Japan’s base oils supply fell in January to the lowest in more than two years amid a simultaneous dip in domestic output and imports.The drop in supply highlighted the country’s growing reliance on base oils imports to cover more of its requirements.The trend partly reflected blenders’ requirements for growing volumes of premium-grade base oils to produce higher-quality lubricants.It also reflected the fall in domestic supply following the closure of a swathe of Japan’s own base oils production capacity in recent years.Asia’s Group I base oils prices reflected the tighter supply fundamentals, ICIS data showed.The region’s Group I heavy-neutrals prices maintained a premium to Group II prices since the beginning of December.They also held at firmer levels versus regional gasoil prices so far this year compared with the same time a year earlier.Japan’s base oils output of 169,900 kilolitres (151,000t) in January fell from close to 193,000kl the previous month, government data showed.Output fell by 11pc in January and for a tenth straight month from year-earlier levels.Production kept falling following the closure of a Group I base oils unit last October, and another one about a year before that.Japan’s base oils imports slumped in January to their lowest in more than a decade, compounding the tighter supply.Imports fell because of a slowdown in shipments from South Korea and a pause in cargoes from Qatar for the first time since late 2020.Japan’s base oils supply, or production and imports combined, duly fell in January to a twenty-six month low of less than 175,000kl..Asia’s December base oils supply falls.Singapore Jan exports rise, imports fall
Japan’s base oils supply fell in January to the lowest in more than two years amid a simultaneous dip in domestic output and imports.The drop in supply highlighted the country’s growing reliance on base oils imports to cover more of its requirements.The trend partly reflected blenders’ requirements for growing volumes of premium-grade base oils to produce higher-quality lubricants.It also reflected the fall in domestic supply following the closure of a swathe of Japan’s own base oils production capacity in recent years.Asia’s Group I base oils prices reflected the tighter supply fundamentals, ICIS data showed.The region’s Group I heavy-neutrals prices maintained a premium to Group II prices since the beginning of December.They also held at firmer levels versus regional gasoil prices so far this year compared with the same time a year earlier.Japan’s base oils output of 169,900 kilolitres (151,000t) in January fell from close to 193,000kl the previous month, government data showed.Output fell by 11pc in January and for a tenth straight month from year-earlier levels.Production kept falling following the closure of a Group I base oils unit last October, and another one about a year before that.Japan’s base oils imports slumped in January to their lowest in more than a decade, compounding the tighter supply.Imports fell because of a slowdown in shipments from South Korea and a pause in cargoes from Qatar for the first time since late 2020.Japan’s base oils supply, or production and imports combined, duly fell in January to a twenty-six month low of less than 175,000kl..Asia’s December base oils supply falls.Singapore Jan exports rise, imports fall