China’s base oils demand surged to a one-year high in March as stock-building ahead of plant maintenance work added to a seasonal pick-up in requirements.Total demand, or output and net imports combined, rose to more than 636,000 tonnes in March, government and industry data showed..The volume rose from less than 523,000 tonnes in February and exceeded the 600,000 tonnes/month level for the first time since March 2024.Total demand of 1.71 million tonnes in the first quarter of the year still fell by 7% from 1.83 million tonnes during the same period last year.The year-on-year contraction was the first in two years and pointed to a more muted seasonal pick-up in consumption.Demand in March likely got an additional boost from stock-building ahead of plant maintenance work involving several key base oils units in China.Requirements for additional supplies supported a surge in the country’s base oils imports in March to a one-year high.The rise in shipments boosted imports’ share of China’s base oils supply to 27% of the total volume in March.The share rose from around 20% of supply over most of the previous eleven months to the highest in a year.The lower share of imports in the intervening months suggested China’s own output and the specifications of those supplies were sufficient to meet a growing share of its requirements.The higher share of imports in March pointed to moves to top up China’s own supply.A round of scheduled plant maintenance work from March to May and the prospect of lower domestic output during that period in turn boosted the requirement for top-up volumes.The dynamic suggested that preparation for plant maintenance work rather than a seasonal uptick in consumption was the key driver behind the pick-up in demand.The arbitrage to move additional shipments to China also remained hard to work for most base oils grades in March and April.The price trends pointed to muted end-user demand for additional spot volumes. .China’s March base oils output rises.S Korea’s March base oils exports fall
China’s base oils demand surged to a one-year high in March as stock-building ahead of plant maintenance work added to a seasonal pick-up in requirements.Total demand, or output and net imports combined, rose to more than 636,000 tonnes in March, government and industry data showed..The volume rose from less than 523,000 tonnes in February and exceeded the 600,000 tonnes/month level for the first time since March 2024.Total demand of 1.71 million tonnes in the first quarter of the year still fell by 7% from 1.83 million tonnes during the same period last year.The year-on-year contraction was the first in two years and pointed to a more muted seasonal pick-up in consumption.Demand in March likely got an additional boost from stock-building ahead of plant maintenance work involving several key base oils units in China.Requirements for additional supplies supported a surge in the country’s base oils imports in March to a one-year high.The rise in shipments boosted imports’ share of China’s base oils supply to 27% of the total volume in March.The share rose from around 20% of supply over most of the previous eleven months to the highest in a year.The lower share of imports in the intervening months suggested China’s own output and the specifications of those supplies were sufficient to meet a growing share of its requirements.The higher share of imports in March pointed to moves to top up China’s own supply.A round of scheduled plant maintenance work from March to May and the prospect of lower domestic output during that period in turn boosted the requirement for top-up volumes.The dynamic suggested that preparation for plant maintenance work rather than a seasonal uptick in consumption was the key driver behind the pick-up in demand.The arbitrage to move additional shipments to China also remained hard to work for most base oils grades in March and April.The price trends pointed to muted end-user demand for additional spot volumes. .China’s March base oils output rises.S Korea’s March base oils exports fall
