China’s base oils output extended its fall to a nine-month low in July amid a further dip in Group II production.The drop in supply helped to balance out the impact of a seasonal slowdown in China’s demand during the summer months.The country’s total paraffinic base oils output of close to 415,000 tonnes in July was the lowest since last October, OilChem China data showed.Output fell from more than 425,000 tonnes the previous month and from close to 440,000 tonnes in May.The sustained slowdown since March coincided with a protracted round of plant maintenance work that impacted Group I, Group II and Group III base oils plants over the following months.Some Group II plant maintenance work extended through the month of July.The lower output showed signs of cushioning the impact of a seasonal slowdown in domestic demand during the third quarter of the year, leaving fundamentals relatively balanced.China’s domestic Group II base oils prices held firm versus Shandong diesel prices and trended higher versus FOB NE Asia base oil prices in June and July.The steady-to-firm prices contrasted with a drop in the domestic price premium to diesel prices and to regional base oil prices during the third quarter of last year.The different price trends pointed to more balanced supply-demand fundamentals during this year’s summer months.The widening domestic price premium to regional base oils prices also boosted the feasibility of securing arbitrage shipments from suppliers in the Asia-Pacific region.Any such moves covered for tighter domestic supply and tapped signs of more plentiful availability from Asia-Pacific refiners.China’s Group III base oils output was the outlier, with production extending its rise in July to a multi-year high.Any extension of that trend could curb the country’s requirements for Group III supplies from overseas sources like South Korea and the Middle East..China’s June base oils imports rise.China’s June base oils output falls
China’s base oils output extended its fall to a nine-month low in July amid a further dip in Group II production.The drop in supply helped to balance out the impact of a seasonal slowdown in China’s demand during the summer months.The country’s total paraffinic base oils output of close to 415,000 tonnes in July was the lowest since last October, OilChem China data showed.Output fell from more than 425,000 tonnes the previous month and from close to 440,000 tonnes in May.The sustained slowdown since March coincided with a protracted round of plant maintenance work that impacted Group I, Group II and Group III base oils plants over the following months.Some Group II plant maintenance work extended through the month of July.The lower output showed signs of cushioning the impact of a seasonal slowdown in domestic demand during the third quarter of the year, leaving fundamentals relatively balanced.China’s domestic Group II base oils prices held firm versus Shandong diesel prices and trended higher versus FOB NE Asia base oil prices in June and July.The steady-to-firm prices contrasted with a drop in the domestic price premium to diesel prices and to regional base oil prices during the third quarter of last year.The different price trends pointed to more balanced supply-demand fundamentals during this year’s summer months.The widening domestic price premium to regional base oils prices also boosted the feasibility of securing arbitrage shipments from suppliers in the Asia-Pacific region.Any such moves covered for tighter domestic supply and tapped signs of more plentiful availability from Asia-Pacific refiners.China’s Group III base oils output was the outlier, with production extending its rise in July to a multi-year high.Any extension of that trend could curb the country’s requirements for Group III supplies from overseas sources like South Korea and the Middle East..China’s June base oils imports rise.China’s June base oils output falls
