Taiwan’s May base oil imports rise

Taiwan’s base oil imports rose in May to their second highest level in the last eight months, with Japan the largest supplier of those shipments.

Total imports of 8,300t in May more than doubled from 3,070t the previous month, government data showed. The volume was also up from typical levels of around 6,470 t/month over the past year.

Taiwan’s imports have held steady even as domestic lube demand has slowed amid restrictions to control the jump in Covid-19 infections in recent months.

Supplies from Japan have consistently accounted for at least 30pc of those imports and are a key source of Group I base oils for Taiwan. Its imports of 3,260t from the northeast Asian country in May were the highest in eight months.

The availability of those supplies is likely to fall over the coming year following the planned closure of a Group I base oil unit in Japan in second-half 2022. Another plant is set to be closed before the end of next year.

Taiwan would then need to cover more of its Group I base oil requirements with supplies from other sources. Base oil producers in southeast Asia are the most likely alternative.