Indonesia’s premium-grade exports fall

Indonesia’s premium-grade base oil exports fell in March to a 16-month low, reflecting the impact of plant maintenance work during the month.

Exports of 5,610t in March fell by almost 80pc from 26,810t the previous month, government data showed.

The volume was the lowest since November 2020, when a Group III base oil unit in Dumai was shut down for maintenance work.

The drop in exports this time round was less steep than in November 2020. It also coincided with steady supplies from Group III base oil producers in other markets such as Europe.

Those steady volumes helped to cushion the impact of the drop in shipments from Indonesia, leaving the market well supplied.

The drop in shipments in March cut Indonesia's premium-grade base oil exports to 61,440t in the first quarter of the year.

The volume was down from more than 90,000t during the same period a year earlier and the lowest quarterly volume since late 2020.

There were no exports to the Netherlands in March for the first time in three months. The impact was cushioned by the shipment of a larger-than-usual volume of supplies from Indonesia to the Netherlands in February.

Exports to South Korea fell in March to a 16-month low of less than 4,200t. Shipments to that market are typically closer to 20,000 t/month. The slowdown coincided with some plant maintenance work in South Korea.