China’s apparent base oils demand fell in February for a fourth month, magnifying a dip in the country’s requirements for supplies from overseas markets.The country’s increasing self-sufficiency with base oils supply already slashed its need for shipments from overseas markets. Falling demand compounded that dynamic and put pressure on the country’s own base oils production.Apparent base oils demand, or domestic output and net imports combined, fell to less than 525,000 tonnes in February, government and industry data showed..The volume fell by 3% from year-earlier levels to a seven-month low.Total demand of 1.07 million tonnes in the first two months of the year fell at a steeper 10% pace, from close to 1.20 million tonnes during the same period last year.The two months combined smoothed out the seasonal impact of the timing of the Lunar New Year holidays this and last year.China’s shrinking demand added to the attraction for blenders to maintain low stocks and to procure smaller volumes more frequently.The strategy boosted the attraction of procuring the supplies from domestic producers rather than from overseas markets.Demand fell mostly because of the 28% fall in imports during the first two months of the year, reflecting that dynamic.The contraction outpaced the 3% drop in the country’s domestic base oils output during the same period.Total imports of 220,600 tonnes in the first two months of the year fell from more than 305,000 tonnes during the same period the previous year to the lowest in at least nine years.The slump in imports cut their share of China’s apparent demand to around 21% of the total in the first two months of the year.The share was down from more than 27% in the first quarter of 2024 and from more than 37% in the first quarter of 2023.China’s domestic Group II light-grade base oils prices stayed weak relative to Shandong diesel prices in the first two months of the year even with the slump in imports.The weak margins highlighted the pressure that the country’s domestic refiners also faced in response to waning demand..China’s February base oils output mixed.Taiwan's Feb base oils exports rise.S Korea’s Feb base oils exports rebound
