China’s base oils output held firm in April even amidst a heavy round of plant maintenance work.Group II base oils output rose to a six-month high as some refinery production switched away from Group III base oils.Group I base oils output fell, reflecting the lack of any additional latent capacity to tap during periods of plant maintenance work.China’s total paraffinic base oils output of around 465,000 tonnes in April fell from close to 480,000 tonnes the previous month, government data showed.Output still rose by 6% from year-earlier levels and held well above typical levels of around 450,000 tonnes/month over the past year.Total output fell in April because of a dip in Group I and Group III base oils production.Group I base oils output of less than 55,000 tonnes was the lowest in more than three years.Lower output coincided with maintenance work on a key Group I base oils plant for two months from second-half March.Group I plant closures in China left the country with scant additional capacity to tap during such periods of plant maintenance work.China’s domestic base oils prices reflected the tighter Group I availability.Domestic Group I prices strengthened relative to Group II base oils in March and April, especially for heavy grades.China’s domestic Group III base oils prices by contrast weakened relative to Group II prices in April to the lowest level in more than three years.The shrinking Group III premium boosted the incentive for Group III refiners to adjust output to produce more Group II base oils instead.China’s Group II base oils output of more than 384,000 tonnes in April duly rose from less than 368,000 tonnes in March and by 10% from year-earlier levels..Output rose despite maintenance work involving several Group II base oils units in the month of April.The dynamic contrasted starkly with the drop in Group I output during periods of maintenance work.Moves to boost Group II production in turn cut Group III base oils output in April to a three-month low of less than 30,000 tonnes.The volume still rose by 21% and for a twenty-first month from year-earlier levels..China’s March base oils demand rises.Singapore’s March base oils exports rise
China’s base oils output held firm in April even amidst a heavy round of plant maintenance work.Group II base oils output rose to a six-month high as some refinery production switched away from Group III base oils.Group I base oils output fell, reflecting the lack of any additional latent capacity to tap during periods of plant maintenance work.China’s total paraffinic base oils output of around 465,000 tonnes in April fell from close to 480,000 tonnes the previous month, government data showed.Output still rose by 6% from year-earlier levels and held well above typical levels of around 450,000 tonnes/month over the past year.Total output fell in April because of a dip in Group I and Group III base oils production.Group I base oils output of less than 55,000 tonnes was the lowest in more than three years.Lower output coincided with maintenance work on a key Group I base oils plant for two months from second-half March.Group I plant closures in China left the country with scant additional capacity to tap during such periods of plant maintenance work.China’s domestic base oils prices reflected the tighter Group I availability.Domestic Group I prices strengthened relative to Group II base oils in March and April, especially for heavy grades.China’s domestic Group III base oils prices by contrast weakened relative to Group II prices in April to the lowest level in more than three years.The shrinking Group III premium boosted the incentive for Group III refiners to adjust output to produce more Group II base oils instead.China’s Group II base oils output of more than 384,000 tonnes in April duly rose from less than 368,000 tonnes in March and by 10% from year-earlier levels..Output rose despite maintenance work involving several Group II base oils units in the month of April.The dynamic contrasted starkly with the drop in Group I output during periods of maintenance work.Moves to boost Group II production in turn cut Group III base oils output in April to a three-month low of less than 30,000 tonnes.The volume still rose by 21% and for a twenty-first month from year-earlier levels..China’s March base oils demand rises.Singapore’s March base oils exports rise
