Japan’s base oils output fell in February to its lowest in more than two years, boosting its reliance on imports to sustain sufficient supply.Output of 160,500 kilolitres (142,000 tonnes) in February fell from 169,900 kilolitres the previous month and by 5% from year-earlier levels.Output fell for an eleventh straight month year-on-year following the permanent closure of two Group I base oils plants in Japan since second-half 2022.The subsequent drop in production tightened availability of Group I base oils both in Japan and throughout the Asia-Pacific region.Recent Group I plant maintenance in Thailand in January and February, and then in China from late March, added to the tightness.Asia’s increasingly firm Group I base oils prices reflected the tighter supply fundamentals.Prices moved to increasingly firm premiums to regional gasoil prices and to prices in Europe during the first quarter of the year, ICIS data showed.Lower domestic base oils output boosted Japan’s requirements for more overseas supplies.Base oils imports duly rose in February to a sixteen-month high of almost 23,000 kilolitres.Almost all the supplies originated from South Korea and Qatar.Both countries are key sources of premium-grade base oils.The rise in imports boosted Japan’s total supply, or domestic output and imports combined, to 183,400 kilolitres in February, up from less than 175,000 kilolitres the previous month.The February volume was still the second lowest in a year.Imports accounted for 13% of the total volume, up from a typical level of around 5%.The higher share pointed to a growing reliance on imports to cover domestic requirements, and growing consumption of premium-grade base oils instead of Group I base oils..Japan’s Jan base oil/lube demand mixed.Japan’s January base oils supply falls.Thailand’s January base oils output falls
Japan’s base oils output fell in February to its lowest in more than two years, boosting its reliance on imports to sustain sufficient supply.Output of 160,500 kilolitres (142,000 tonnes) in February fell from 169,900 kilolitres the previous month and by 5% from year-earlier levels.Output fell for an eleventh straight month year-on-year following the permanent closure of two Group I base oils plants in Japan since second-half 2022.The subsequent drop in production tightened availability of Group I base oils both in Japan and throughout the Asia-Pacific region.Recent Group I plant maintenance in Thailand in January and February, and then in China from late March, added to the tightness.Asia’s increasingly firm Group I base oils prices reflected the tighter supply fundamentals.Prices moved to increasingly firm premiums to regional gasoil prices and to prices in Europe during the first quarter of the year, ICIS data showed.Lower domestic base oils output boosted Japan’s requirements for more overseas supplies.Base oils imports duly rose in February to a sixteen-month high of almost 23,000 kilolitres.Almost all the supplies originated from South Korea and Qatar.Both countries are key sources of premium-grade base oils.The rise in imports boosted Japan’s total supply, or domestic output and imports combined, to 183,400 kilolitres in February, up from less than 175,000 kilolitres the previous month.The February volume was still the second lowest in a year.Imports accounted for 13% of the total volume, up from a typical level of around 5%.The higher share pointed to a growing reliance on imports to cover domestic requirements, and growing consumption of premium-grade base oils instead of Group I base oils..Japan’s Jan base oil/lube demand mixed.Japan’s January base oils supply falls.Thailand’s January base oils output falls
