Japan and Thailand’s combined base oils output fell in February to a four-month low and coincided with plant maintenance work in Indonesia.All three countries are key producers of Group I base oils in the Asia-Pacific market.Their drop in Group I base oils supply coincided with a gradual revival in base oils and lube demand in China and a seasonal rise in consumption in southeast Asia.Base oils output of 218,600 kilolitres (193,600t) from Japan and Thailand combined fell from more than 250,000kl the previous month, government data showed..The volume was down from typical levels of more than 260,000 kl/month in 2022.It was up only slightly from 212,100kl in October, when Thailand’s base oils output slumped because of maintenance work at both of its Group I plants.Firmer Asia-Pacific Group I base oils prices in recent weeks reflected the region's more balanced supply-demand fundamentals.Asia Group I prices rose strongly relative to crude and diesel since early February to the highest in almost eight months.Japan’s base oils output is likely to remain lower than last year as refiners prepare for a heavier round of plant maintenance over the coming months.Firmer prices incentivize Thailand’s refiners to boost their base oils output.But more of their supplies were likely to remain in the domestic market, where demand typically peaks ahead of and during the Songkran water festival festival in April.Indonesia’s Group I base oils output is set to rise following the completion of plant maintenance work that began in February.But its Group I exports remained low since the second quarter of last year as rising domestic demand cut surplus availability for overseas markets.Lower Group I base oils availability would increase requirements for supplies from Singapore, the only other major regular exporter of Group I base oils in the region..Japan’s February base oils output falls
Japan and Thailand’s combined base oils output fell in February to a four-month low and coincided with plant maintenance work in Indonesia.All three countries are key producers of Group I base oils in the Asia-Pacific market.Their drop in Group I base oils supply coincided with a gradual revival in base oils and lube demand in China and a seasonal rise in consumption in southeast Asia.Base oils output of 218,600 kilolitres (193,600t) from Japan and Thailand combined fell from more than 250,000kl the previous month, government data showed..The volume was down from typical levels of more than 260,000 kl/month in 2022.It was up only slightly from 212,100kl in October, when Thailand’s base oils output slumped because of maintenance work at both of its Group I plants.Firmer Asia-Pacific Group I base oils prices in recent weeks reflected the region's more balanced supply-demand fundamentals.Asia Group I prices rose strongly relative to crude and diesel since early February to the highest in almost eight months.Japan’s base oils output is likely to remain lower than last year as refiners prepare for a heavier round of plant maintenance over the coming months.Firmer prices incentivize Thailand’s refiners to boost their base oils output.But more of their supplies were likely to remain in the domestic market, where demand typically peaks ahead of and during the Songkran water festival festival in April.Indonesia’s Group I base oils output is set to rise following the completion of plant maintenance work that began in February.But its Group I exports remained low since the second quarter of last year as rising domestic demand cut surplus availability for overseas markets.Lower Group I base oils availability would increase requirements for supplies from Singapore, the only other major regular exporter of Group I base oils in the region..Japan’s February base oils output falls
