Japan’s base oils output recovered to more typical levels in October, freeing up more supplies for export at a time when the Asia-Pacific region faced increasingly tight availability of Group I base oils.Any benefit for southeast Asia from a pick-up in supplies was likely to remain limited.Japan’s base oils output of 183,500 kilolitres (162,500 tonnes) in October rose from two-year lows of less than 160,000 kilolitres in each of the previous two months, government data showed.The volume was the highest in three months and closer to more typical levels of around 185,000 kilolitres/month in the year to June.The volume was still down sharply from close to 200,000 kilolitres/month in 2023 and more than 210,000 kilolitres/month in 2022.The lower output reflected the impact of several base oils plant closures during those years.The even lower output in August and September coincided with unplanned plant maintenance work during those months.The recovery in output in October pointed to completion of the maintenance work.The higher output coincided with a sustained rise in base oils imports, pushing up total supply in October close to a six-month high of more than 205,000 kilolitres.Rising supply contrasted with a fall in base oils and lube sales in October for the fourth time in five months from year-earlier levels.The disconnect freed up more supplies for export in an Asia-Pacific market where Group I production capacity continued to shrink.Japan’s base oils and lube exports duly rose by 39% in October and for the first time in fourteen months from year-earlier levels.South Korea was the main beneficiary of the rise in shipments and continued to be least impacted by the slump in Japan’s base oils exports over the past year.The impact on southeast Asia was much larger during that time.Japan's exports to southeast Asia mostly held in a narrow range over the last eight months to October at levels that were more than 60% lower than year-earlier volumes.Exports to the region were likely to remain close to those lower levels even if Japan’s base oils output sustained its recent recovery..China’s October base oils output rises.Taiwan’s October base oils exports rise.S Korea’s October base oils exports rise
