Indonesia's premium-grade exports rise

Indonesia’s exports of premium-grade base oils rebounded in April following the completion of plant maintenance work in the first quarter of the year.

Base oil exports of 24,000t in April rebounded from a 16-month low of 5,610t in March. The drop in shipments coincided with scheduled maintenance work that month.

The rise in exports lifted shipments closer to average levels of around 27,000 t/month over the past year.

The steady export volumes have mirrored a similar trend this year among other key producers of premium-grade base oils in markets like Europe and North America.

The steady flow of supplies contrasted with a sharp fall in availability of premium grades the same time a year ago because of widespread plant maintenance work. Prices for the product surged in response.

The steady volumes have curbed any supply tightness of the grade in markets like Europe, especially compared with Group I base oils.

Group I base oil prices have strengthened relative to Group III in response to those diverging fundamentals.

Indonesia resumed base oil exports to the Netherlands in April with a shipment of 7,500t. There were no shipments to the Netherlands the previous month.

Exports to South Korea recovered in April to a three-month high of 13,510t.