Taiwan’s base oils exports rose to a four-month high in July, extending a wave of higher-than-usual shipments since the start of the year.Total exports came to 51,700 tonnes in July, government data showed.The volume rose from more than 46,000 tonnes during each of the previous two months and from typical levels of around 42,000 tonnes/month in 2024.The high shipments lifted Taiwan’s total base oils exports to 330,000 tonnes in the first seven months of the year. The volume was the highest for that seven-month period since 2019..The rise in shipments this year contrasted with a drop in exports from other key regional suppliers like South Korea.The drop in supplies, combined with Asia’s firm demand, kept the region’s fundamentals tighter than usual in the first half of the year.The tighter fundamentals supported firm regional Group II base oils prices, especially for heavy grades.The tight fundamentals and firm prices in turn increased the benefit for Taiwan’s steady and consistently-high base oils exports..Those fundamentals could change in the coming months, with the planned ramp-up of output at a new base oils unit in Singapore likely to boost Asia’s base oils supply.Taiwan’s growing diversification of outlets for its shipments could cushion the impact of any such rise in regional supply.Its base oils exports previously relied on China as the main outlet for its supplies.That reliance fell sharply in recent years as more supplies moved to southeast Asia and then to India and the Middle East.That diversification of shipments extended to Pakistan and Bangladesh this year, including in July.A small volume of supplies even moved to Nigeria in July for the first time.Taiwan’s shrinking reliance on any one market cushioned the impact of any slowdown in flows to any of those markets.Its growing number of outlets could also give it more flexibility to adjust the destination of shipments in response to the expected rise in Asia’s base oils supply in the coming months..Taiwan’s June base oils exports hold firm.S Korea’s June base oils exports rise.Base Oil News stories and analysis also available on ICIS platform
