Taiwan’s base oils exports rose in May mostly because of a boost from a cargo whose shipment was delayed from the previous month.The delayed shipment moved to India.Most of the other cargoes that loaded in May moved to China.The pick-up in shipments to China came just weeks ahead of the imposition of tariffs on its imports of base oils shipments from Taiwan.The subsequent rise in costs for the supplies increases the incentive for shipments from Taiwan to move to other markets instead.The move raises the prospect of reversing the pick-up in flows to China in May.Taiwan’s total base oils exports of 38,800 tonnes in May rose from less than 36,000 tonnes the previous month, government data showed.Most of the supplies consisted of light-grade base oils.The May volume include a 9,800-tonne shipment that left Taiwan at the start of the month before heading to India. The shipment had originally been scheduled to leave at end-April.Even including the shipment, Taiwan’s base oils exports of 19,300 tonnes to China in May accounted for half of its total shipments that month.The share of exports to China was up from 42% in April and from around 40% per month over the past year.The rising share in May, and rise in shipments to China to a four-month high, highlighted the ongoing importance of the country as a key outlet for supplies from Taiwan.Any slowdown in shipments to China would likely trigger a subsequent rise in flows to other markets like southeast Asia, India and Middle East.Shipments to the Middle East especially would require base oils price levels that made feasible the arbitrage to that market.Taiwan’s base oils exports to the UAE paused in May for the first time in three months, reflecting the closure of that arbitrage.An extension of the closure of the arbitrage to the UAE, combined with the prospect of a slowdown in shipments to China, would force Taiwan to line up other outlets for its supplies..China April base oils imports fall .India’s April base oils imports rise
Taiwan’s base oils exports rose in May mostly because of a boost from a cargo whose shipment was delayed from the previous month.The delayed shipment moved to India.Most of the other cargoes that loaded in May moved to China.The pick-up in shipments to China came just weeks ahead of the imposition of tariffs on its imports of base oils shipments from Taiwan.The subsequent rise in costs for the supplies increases the incentive for shipments from Taiwan to move to other markets instead.The move raises the prospect of reversing the pick-up in flows to China in May.Taiwan’s total base oils exports of 38,800 tonnes in May rose from less than 36,000 tonnes the previous month, government data showed.Most of the supplies consisted of light-grade base oils.The May volume include a 9,800-tonne shipment that left Taiwan at the start of the month before heading to India. The shipment had originally been scheduled to leave at end-April.Even including the shipment, Taiwan’s base oils exports of 19,300 tonnes to China in May accounted for half of its total shipments that month.The share of exports to China was up from 42% in April and from around 40% per month over the past year.The rising share in May, and rise in shipments to China to a four-month high, highlighted the ongoing importance of the country as a key outlet for supplies from Taiwan.Any slowdown in shipments to China would likely trigger a subsequent rise in flows to other markets like southeast Asia, India and Middle East.Shipments to the Middle East especially would require base oils price levels that made feasible the arbitrage to that market.Taiwan’s base oils exports to the UAE paused in May for the first time in three months, reflecting the closure of that arbitrage.An extension of the closure of the arbitrage to the UAE, combined with the prospect of a slowdown in shipments to China, would force Taiwan to line up other outlets for its supplies..China April base oils imports fall .India’s April base oils imports rise
