China’s base oils output rose in December even with the loss of production because of maintenance work and a recent plant closure.Total paraffinic base oils output of close to 470,000 tonnes in December rose from around 450,000 tonnes the previous month, OilChem China data showed.The firm production levels lifted China’s total output to more than 5.40 million tonnes in 2024.The volume rose by 21% from less than 4.50 million tonnes in 2023 to a three-year high.The rise in output highlighted China’s large latent base oils production capacity and the sharp fall in its run-rates in 2022 and 2023.Last year’s base oils output was still down 16% from 2021, reflecting the ongoing availability of additional unused production capacity.The rise in output throughout the year and in December provided domestic buyers with increasingly plentiful supplies to cover requirements.The ready availability of supplies, the option of procuring smaller volumes for prompt delivery, and the competitive prices of the supplies curbed the need for and attraction of securing additional shipments from regional sources.The rising availability of domestic supplies also facilitated buyers’ moves to manage stocks carefully ahead of and during the lunar new year holidays from end-January.China’s Group II base oils output recovered to close to 360,000 tonnes in December, from less than 345,000 tonnes the previous month.Output rose even with the shutdown of a major Group II base oils unit from late November to early January, and the shutdown of another plant in second-half December.Group III base oils output rose to close to 40,000 tonnes in December after dipping below 33,000 tonnes the previous month.The volumes were up from typical levels of less than 13,000 tonnes/month in 2023.Rising output of the premium-grade base oils cut buyers’ requirements for Group III supplies from overseas sources like the Middle East.Group I base oils output edged down to less than 70,000 tonnes in December.Output held close to that level during each of the previous three months.The steady output suggested that production at a key Group I base oils unit could have already halted at least a month before its permanent closure on October.It could also point to a pick-up in output from other Group I plants in China..China’s November base oils output falls.S Korea Nov base oils exports hold firm
China’s base oils output rose in December even with the loss of production because of maintenance work and a recent plant closure.Total paraffinic base oils output of close to 470,000 tonnes in December rose from around 450,000 tonnes the previous month, OilChem China data showed.The firm production levels lifted China’s total output to more than 5.40 million tonnes in 2024.The volume rose by 21% from less than 4.50 million tonnes in 2023 to a three-year high.The rise in output highlighted China’s large latent base oils production capacity and the sharp fall in its run-rates in 2022 and 2023.Last year’s base oils output was still down 16% from 2021, reflecting the ongoing availability of additional unused production capacity.The rise in output throughout the year and in December provided domestic buyers with increasingly plentiful supplies to cover requirements.The ready availability of supplies, the option of procuring smaller volumes for prompt delivery, and the competitive prices of the supplies curbed the need for and attraction of securing additional shipments from regional sources.The rising availability of domestic supplies also facilitated buyers’ moves to manage stocks carefully ahead of and during the lunar new year holidays from end-January.China’s Group II base oils output recovered to close to 360,000 tonnes in December, from less than 345,000 tonnes the previous month.Output rose even with the shutdown of a major Group II base oils unit from late November to early January, and the shutdown of another plant in second-half December.Group III base oils output rose to close to 40,000 tonnes in December after dipping below 33,000 tonnes the previous month.The volumes were up from typical levels of less than 13,000 tonnes/month in 2023.Rising output of the premium-grade base oils cut buyers’ requirements for Group III supplies from overseas sources like the Middle East.Group I base oils output edged down to less than 70,000 tonnes in December.Output held close to that level during each of the previous three months.The steady output suggested that production at a key Group I base oils unit could have already halted at least a month before its permanent closure on October.It could also point to a pick-up in output from other Group I plants in China..China’s November base oils output falls.S Korea Nov base oils exports hold firm
