China’s base oils demand fell to a ten-month low in October as blenders sought to maintain low stocks amid uncertainty about the outlook.Notional demand, or base oils production and net imports combined, fell to around 427,000t in October, government and industry data showed.Demand fell from more than 535,000t the previous month and from average levels of more than 495,000 t/month so far this year.Demand slowed at a time of year when lube consumption typically gets a seasonal boost.China’s domestic Group II prices rose strongly versus domestic diesel prices in October, pointing to a pick-up in consumption.But China’s Group II prices stayed unusually weak versus fob Asia cargo prices, ICIS data showed. The low prices kept shut the arbitrage to move more supplies to China.The mixed price signals pointed to some pick-up in demand. But supply was more than sufficient to meet requirements and distributors and blenders continued to prioritize maintaining low stocks.China’s total demand of 4.89mn t in the first ten months of the year remained down 3pc from 5.05mn t during the same period last year..China’s Oct base oils imports fall
China’s base oils demand fell to a ten-month low in October as blenders sought to maintain low stocks amid uncertainty about the outlook.Notional demand, or base oils production and net imports combined, fell to around 427,000t in October, government and industry data showed.Demand fell from more than 535,000t the previous month and from average levels of more than 495,000 t/month so far this year.Demand slowed at a time of year when lube consumption typically gets a seasonal boost.China’s domestic Group II prices rose strongly versus domestic diesel prices in October, pointing to a pick-up in consumption.But China’s Group II prices stayed unusually weak versus fob Asia cargo prices, ICIS data showed. The low prices kept shut the arbitrage to move more supplies to China.The mixed price signals pointed to some pick-up in demand. But supply was more than sufficient to meet requirements and distributors and blenders continued to prioritize maintaining low stocks.China’s total demand of 4.89mn t in the first ten months of the year remained down 3pc from 5.05mn t during the same period last year..China’s Oct base oils imports fall