Taiwan August exports to India surge

Taiwan’s base oils exports to India rose in August to a three-year high amid steady demand and competitive prices.

Exports to southeast Asia also rose sharply to their third highest level in more than seven years.

The trend reflected a structural shift in shipments away from China and towards other regional markets where strong economic growth was supporting firm base oils demand.

Exports of 15,730t to India in August accounted for more than 30pc of Taiwan’s total exports of 44,810t that month.

The share is typically less than 20pc.

The shipments boosted total exports to India to 55,750t in the first eight months of the year. The volume was up from 32,670t during the same period last year and the highest for that period since 2019.

Exports of more than 30,000t to India and southeast Asia combined in August were the highest in more than seven years. They also far outpaced shipments of little more than 11,000t to China that month.

Exports of more than 128,000t to India and southeast Asia combined in the first eight months of the year also exceeded the volume of China-bound shipments during the same period for the first time.

Taiwan’s previous reliance on China as the market for most of its base oils exports had exposed it to any economic slowdown in the country.

Persistent lockdowns in China this year highlighted that risk. The moves capped economic activity in the country and slashed demand for base oils.

Demand in other markets in Asia-Pacific has continued to rise. Taiwan has increasingly moved to tap those markets instead.

Heavy-grade base oils accounted for most of the shipments that moved to India. The supplies also included light grades and a small volume of very-light grade base oils.