Japan’s base oils and lubricants supply stayed lower in April, with the drop in domestic production boosting its imports requirements.The trend is a boon for premium-grade base oils suppliers in the Asia-Pacific region, especially at a time when China’s demand for overseas base oils supplies continued to fall.Japan’s lower output was less helpful for overseas buyers of Group I base oils.The drop in output prolonged the tighter-than-usual availability of Group I base oils in the Asia-Pacific region since late last year.The tighter supply fundamentals in turn sustained unusually firm Group I base oils prices in the region so far this year.Japan’s base oils output of 187,500 kilolitres (166,000 tonnes) in April rose from 180,700 kilolitres the previous month to the highest this year, government data showed.The volume still fell by 11% and for a thirteenth month from year-earlier levels.A pick-up in imports cushioned the impact for domestic blenders.The sharp rise in imports for a third month from year-earlier levels boosted their share of Japan’s supply to 9% of the total in the first four months of the year.The share was up from 5% of total supply in 2023.The impact of the drop in production was larger for overseas blenders.Shipments to overseas markets slid in April for an eighth month and at a faster pace than the fall in output.The fall in shipments was steepest to southeast Asia, and to Singapore especially.Exports to South Korea also fell sharply.But the 45% drop in shipments to the northeast Asian country in the first four months of the year was smaller than the 86% fall in exports to Singapore..S Korea’s April base oils output falls.Italy’s April base oils output rises
Japan’s base oils and lubricants supply stayed lower in April, with the drop in domestic production boosting its imports requirements.The trend is a boon for premium-grade base oils suppliers in the Asia-Pacific region, especially at a time when China’s demand for overseas base oils supplies continued to fall.Japan’s lower output was less helpful for overseas buyers of Group I base oils.The drop in output prolonged the tighter-than-usual availability of Group I base oils in the Asia-Pacific region since late last year.The tighter supply fundamentals in turn sustained unusually firm Group I base oils prices in the region so far this year.Japan’s base oils output of 187,500 kilolitres (166,000 tonnes) in April rose from 180,700 kilolitres the previous month to the highest this year, government data showed.The volume still fell by 11% and for a thirteenth month from year-earlier levels.A pick-up in imports cushioned the impact for domestic blenders.The sharp rise in imports for a third month from year-earlier levels boosted their share of Japan’s supply to 9% of the total in the first four months of the year.The share was up from 5% of total supply in 2023.The impact of the drop in production was larger for overseas blenders.Shipments to overseas markets slid in April for an eighth month and at a faster pace than the fall in output.The fall in shipments was steepest to southeast Asia, and to Singapore especially.Exports to South Korea also fell sharply.But the 45% drop in shipments to the northeast Asian country in the first four months of the year was smaller than the 86% fall in exports to Singapore..S Korea’s April base oils output falls.Italy’s April base oils output rises
