Indonesia’s Group I base oils exports stayed low in December for an eighth month, adding to a regionwide drop in supplies.The sustained fall in base oils exports from the Asia-Pacific region in the final months of last year curbed arbitrage flows to markets like the Americas..Asia's Nov base oils exports stay low.They also eased downward pressure on regional prices at a time when demand typically slows.Regional exports are likely to need to increase from early this year to cover a seasonal pick-up in lube consumption and growing expectations of a strong recovery in demand from China.Indonesia is a source of Group I bright stock for the Chinese market. Buying interest in its supplies typically increases when regional demand is higher and supply is tight.Demand for its supplies surged in first-half 2021 when regional supply was unexpectedly tight and coincided with strong demand from China, southeast Asia and India. Demand was lower in 2022, when the slump in Chinese demand freed up availability from other sources like Thailand.Demand is likely to be firmer this year as Chinese demand revives.But Indonesia's base oils exports remained low.Shipments of less than 2,800t in December held at or below the 3,000t level for an eighth month, government data showed..The drop in supplies cut total exports to 52,950t in 2022, down from more than 69,000t the previous year.More than 60pc of the 2022 export volume was shipped in the first four months of the year.The trend reflected the seasonal rise in demand in China and in southeast Asia during that period.Three cargoes moved to China during the four-month period. There were no cargoes to China since then.Indonesia may be less able to meet a similar or larger rise in demand from those markets during the first few months of this year.Strong domestic demand squeezed the country’s surplus supply for export. Higher domestic prices than regional prices cut the incentive to export any surplus.Scheduled plant maintenance work in the first quarter of this year is likely to cut further the availability of any surplus volumes..China’s Jan base oils output stays low
Indonesia’s Group I base oils exports stayed low in December for an eighth month, adding to a regionwide drop in supplies.The sustained fall in base oils exports from the Asia-Pacific region in the final months of last year curbed arbitrage flows to markets like the Americas..Asia's Nov base oils exports stay low.They also eased downward pressure on regional prices at a time when demand typically slows.Regional exports are likely to need to increase from early this year to cover a seasonal pick-up in lube consumption and growing expectations of a strong recovery in demand from China.Indonesia is a source of Group I bright stock for the Chinese market. Buying interest in its supplies typically increases when regional demand is higher and supply is tight.Demand for its supplies surged in first-half 2021 when regional supply was unexpectedly tight and coincided with strong demand from China, southeast Asia and India. Demand was lower in 2022, when the slump in Chinese demand freed up availability from other sources like Thailand.Demand is likely to be firmer this year as Chinese demand revives.But Indonesia's base oils exports remained low.Shipments of less than 2,800t in December held at or below the 3,000t level for an eighth month, government data showed..The drop in supplies cut total exports to 52,950t in 2022, down from more than 69,000t the previous year.More than 60pc of the 2022 export volume was shipped in the first four months of the year.The trend reflected the seasonal rise in demand in China and in southeast Asia during that period.Three cargoes moved to China during the four-month period. There were no cargoes to China since then.Indonesia may be less able to meet a similar or larger rise in demand from those markets during the first few months of this year.Strong domestic demand squeezed the country’s surplus supply for export. Higher domestic prices than regional prices cut the incentive to export any surplus.Scheduled plant maintenance work in the first quarter of this year is likely to cut further the availability of any surplus volumes..China’s Jan base oils output stays low
