Indonesia April Grp I exports hold firm

Indonesia’s exports of Group I base oils held firm in April, with an unusually large share of the supplies staying in southeast Asia.

Exports of 10,500t in April edged down from 11,890t the previous month, government data showed. The volume was still the second highest in the past 13 months.

Total base oil exports of 33,380t in the first four months of the year were down 24pc from 43,930t during the same period last year.

Unusually high regional base oil prices and tight supply during first-half 2021 incentivized suppliers such as Indonesia to boost their exports during that period.

Regional Group I base oil prices are now much lower than year-earlier levels. Supply is also more plentiful. Demand from the key market of China has been weak.

But demand in southeast Asia has rebounded strongly as the relaxation of Covid-19 restrictions triggered a strong pick-up in economic activity.

Indonesia’s Group I base oil exports of 7,840t to southeast Asia in April rose to the highest in more than three years. The volumes were up from more typical levels of less than 3,000 t/month over the past year.

Exports of 6,160t to Singapore in April were higher even than during early 2021, when demand was unusually strong.

Base oil exports of 2,000t to China in April rose from 1,050t the previous month.

Total shipments of 6,930t to that market in the first four months of the year were down from more than 13,000t during the same period last year.

The slump in shipments reflected the slowdown in Chinese demand and regional producers’ moves to redirect supplies to other markets instead.