Taiwan’s base oils exports fell in February partly because the loading of several cargoes was delayed to March.Exports to China still rose to a four-month high even with the drop in total shipments.The rise in flows to China suggested the country’s demand had started to revive more strongly.The fall in China’s base oils output in February suggested that a rise in shipments to the country was covering for the fall in domestic output rather than for a pick-up in demand..China's February base oils output falls.The contrasting signals highlighted the uncertainty about prospects for China’s base oils demand over the coming months and its impact on regional base oils prices.The immediate impact was to absorb more of Taiwan’s base oils shipments.Its exports of almost 33,000t in February fell from more than 45,000t the previous month, government data showed..Taiwan is home to a 600,000 t/yr Group II base oils plant. Its exports are typically around 40,000 t/month.Lower base oils exports in February contrasted with a rise in its shipments to China to close to 24,000t. The volume rose from less than 15,000t the previous month to the highest since November.Chinese demand for overseas supplies had risen at that time partly to cover for a drop in domestic base oils production.The same dynamic likely boosted its demand for supplies from Taiwan in February.The rise in exports boosted the share of shipments bound for China to more than 70pc of Taiwan’s total volume.The share was up from typical levels of around 40pc of the total over the past year.The rise in shipments bound for China cut Taiwan’s availability of base oils supplies for other markets.The tighter supply gave Taiwan’s base oils producer more leverage over the prices for those remaining supplies..Asia’s January exports to China fall
Taiwan’s base oils exports fell in February partly because the loading of several cargoes was delayed to March.Exports to China still rose to a four-month high even with the drop in total shipments.The rise in flows to China suggested the country’s demand had started to revive more strongly.The fall in China’s base oils output in February suggested that a rise in shipments to the country was covering for the fall in domestic output rather than for a pick-up in demand..China's February base oils output falls.The contrasting signals highlighted the uncertainty about prospects for China’s base oils demand over the coming months and its impact on regional base oils prices.The immediate impact was to absorb more of Taiwan’s base oils shipments.Its exports of almost 33,000t in February fell from more than 45,000t the previous month, government data showed..Taiwan is home to a 600,000 t/yr Group II base oils plant. Its exports are typically around 40,000 t/month.Lower base oils exports in February contrasted with a rise in its shipments to China to close to 24,000t. The volume rose from less than 15,000t the previous month to the highest since November.Chinese demand for overseas supplies had risen at that time partly to cover for a drop in domestic base oils production.The same dynamic likely boosted its demand for supplies from Taiwan in February.The rise in exports boosted the share of shipments bound for China to more than 70pc of Taiwan’s total volume.The share was up from typical levels of around 40pc of the total over the past year.The rise in shipments bound for China cut Taiwan’s availability of base oils supplies for other markets.The tighter supply gave Taiwan’s base oils producer more leverage over the prices for those remaining supplies..Asia’s January exports to China fall
