Exports rise for fourth time in five months
Singapore's exports stay strong in November, pointing to extension of trend
SE Asia demand crucial to help balance Asia's rising supply
Asia’s base oils exports to southeast Asia climbed in October for the fourth time in five months, signalling stronger demand in the region.
Shipments from Asia’s largest suppliers came to more than 185,000 tonnes, up 4% from year-earlier levels, preliminary trade data showed.
Volumes remained elevated for a third straight month even as they slipped from a one-year-high of more than 193,000 tonnes in September.
Singapore’s base oils exports to southeast Asia held strong so far in November, suggesting the positive trend could continue.
The uptick in flows to southeast Asia absorbed more of Asia’s increasing base oils supply following the completion of plant-maintenance work and the recent start-up of new production capacity.
Asia’s exports to other outlets like the Middle East still rose in October despite the pick-up in shipments to southeast Asia.
The trend underscores the importance of southeast Asian demand in balancing Asia’s growing supply, while also showing the limits of the market’s capacity.
The prospect of structural supply increasingly outpacing firm demand is set to increase the importance for refiners to maximise their market share in growth-outlets like southeast Asia.
