdown in the pace of demand growth at a time of year when consumption usually rises strongly.It also highlighted domestic buyers’ rising consumption of supplies from domestic refiners rather than from overseas producers when domestic volumes are available. Supplies of Group II base oils are likely to be more readily available over the coming months following the restart of several domestic base oils units in August and September.Waning demand for overseas supplies in turn curbed the need to keep open the arbitrage to move more shipments to China.China’s domestic Group II base oils price premium to FOB NE Asia prices duly began to narrow from the beginning of this month after rising steadily throughout most of the third quarter of the year..China’s Sept base oils output rises.South Korea’s Sept base oils exports fall.Taiwan’s Sept base oils exports fall
China’s base oils imports unusually fell in September from the month of August amid signs of slowing demand growth and rising consumption of supplies from the country’s domestic refiners.Base oils imports of 104,000 tonnes in September fell from more than 130,000 tonnes in August and by 36% from year-earlier levels, government data showed.The drop in import volumes from August was unusual.China's base oils imports usually rise in September from the month of August as distributors and blenders replenish stocks ahead of a seasonal pick-up in demand at the end of the third quarter.Before this year, imports rose in September from the month of August every year since at least 2017.Rising domestic supply likely curbed requirements from overseas markets.Lower imports contrasted with a rebound in China’s domestic base oils output to an eight-month high in September.Output rose on the back of a pick-up production of Group II base oils.China’s base oils supply, or output and net imports combined, duly climbed to 554,400 tonnes in September.But the pace of the 3% rise in supply from year-earlier levels was the slowest in four months. The volume was also up only slightly from 551,500 tonnes in August.The steadier supply pointed to a sharp slowdown in the pace of demand growth at a time of year when consumption usually rises strongly.It also highlighted domestic buyers’ rising consumption of supplies from domestic refiners rather than from overseas producers when domestic volumes are available. Supplies of Group II base oils are likely to be more readily available over the coming months following the restart of several domestic base oils units in August and September.Waning demand for overseas supplies in turn curbed the need to keep open the arbitrage to move more shipments to China.China’s domestic Group II base oils price premium to FOB NE Asia prices duly began to narrow from the beginning of this month after rising steadily throughout most of the third quarter of the year..China’s Sept base oils output rises.South Korea’s Sept base oils exports fall.Taiwan’s Sept base oils exports fall