China’s base oils output fell to a seven-month low in June as Group II plant maintenance work cut production of the premium-grade product.The drop in Group II output outweighed a rise in Group I and Group III base oils production.China’s domestic Group II base oils prices held steady versus domestic diesel prices and rose from low levels versus FOB NE Asia cargo prices during the month of June.The firmer prices reflected the tighter domestic availability.The arbitrage to move more shipments from Asia refiners to China stayed hard to work, but more feasible than in recent months.The dynamic suggested that domestic supply remained sufficient to cover most requirements, even with the drop in output.The prospect of Group II supply staying lower than usual in the month of July is likely to continue to balance out the impact of a seasonal slowdown in consumption.China’s total paraffinic base oils output fell to less than 430,000 tonnes in June, according to OilChem China data.Output fell by 3% from less than 440,000 tonnes in May even as Group II base oils production slid by a steeper 12% to the lowest since last November.The drop in Group II output coincided with maintenance work at several base oils units last month.Group I base oils output by contrast rose to a four-month high in June following the completion of plant maintenance work in May.The rise in output coincided with a recovery in domestic Group II heavy-grade prices to a premium to Group I prices from the beginning of June.Group II prices had slid to an unusual discount to Group I heavy neutrals during the previous two months.Group III base oils output rebounded to a multi-year high in June after dipping to a five-month low in May.The dip and then recovery in output followed the shutdown of a key domestic Group III base oils unit throughout most of the month of May..China’s May base oils imports fall.S Korea’s May base oils exports rise.Japan’s May base oils supply lags demand
China’s base oils output fell to a seven-month low in June as Group II plant maintenance work cut production of the premium-grade product.The drop in Group II output outweighed a rise in Group I and Group III base oils production.China’s domestic Group II base oils prices held steady versus domestic diesel prices and rose from low levels versus FOB NE Asia cargo prices during the month of June.The firmer prices reflected the tighter domestic availability.The arbitrage to move more shipments from Asia refiners to China stayed hard to work, but more feasible than in recent months.The dynamic suggested that domestic supply remained sufficient to cover most requirements, even with the drop in output.The prospect of Group II supply staying lower than usual in the month of July is likely to continue to balance out the impact of a seasonal slowdown in consumption.China’s total paraffinic base oils output fell to less than 430,000 tonnes in June, according to OilChem China data.Output fell by 3% from less than 440,000 tonnes in May even as Group II base oils production slid by a steeper 12% to the lowest since last November.The drop in Group II output coincided with maintenance work at several base oils units last month.Group I base oils output by contrast rose to a four-month high in June following the completion of plant maintenance work in May.The rise in output coincided with a recovery in domestic Group II heavy-grade prices to a premium to Group I prices from the beginning of June.Group II prices had slid to an unusual discount to Group I heavy neutrals during the previous two months.Group III base oils output rebounded to a multi-year high in June after dipping to a five-month low in May.The dip and then recovery in output followed the shutdown of a key domestic Group III base oils unit throughout most of the month of May..China’s May base oils imports fall.S Korea’s May base oils exports rise.Japan’s May base oils supply lags demand