Japan’s base oils demand fell in March for a second month from year-earlier levels as US tariffs weighed on the country’s industrial activity.Lower demand coincided with a pick-up in domestic base oils output.The contrasting trends triggered a rise in surplus base oils supplies and subsequent pick-up in shipments to overseas markets.Lower demand and higher exports highlighted the widespread and sometimes unforeseen repercussions of US tariffs even before they came into effect.The repercussions included their impact on base oils even though the product is excluded from the import tax.Japan’s base oils and lube consumption of 127,600 kilolitres (113,000 tonnes) in March fell by 16% from year-earlier levels, government data showed..The slowdown followed a 17% contraction the previous month, when automobile lubricants consumption fell at a steeper pace than consumption of industrial oils.The steeper fall in consumption of automobile lubricants mirrored a sharp slowdown in Japan’s motor vehicle production in March.The US is a key market for Japan’s automobile exports.The slowdown in motor vehicle production was a key drag on the country’s industrial production, which fell in March from the previous month and from year-earlier levels.The subsequent imposition of US tariffs on automobile imports from early April raised the prospect of compounding the slowdown in Japan’s motor vehicle production and automobile lube demand.Lower base oils demand in March contrasted with a recovery in the country’s base oils output to a five-month high of 181,000 kilolitres.The volume rebounded from a six-month low of 152,000 kilolitres in February.Output was likely to remain volatile because of a steady stream of base oils plant maintenance work in Japan.Higher output and lower domestic demand freed up more supplies for export.Shipments to overseas markets duly rebounded to 55,000 kilolitres in March.The volume rose from typical levels of around 33,000 kilolitres/month over the past year to the highest since August 2023.The closure of a base oils unit in Japan in late-2023 was a key factor behind the subsequent slump in exports.The fall in exports in the intervening months included a slump in shipments to southeast Asia.The drop in supplies compounded the region’s increasingly tight availability of Group I base oils, especially of brightstock.The US’ imposition of tariffs could inadvertently help to ease that tightness..Japan’s February base oils output falls.S Korea’s March base oils output falls.China’s March base oils demand rises
Japan’s base oils demand fell in March for a second month from year-earlier levels as US tariffs weighed on the country’s industrial activity.Lower demand coincided with a pick-up in domestic base oils output.The contrasting trends triggered a rise in surplus base oils supplies and subsequent pick-up in shipments to overseas markets.Lower demand and higher exports highlighted the widespread and sometimes unforeseen repercussions of US tariffs even before they came into effect.The repercussions included their impact on base oils even though the product is excluded from the import tax.Japan’s base oils and lube consumption of 127,600 kilolitres (113,000 tonnes) in March fell by 16% from year-earlier levels, government data showed..The slowdown followed a 17% contraction the previous month, when automobile lubricants consumption fell at a steeper pace than consumption of industrial oils.The steeper fall in consumption of automobile lubricants mirrored a sharp slowdown in Japan’s motor vehicle production in March.The US is a key market for Japan’s automobile exports.The slowdown in motor vehicle production was a key drag on the country’s industrial production, which fell in March from the previous month and from year-earlier levels.The subsequent imposition of US tariffs on automobile imports from early April raised the prospect of compounding the slowdown in Japan’s motor vehicle production and automobile lube demand.Lower base oils demand in March contrasted with a recovery in the country’s base oils output to a five-month high of 181,000 kilolitres.The volume rebounded from a six-month low of 152,000 kilolitres in February.Output was likely to remain volatile because of a steady stream of base oils plant maintenance work in Japan.Higher output and lower domestic demand freed up more supplies for export.Shipments to overseas markets duly rebounded to 55,000 kilolitres in March.The volume rose from typical levels of around 33,000 kilolitres/month over the past year to the highest since August 2023.The closure of a base oils unit in Japan in late-2023 was a key factor behind the subsequent slump in exports.The fall in exports in the intervening months included a slump in shipments to southeast Asia.The drop in supplies compounded the region’s increasingly tight availability of Group I base oils, especially of brightstock.The US’ imposition of tariffs could inadvertently help to ease that tightness..Japan’s February base oils output falls.S Korea’s March base oils output falls.China’s March base oils demand rises
