Indonesia’s July base oils imports rise

Indonesia’s base oils imports rose in July to a four-month high amid a surge in shipments from Singapore.

Base oils imports of 46,540t in July rose from 40,390t the previous month and by 32pc from year-earlier levels, government data showed.

The rise in shipments lifted total imports to 287,060t in the first seven months of the year. The volume was up 30pc from 221,080t during the same period last year.

Base oils imports rose in July for the 10^th time in 11 months as a sustained rebound in economic growth boosted the country’s lube consumption.

Indonesia’s economy grew by more than 5pc in the second quarter of the year. The growth rate was even faster than the first three months of the year.

The country’s automobile sales rose in July for the 16^th time in 17 months, and industrial production for a sixth month.

The manufacturing purchasing managers’ index rose in August to a four-month high, pointing to ongoing healthy economic growth.

The pace of that growth could slow after Indonesia raised its fuel prices earlier this month. The move is likely to prompt the country’s central bank to raise interest rates to limit a rise in inflation.

The rise in base oils imports mirrored a similar trend for similar reasons in other southeast Asian markets like Vietnam.

The stronger consumption helped to partially counter the slump in Chinese demand this year and spurred regional base oils producers to move more shipments to southeast Asia.

The stronger consumption also curbed Indonesia’s own exports of Group I base oils to other markets.

Indonesia’s base oils imports of almost 28,000t from Singapore in July rose from an already-high 22,450t in June to the highest in more than five years.

The surge in shipments left Singapore’s base oils exports to Indonesia in July higher than its shipments to China for the first time in more than five years.

The island-state’s exports to China have typically been some 20,000-30,000t higher than its shipments to Indonesia.