Japan’s base oils supply fell to a four-month low in January amid a dip in domestic output and imports.Demand by contrast rose on the back of a pick-up in exports, leaving consumption outpacing supply for the first time in eight months.Japan’s base oils supply, or output and imports combined, fell to 177,500 kilolitres (157,000 tonnes) in January, government data showed.The volume fell from more than 190,000 kilolitres in each of the previous three months.The country’s demand, or consumption and exports combined, climbed to 183,500 kilolitres in January, up from 167,000 kilolitres the previous month.Supply duly lagged demand by 6,000 kilolitres in January, after exceeding consumption by more than 21,000 kilolitres in each of the previous three months.The sustained surplus boosted net supply to more than 73,000 kilolitres in the fourth quarter of last year. .The surplus rose from close to 26,000 kilolitres during the previous three months to a multi-year high. The surplus rose despite a sustained fall in Japan’s base oils output.The rising surplus instead reflected the impact of a surge in imports and a slump in exports.The growing surplus pointed to rising consumption of premium-grade base oils from overseas markets, and a fall in requirements for domestic Group I supplies.Such an scenario would have left a growing overhang of Group I supplies even with plant maintenance work throughout second-half 2024.The rise in exports in January could reflect moves to balance out that dynamic.Any extension of that trend, and subsequent pick-up in exports, could help to boost tight Group I base oils supply in the Asia-Pacific region.But another round of plant maintenance work in Japan could limit the volume of any such flows.The shipment of the largest share of Japan’s base oils exports to South Korea also curbed availability for other regions like southeast Asia.That region’s Group I supply shortage was also focused mostly on brightstock.Any additional shipments that failed to include that product would have little impact on Asia’s structural shortage of those supplies..S Korea’s Jan base oils output improves.Taiwan’s January base oils exports fall.China’s Jan base oils output holds firm
Japan’s base oils supply fell to a four-month low in January amid a dip in domestic output and imports.Demand by contrast rose on the back of a pick-up in exports, leaving consumption outpacing supply for the first time in eight months.Japan’s base oils supply, or output and imports combined, fell to 177,500 kilolitres (157,000 tonnes) in January, government data showed.The volume fell from more than 190,000 kilolitres in each of the previous three months.The country’s demand, or consumption and exports combined, climbed to 183,500 kilolitres in January, up from 167,000 kilolitres the previous month.Supply duly lagged demand by 6,000 kilolitres in January, after exceeding consumption by more than 21,000 kilolitres in each of the previous three months.The sustained surplus boosted net supply to more than 73,000 kilolitres in the fourth quarter of last year. .The surplus rose from close to 26,000 kilolitres during the previous three months to a multi-year high. The surplus rose despite a sustained fall in Japan’s base oils output.The rising surplus instead reflected the impact of a surge in imports and a slump in exports.The growing surplus pointed to rising consumption of premium-grade base oils from overseas markets, and a fall in requirements for domestic Group I supplies.Such an scenario would have left a growing overhang of Group I supplies even with plant maintenance work throughout second-half 2024.The rise in exports in January could reflect moves to balance out that dynamic.Any extension of that trend, and subsequent pick-up in exports, could help to boost tight Group I base oils supply in the Asia-Pacific region.But another round of plant maintenance work in Japan could limit the volume of any such flows.The shipment of the largest share of Japan’s base oils exports to South Korea also curbed availability for other regions like southeast Asia.That region’s Group I supply shortage was also focused mostly on brightstock.Any additional shipments that failed to include that product would have little impact on Asia’s structural shortage of those supplies..S Korea’s Jan base oils output improves.Taiwan’s January base oils exports fall.China’s Jan base oils output holds firm
