China’s base oils output rose to a five-month high in March, helping to cover a seasonal pick-up in demand.Output rose as Group III base oils production climbed to the highest in at least four years.The rise in output of the premium-grade base oils coincided with a fall in China’s domestic Group III price premium to prices in other markets.Rising domestic output and the lower Group III price premium boosted the incentive for overseas Group III refiners to move more shipments to other markets instead of China.The country’s total paraffinic base oils output of close to 480,000 tonnes in March rose from less than 430,000 tonnes the previous month, OilChem China data showed.Output rose to the highest since last October amid a surge in Group III base oils production to close to 50,000 tonnes in March and more than 105,000 tonnes in the first three months of the year..The Group III volume was down from around 120,000 tonnes in the third and fourth quarters of last year.But it held above the 100,000 tonnes/quarter level for just the third time and was more than double the output volume in the first quarter of last year.The high volume highlighted the surge in China’s Group III base oils output since the start of the second half of last year and its subsequent slowdown in requirements for the supplies from overseas markets.The recent weakness of China’s domestic Group III prices relative to other regions cut further the attraction of moving more supplies to the country.The Group III base oils premium over FOB Asia cargo prices fell in March to the lowest in at least three years. The premium to Europe Group III prices is close to its lowest this year.Asia’s premium-grade base oils imports from the Middle East fell to unusually low levels in February for the second time in three months, partly reflecting China’s dwindling demand.China’s Group III prices also weakened relative to domestic Group II prices, with the premium slipping to its lowest since early-2022.Any extension of that trend could incentivize the country’s domestic blenders to procure more Group III base oils in place of Group II.Any such move would put more pressure on China’s Group II refiners and cut further the country’s requirements for Group II supplies from overseas markets..India’s March lube demand rises.China’s February base oils demand falls.Asia's Feb premium-grade base oils imports from Middle East fall
China’s base oils output rose to a five-month high in March, helping to cover a seasonal pick-up in demand.Output rose as Group III base oils production climbed to the highest in at least four years.The rise in output of the premium-grade base oils coincided with a fall in China’s domestic Group III price premium to prices in other markets.Rising domestic output and the lower Group III price premium boosted the incentive for overseas Group III refiners to move more shipments to other markets instead of China.The country’s total paraffinic base oils output of close to 480,000 tonnes in March rose from less than 430,000 tonnes the previous month, OilChem China data showed.Output rose to the highest since last October amid a surge in Group III base oils production to close to 50,000 tonnes in March and more than 105,000 tonnes in the first three months of the year..The Group III volume was down from around 120,000 tonnes in the third and fourth quarters of last year.But it held above the 100,000 tonnes/quarter level for just the third time and was more than double the output volume in the first quarter of last year.The high volume highlighted the surge in China’s Group III base oils output since the start of the second half of last year and its subsequent slowdown in requirements for the supplies from overseas markets.The recent weakness of China’s domestic Group III prices relative to other regions cut further the attraction of moving more supplies to the country.The Group III base oils premium over FOB Asia cargo prices fell in March to the lowest in at least three years. The premium to Europe Group III prices is close to its lowest this year.Asia’s premium-grade base oils imports from the Middle East fell to unusually low levels in February for the second time in three months, partly reflecting China’s dwindling demand.China’s Group III prices also weakened relative to domestic Group II prices, with the premium slipping to its lowest since early-2022.Any extension of that trend could incentivize the country’s domestic blenders to procure more Group III base oils in place of Group II.Any such move would put more pressure on China’s Group II refiners and cut further the country’s requirements for Group II supplies from overseas markets..India’s March lube demand rises.China’s February base oils demand falls.Asia's Feb premium-grade base oils imports from Middle East fall
