China’s base oils output rose to a two-year high in January amid signs of a pick-up in demand ahead of the lunar new year holidays.Higher base oils output coincided with a firm flow of shipments to China in January from key suppliers like Taiwan and Singapore.China’s domestic base oils prices extended their rise on an outright basis and relative to domestic diesel prices in January, even with the rise in supply.Rising supply and higher prices pointed to stronger demand.Buying interest in China typically rises ahead of the lunar new year holidays as distributors and blenders seek to replenish stocks in anticipation of a strong rise in lube demand after the holidays.The trend showed signs of repeating itself this year.Rising supply so far this year increased the importance of an extension of this year’s pick-up in base oils demand to avoid a build-up of surplus volumes.A further rise in demand in turn depended on the strength and sustainability of the expected rise in China’s lube demand after the lunar new year holidays.Output of Group I, Group II and Group III base oils rose to close to 470,000t in January, Oilchem China data showed.The volume rose from less than 450,000t the previous month to the highest since December 2021.Output then slumped from the start of 2022 as the imposition of pandemic-related lockdowns slashed economic activity and lube demand.China’s Group II base oils output rose in January from December and from year-earlier levels but remained lower than in January 2022.Group I base oils output was more than 30pc higher than production levels in January 2022.Group III base oils output of close to 20,000t in January contrasted with a pause in production during the first few months of 2022 and with much lower levels even in 2021..China’s December base oils imports rise.China’s December base oils output rises
China’s base oils output rose to a two-year high in January amid signs of a pick-up in demand ahead of the lunar new year holidays.Higher base oils output coincided with a firm flow of shipments to China in January from key suppliers like Taiwan and Singapore.China’s domestic base oils prices extended their rise on an outright basis and relative to domestic diesel prices in January, even with the rise in supply.Rising supply and higher prices pointed to stronger demand.Buying interest in China typically rises ahead of the lunar new year holidays as distributors and blenders seek to replenish stocks in anticipation of a strong rise in lube demand after the holidays.The trend showed signs of repeating itself this year.Rising supply so far this year increased the importance of an extension of this year’s pick-up in base oils demand to avoid a build-up of surplus volumes.A further rise in demand in turn depended on the strength and sustainability of the expected rise in China’s lube demand after the lunar new year holidays.Output of Group I, Group II and Group III base oils rose to close to 470,000t in January, Oilchem China data showed.The volume rose from less than 450,000t the previous month to the highest since December 2021.Output then slumped from the start of 2022 as the imposition of pandemic-related lockdowns slashed economic activity and lube demand.China’s Group II base oils output rose in January from December and from year-earlier levels but remained lower than in January 2022.Group I base oils output was more than 30pc higher than production levels in January 2022.Group III base oils output of close to 20,000t in January contrasted with a pause in production during the first few months of 2022 and with much lower levels even in 2021..China’s December base oils imports rise.China’s December base oils output rises
