Taiwan's June exports to India stay high

Taiwan’s base oil exports to India stayed unusually high in June for a second month even as its total exports slumped.

Base oil exports of 12,190t to India in June fell from 14,160t the previous month, government data showed. The volumes were up from a total of less than 14,000t to India during the first four months of the year combined.

Shipments stayed unusually high even as Taiwan’s total base oil exports fell in June to a nine-month low of little more than 23,000t.

The high volumes boosted the share of shipments bound for India to more than 50pc of the total. The share was a record high and up from typical levels of around 10pc of the total.

Exports to India got a boost from supplies that had previously been lined up to move to China. The country is typically Taiwan’s largest market for its Group II base oil supplies.

Some term buyers in the country instead sough to redirect shipments to markets like India because of weak demand and low prices in China’s domestic market.

The moves highlighted the repercussions of weak Chinese demand on the wider Asia-Pacific market as suppliers sought alternative outlets for their shipments.

The rise in Group II shipments from Taiwan to India in June coincided with Group II plant maintenance work in that country that month.

It also gave buyers more leverage to turn down offers for supplies at higher prices than the Taiwan shipments.