China’s base oils demand rose in April from year-earlier levels for the first time in six months.Demand rose in the same month when the imposition of steep US tariffs on imports from China added to pressure on the country’s economic growth.It also coincided with relatively firm industrial production and exports in April and added to signs of a more muted-than-expected immediate impact of the trade war between China and the US.Total base oils demand, or domestic output and net imports combined, came to close to 592,000 tonnes in April, government and industry data showed..The volume rose by 10% from year-earlier levels to the second-highest level in six months.The highest level during that period was in March, when demand usually gets a seasonal boost ahead of the spring oil-change season.China’s base oils imports similarly rose in April from year-earlier levels for the second time in three months and fell less than usual from the month of March.Higher demand in April coincided with domestic base oils prices in China that also pointed to relatively firm supply-demand fundamentals.China’s domestic Group II base oils price-premium to diesel began to rise from early-March, before extending that rise so far in the second quarter of the year.The rising price premium incentivized domestic refiners to maintain or raise base oils output.Firmer demand also coincided with a steady rise in China’s domestic N150 price-premium to FOB Asia cargo prices to the highest since last October.The widening premium made the arbitrage more feasible, raising the prospect of attracting additional supplies from Asia.Demand for overseas supplies could have got a boost from plant maintenance work in China from the end of the first quarter of the year.The expected completion of most of that maintenance work in May could duly trim that buying interest for overseas supplies..China’s April base oils output holds firm.Asia’s March lube demand falls
