Indonesia’s April base oil imports slip

Indonesia’s base oil imports held firm in April, adding to sustained buying interest in the southeast Asia market.

Imports of 40,030t in April fell from more than 53,000t the previous month, government data showed. The March volume had been unusually high – the second highest in more than three years.

The April imports rose from year-earlier levels for the seventh time in eight months and held just above average levels of around 39,600 t/month over the past year.

Imports have risen against the backdrop of strong automobile sales and rising industrial production.

Auto sales rose in April for a 14^th straight month. Industrial production has risen steadily since the first quarter of 2021.

Growing demand for Group II base oils has added to demand for overseas supplies. Indonesia has plants that produce Group I and Group III base oils, but no Group II.

The firm demand in southeast Asian markets like Indonesia has provided regional producers with an increasingly large and important outlet for their supplies. It has also helped to counter the impact of slower-than-expected Chinese demand.

Singapore remained the largest supplier for Indonesia and South Korea the second largest. Imports from both of those markets edged down in April from the previous month.